What Are Motor Vehicle Dealer Bonds?
These license and permit surety bonds serve as a safeguard against potential acts of fraud and ensure that the Motor Vehicle Dealer complies with all laws and regulations. Fraudulent actions made on behalf of the auto dealer, such as the misrepresentation of a vehicle or its condition, can result in significant losses for the pertinent buyer, seller, financing organization or government agency.
Who Needs A Motor Vehicle Dealer Surety Bond?
Motor Vehicle Dealers in most states are required to file a motor vehicle dealer surety bond with the Department of Motor Vehicles (DMV) before their dealer license can be issued. Depending on the state, this bond goes by many names including automobile bonds, car dealer bonds, wholesale dealer bonds and used car dealer bonds.
How Much Are Motor Vehicle Dealer Surety Bonds Written For?
The penalty amount for a Motor Vehicle Dealer Surety Bond will vary by state. The following are some of the more popular offerings from Pacific Surety:
- Arizona – $100,000 Motor Vehicle Dealer Surety Bond
- California – $50,000 Motor Vehicle Dealer Surety Bond
- California – $10,000 Wholesale Only Dealer Surety Bond
- Florida – $25,000 Motor Vehicle Dealer Surety Bond
- Indiana – $25,000 Motor Vehicle Dealer Surety Bond
- Texas – $25,000 Motor Vehicle Dealer Surety Bond
Please contact your local authority for information about Motor Vehicle Dealer Surety Bond requirements in your state.
How Much Do Auto Dealer Surety Bonds Cost?
Pricing for Auto Dealer Surety Bonds varies by state. An underwriter will review your application and your premium will be based on the following factors:
- The State Requiring the Bond
- Amount of the Bond
- Term Length of the Bond
- Personal Credit for all Owners With at Least a 10% Ownership Stake in the Business
Individuals with good credit can expect to pay between 1% and 5% of the bond amount. Qualified applicants could pay as little as $500 annually for a $50,000 Motor Vehicle Dealer Surety Bond. To find out how much your Motor Vehicle Dealer Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I Get A Motor Vehicle Dealer Surety Bond With Bad Credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Motor Vehicle Dealer Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay between 10% and 20% of the bond amount in premium.
To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
Can The Premium For Motor Vehicle Dealer Bonds Financed?
Pacific Surety has an industry-leading premium finance program that gives our clients the ability to purchase a bond when the upfront costs might be prohibitive to them. Applicants who choose this option will pay a percentage of their premium as a down payment, and the balance of the premium will be paid in four (4) monthly installments.
Please contact our staff for additional information regarding our finance program.
How Do I Get A Motor Vehicle Dealer Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing.
If you prefer to speak with our knowledgeable staff, please call 1-866-722-7837 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.