Why do I need to provide a Motor Vehicle Wholesaler Surety Bond to the California DMV?
The state of California requires individuals applying for a motor vehicle wholesale-only dealer license to submit a $10,000 surety bond to the California Department of Motor Vehicles (DMV). A Motor Vehicle Wholesaler Surety Bond guarantees that the principal (vehicle dealer) complies with Sections 11700 – 11740 of the California Vehicle Code and provides protection to purchasers, sellers, financing agencies and governmental agencies from monetary loss if the principal engages in any fraud or makes any fraudulent representations. If a harmed party suffers a loss due to fraud, fraudulent representation or violation of these statutes, a claim can be filed against the bond. If the claim is validated, the surety will pay damages up to the penal sum of the bond to resolve the claim. The principal is then responsible to reimburse the surety of any monies paid out, including all attorneys’ fees incurred.
What is the term for a Motor Vehicle Wholesaler Surety Bond?
California Motor Vehicle Wholesaler Surety Bonds have a continuous term and remain in effect until canceled. The surety can cancel the bond at any time by providing written notice to the DMV 30 days prior to the effective cancelation date.
How much will the Motor Vehicle Wholesaler Surety Bond cost?
Pacific Surety is proud to offer a variety of approvals, regardless of credit, with rates as low at $100 annually and discounted two-year pricing at $175 for qualifying applicants. It typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
Surety Bond Name
Motor Vehicle Wholesaler Surety Bonds – California
$10,000Request a Free Quote