AUTO DEALER BONDS
Surety Bonds for Vehicle Dealers
Auto dealers in most states must file a surety bond with the state’s Department of Motor Vehicles (DMV) before they can receive their auto dealer license. Unfortunately, purchasing an auto dealer bond can be one of the most confusing parts of getting a dealer license. That’s why we developed the following comprehensive guide to auto dealer bonding.
Surety bonds are designed to protect customers and the state from auto dealers that commit fraud. A surety bond will help ensure that your dealership will follow the car dealership legislation and regulations in your state.
Cost of a Surety Bond for Your Dealership
The exact price you’ll pay for a surety bond will vary for a few reasons, such as:
- The required surety bond amount.
- Your application and financial credentials.
- If you choose to finance your bond premium.
- Your credit score.
Generally, if your financial credentials qualify you for the standard market, your premium could be calculated as just 1% of the bond amount, which would only be $500 for a standard $50,000 bond. Conversely, dealers with poor credit could pay a premium that’s a higher percentage of the bond amount. The best way to determine your exact surety bond cost is get a free price quote from a surety bond provider.
