The auto dealer surety bond is also known as a motor vehicle dealer bond. An auto dealer surety bond is required by the State Motor Vehicle Department to obtain a dealership license in the state in which your dealership is located.
The auto dealer bond does not protect the used car dealer from lawsuits, but it protects the consumer from fraud or misrepresentation by the car dealer. Auto Dealer Bond guarantee compliance with state laws and every state sets its own bond amount, period and expiration date.
Steps To Get Your Dealer License;
First Obtain Auto Dealer Bond.
The bond cost varies depending on your financial strength, e.g. personal credit.
To obtain a free bond quote for your auto dealer license. It takes less than 3 minutes and you will be able to lock your rate for the next 90 days.
You are required to have a two-year surety bond which is signed by the owner or all owners or partners.
Bond Amount Required: $50,000 for 2 years and expire by the end of the month, Rates Start from $275/2 years based on excellent credit history.
After you have submitted all documentation, there will be a physical inspection of your place of business. A final review of application documents and facility findings will be conducted after this inspection has taken place.
Note: A $400.00 fee will apply if an applicant has to be re-inspected.