Surety Bonds for New and Used Car Dealers
What is an Auto Dealer Bond?
Most states require individuals looking to get their motor vehicle dealer’s license to file a surety bond with the state’s Department of Motor Vehicles (DMV).
An auto dealer bond guarantees that the dealer will follow the rules and abide by industry regulations. If the rules are broken causing harm to a client, they can make a claim against the bond. These bonds are also referred to as new and used car dealer bonds and vehicle dealer bonds.
What is the cost of an auto dealer bond?
Bond costs are a percentage of the total bond amount. They vary between 1-3% for most applicants but may go as high as 5-8% for higher risk applicants. The biggest factors of bond cost include the bond amount, duration, and your financial credentials. Costs may also vary by state. However, pricing for most auto dealer bonds is fairly standard based on the above criteria.
What if I have bad credit?
You can still qualify for an auto dealer bond. Keep in mind that personal credit is one of the main factors considered when writing these bonds as your financial credentials are seen as an indicator on the likelihood that a claim will be made against a bond. Therefore, higher risk applicants may still be accepted, however, may be assessed a premium amount.
Get an Auto Dealer Bond today!
1) Fill out the form on our website – this takes 30 seconds of your time and we will get back to you with a quote in less than 24 hours (oftentimes within the hour).
2) Call us directly at 781-559-0568 – we are here to help!