Category Archives: Used car Dealer Bond

Get Your Motor Vehicle Dealer Bond Online

Does your business sell cars? At this time of crisis, we are here to help you get back to business. Applying for a Motor Vehicle Dealer Bond is easy, as we’ve simplified the application process for you. You can apply, get approved, and have your bond quickly, often the same day! All done remotely from your smartphone, tablet, or computer.

Most US states require a surety bond as a condition of licensing for automotive dealers. Motor vehicle dealer bonds guarantee a licensed motor vehicle dealership will comply with state regulations. Dealer bonds are required to protect consumers from fraud and other wrongful actions committed by dealerships and their employees. The bond’s exact protection will depend on state and/or local laws.


Motor vehicle dealer bond requirements can include motorcycle dealers, mobile home dealers, car dealers, and others. There could be different requirements for new and used vehicle dealers. Some states require a bond for each dealer location.

If you would like to speak with a live customer service representative to walk you through the process of applying and getting approved for a Motor Vehicle Dealer bond today, call us at 1.800.921.1008 or email Info@bfbond.com with any questions. We are here to help.

Motor Vehicle Dealer License Bonds ‘APPLY ONLINE!’

Easily apply for your Motor Vehicle Dealer License Bond or renew your existing Bond.

As part of the motor vehicle dealer licensing process, states require that prospective dealers post a surety bond called a motor vehicle dealer bond to protect the public from any inappropriate or illegal actions on behalf of the automotive dealer.

We know this can be an inconvenience, so at BFBond.com / Bernard Fleischer & Sons Inc. we make the process super easy for busy dealership owners. You can apply, upload documents, and receive your approved bond in as little as a day (depending upon your situation).

Motor Vehicle Dealer Surety Bonds in Every State

The state agency that is in charge of licensing auto dealers (The Dept. of Consumer Services in most cases) should tell you if you need a bond before you begin the application process. If you haven’t been told that you need a bond, it’s a good idea to contact the agency and make sure you don’t need one and learn more about the dealer licensing process in your state.

Generally, obtaining and filing a surety bond is a normal part of the dealer licensing process in every state.

Whether you sell 2 cars per year or 200, BFBond.com / Bernard Fleischer & Sons Inc. can help. Apply for your Motor Vehicle Dealer Bond today by clicking below.

New Jersey Motor Vehicle Dealer bonds EZ Application.

Don’t get caught with a bond expiration! Buy your bond now with our new quick, safe and efficient online application.  New Jersey Motor Vehicle Dealer bonds are coming up for renewal on 4/1/2017, Bernard Fleischer and Sons Inc./BFBond.com is a trusted provider of these bonds with very competitive rates and underwriting! Contact us today to apply or renew your bond with us. Want to learn more about Motor Vehicle Dealer Bonds? visit our blog for an informative F.A.Q. here, visit our website at www.BFBond.com, call us at 800.921.1008 or fill out our EZ application.

Motor Vehicle Dealer Bonds F.A.Q.

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Q. What Is a Motor Vehicle Dealer Bond?
A. It is a guarantee that motor vehicle dealers will follow the regulations of their state, and is usually required to obtain a dealer license.

Q. How much does a motor vehicle dealer bond cost?
A. The cost is a percentage of the bond amount. You can call us at 800.921.1008 for a free estimate. If you require an exact price, please complete a motor vehicle dealer bond application and receive the free bond quote.

Q. Can I get a motor vehicle dealer bond with bad credit?
Yes. We have great high risk markets and can get you approved for a new & used motor vehicle dealer bond regardless of bad credit. To learn more, visit our bad credit bond general information page and complete the EZ application.

Q. How to Get a Bad Credit Motor Vehicle Dealer Surety Bond.
A. We have access to many exclusive programs, allowing those with bad credit to get approved. However, the price will be considerably higher compared to standard markets.

Q. How long does the application take?
A. We approve motor vehicle dealer bonds instantly online. The application process takes just minutes. You can get a no obligation online quote on our website at any time.

Q. My friend is an auto dealer. Will my motor vehicle dealer bond cost the same as theirs?
A. Possibly, but the rates vary based on the estimated risk and the ability to repay claims. As a result, your pricing could be lower or higher depending on your risk compared to the other dealer.

Q. How does a motor vehicle dealer bond protect my dealership?
A. It doesn’t. Motor vehicle dealer bonds protect the public from auto dealer fraud. A claim on your bond must be paid back by the dealer to the bonding company. You need to obtain insurance to protect your dealership.
Q. Do I need a motor vehicle dealer bond for selling mobile homes?
A. Very likely, many states require you to obtain motor vehicle dealer bonds to sell various types of mobile homes, including RV’s, manufactured homes and modular homes. However, every state has its own requirements.

Q. Do I need new AND used motor vehicle dealer bonds for selling new & used vehicles?
A. Usually no, one motor vehicle dealer surety bond generally covers both new and used vehicle dealers. However, motor vehicle dealer bond requirements vary by state.

Q. How is a motor vehicle dealer bond different from car dealer insurance?
A. Bonds are a form of credit to motor vehicle dealers and assurance for the public. They guarantee that a dealer will not break the state laws. Should they break laws and cause a claim on the bond, the motor vehicle dealer is responsible for any damages. Motor vehicle dealer insurance protects the dealer from loss, not the public.

Q. How much does a Motor Vehicle Dealer bond cost?
A. Costs vary by bond size, applicant, bond form, state and the bond agency chosen. BF Bond only reviews the personal credit of the business owners. Nearly all other bond agencies will review business and personal financials, experience, bank balances and years in operation, in addition to personal credit. Visit our website and get an estimate, or apply to get approved instantly online.

Get the Motor Vehicle Dealer Bond You Require.
A motor vehicle dealer bond allows you to sell vehicles to the public and other dealers/wholesalers. A wholesale dealer bond only allows you to sell vehicles to other dealers and wholesalers.
A motor vehicle dealer bond applies to retail and wholesale dealers, and only one bond is needed to sell new and used vehicles. Whichever type you need, you can conveniently apply online for all motor vehicle dealer bonds.

For more information contact Jose Ward at 800-925-1008, email JW@bfbond.com or visit us at www.BFBond.com

Glossary of Surety & Fidelity Bonds and Terms

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GLOSSARY OF SURETY BOND TERMS

SURETY BOND: An agreement providing for monetary compensation should there be a failure to perform specified acts within a stated period. ACCOUNTING METHODS: For construction or building contractors, the two methods of accounting, both realistic and preferred by surety companies, are (a) the Completed Contract method, and (b) the Percentage-of-Completion method.

ADMINISTRATOR: A fiduciary appointed by a probate court to manage or distribute the assets of an estate of a person who died without leaving a will.

ADMINISTRATOR CUM TESTAMENTO ANNEXO OR WITH WILL ANNEXED: One appointed by a probate court to administer the estate where the deceased left a will but failed to name an executor or the one named as executor fails to qualify.

ADMINISTRATOR, CUM TESTAMENTO ANNEXO, DE BONIS NON: One appointed by a probate court to succeed an executor who has died, resigned, or been discharged before the administration is complete.

ADMINISTRATOR DE BONIS NON: One appointed by a probate court to succeed an administrator who has died, resigned or been discharged before the administration is complete.

ADMINISTRATOR PENDENTELITE: One appointed to preserve the assets of a decedent’s estate where the will is contested or other circumstances occur which delay qualification of an executor if there is a will or the appointment of an administrator if there is no will.

ADVANCE PAYMENT BOND: Guarantees repayment or liquidation by the principal of moneys advanced in connection with a construction or supply bond or other type of contract.

AGGREGATE LIABILITY CLAUSE: A clause in a third party license bond which limits the surety’s liability to the bond penalty regardless of the number of claims made against the bond.

ALCOHOL BOND: A general term describing a bond given in compliance with federal or state laws or regulations governing the sale, manufacture or warehousing of alcohol for beverage or non-beverage purposes. Where the alcohol is intended for beverage purposes, the bond is frequently referred to as a liquor bond or intoxicating liquor bond.

ANNUAL BOND: One written to cover contractors or bids awarded or submitted during an annual period or for a period terminating within a fiscal year.

APPEAL BOND: One filed in court by a party against whom a judgment has been rendered, in order to stay execution of the judgment pending appeal to a higher court, in hope of reversing the judgment. The bond guarantees that the judgment will be paid if the appeal fails.

APPLICATION: A questionnaire which must be completed, when required, by an applicant for a bond. It gives the company information about the applicant and contains his/her agreement to indemnify the surety in the event of loss, as well as his/her promise to pay the premium.

ASSETS: The items on a balance sheet showing the book value of property owned. For a surety this could include all funds, property, securities, etc., or the property of an estate, whether real or personal.

ATTACHMENT BOND – PLAINTIFF’S: Attachment is taking a defendant’s property into custody by a summary process from the court in advance of the trial on the merits of the case. It is taken as security for the payment of any judgment that may be recovered by the plaintiff in the action. Attachment is allowed only where the plaintiff alleges a statutory ground for it (e.g. defendant is a nonresident or is about to leave the jurisdiction or remove or conceal his/her property). The bond, which the plaintiff is required to furnish, provides for indemnity to the defendant against loss or damage in case it is finally decided that a statutory ground did not exist or the plaintiff fails to recover a judgment against the defendant.

ATTACHMENT – DEFENDANT’S BOND TO DISCHARGE OR RELEASE: When an attachment has been issued, a defendant may discharge the attachment by giving the bond conditioned for the payment of any judgment that may be rendered against him/her in the action, with interest and costs.

BID BOND: Given by a bidder for a supply or construction contract to guarantee that the bidder, if awarded the contract within the time stipulated, will enter into the contract and furnish the prescribed performance bond. Default will ordinarily result in liability for the difference between the amount of the principal’s bid and the bid of the next low bidder who can qualify for the contract. In any event, however, the liability of the surety is limited to the bid bond penalty.

BLANKET FIDELITY BOND: A bond which covers loss of money, merchandise, or other property owned by the insured or in which he/she has a pecuniary interest when such loss is due to dishonesty of his/her employees. All employees are covered under the bond unless specifically excluded.

BLANKET POSITION BOND: A blanket fidelity bond which covers all of the insured’s employees for a uniform amount on each so that if loss is caused by dishonest or fraudulent acts of two or more employees in collusion, recovery up to the amount of the bond may be made on each identifiable participating employee.

BLUE SKY BONDS: Many states control the sale of securities under regulations known as Blue Sky Laws. These laws are designed to prohibit the sale of worthless securities. The bonds required of security dealers indemnify purchasers against loss caused by false representations. The term Blue Sky Law originated when a court complained that certain stock was backed only by the blue sky.

BOND: Generally speaking, it is an agreement whereby one party, called the surety, obligates itself to a second party, called the obligee, to answer for the default of a third party, called the principal.

CANCELLATION CLAUSE: A clause in a bond which permits the surety to terminate its future liability by serving written notice upon the obligee.

CLAIMANT’S BOND: In cases where, pending final decision on the merits, property is released to one not a party to the litigation, who claims to be the owner thereof. The claimant may be required to give bond conditioned for the return or redelivery of the property if ordered to do so by the court.

CO-FIDUCIARY: One who serves as a fiduciary jointly with another, such as a co-administrator, co-executor, co-guardian, etc.

COLLATERAL: Anything of value pledged with the surety to secure it against loss by reason of default of the principal.

COLLUSIVE LOSS: A loss caused by two or more dishonest employees acting in consort.

COMMERCIAL BLANKET BOND: A blanket fidelity bond issued in a stated amount on all regular employees of commercial establishments covering against loss from employees’ dishonest acts.

COMMISSIONER OF INSURANCE: The official charged with enforcement of the laws pertaining to insurance in his/her state. In some jurisdictions this official is called the superintendent or director of insurance.

COMMITTEE: One appointed by a court to manage the estate of a person who has been declared incompetent. Also known as conservator or a curator.

COMPLETION BOND: One covering performance of a construction project that names as an obligee a lender or similar party in a position to invoke the performance features of the bond for its benefit without an obligation to provide funds or to complete.

CONDITION: The technical name of one of the four parts of a bond. The condition is not a qualification of coverage as with an insurance policy, but is the essence of the guarantee.

CONSERVATOR: A person, official, or institution designated to take over and protect the interests of an incompetent.

CONTINUITY CLAUSE: The clause in a bond, or rider attached to a bond, under which that bond, subject to its terms, assumes liability for any loss due to acts which occurred while a prior bond was in force, but which were not discovered until after the expiration of the discovery period of the prior bond.

CONTRACT BOND: A guarantee of the faithful performance of a construction contract and usually the payment of all labor and material bills related to it. In those situations where two bonds are required – one to cover performance and the other to cover payment of labor and materials – the former is known as a performance bond, and the latter as a payment bond.

CONTRACT PRICE: The whole sum of money which passes from an owner to contractor when final settlement is made between the two under the contract, the basis for the premium charge on most types of construction and supply contract bonds.

CONVERSION: The wrongful taking of property entrusted to one’s care.

CORPORATE SURETY: A corporation licensed under various insurance laws, which under its charter, has legal power to act as surety for others.

COST BOND: One required of a litigant conditioned for the payment of the costs of the litigation, such as fees of the court clerk, sheriff, etc.

CO-SURETY: One or two or more surety companies directly participating in a bond. Their obligation to the owner is joint and several, but often a limit of liability for each surety is stated as between themselves.

COUNTERSIGNATURE: A signature of a licensed domiciled agent or representative required by the laws of some states to validate the bond.

COURT BONDS: A general term embracing all bonds and undertakings required of participants in a lawsuit permitting them to pursue certain remedies in the courts.

CUMULATIVE LIABILITY: The aggregate amount of two or more bonds in behalf of the same principal (or in the case of fidelity or blanket bonds, in favor of the same obligee) filed in succession, where the succeeding bond(s) does not extinguish the liability under the prior bond(s) or the liability of the surety is the penalty of the bond times the number of years in force.

CUSTOMS BONDS: These bonds guarantee the payment of import duties and taxes, and compliance with regulations governing the entry of merchandise from foreign countries into the United States.

DEDUCTIBLE: An amount which is to be “deducted” from any loss and which the insured agrees to bear personally.

DEPOSITORY BOND: This guarantees repayment of moneys deposited with a bank in the event of the failure or insolvency of the bank. While this is now a negligible line of surety business, it was once a large one. The Federal Deposit Insurance Corporation (FDIC) now guarantees the payment of bank deposits.

DEPOSITORY LIABILITY: A public official is liable for public funds which he/she deposits in a bank and cannot pay over because of insolvency or failure of the bank. In many states, statutes provide for the designation of depositories for public funds and for the furnishing of collateral security by such depositories. Such laws, if interpreted strictly, usually exempt the public official and his/her surety from liability for loss through failure of any of the designated and qualified depositories.

DEPOSIT PREMIUM: The advance premium required by a surety company on those forms of bonds which are subject to premium adjustment.

DISCOVERY BOND: A form of fidelity bond which covers against dishonest or fraudulent acts of employees, provided such loss is discovered any time after the bond becomes effective and before it is terminated, irrespective of when the dishonest or fraudulent acts were committed.

DISCOVERY PERIOD: Under certain bonds and policies, provision is made to give the insured a period of time after the cancellation of a contract in which to discover whether a loss was sustained that would have been recoverable had the contract remained in force. This period usually varies from six months to three years. The period may be determined by statute; in certain bonds, it is of indefinite duration because of statutory requirement.

DISHONESTY INSURANCE: A generic term describing fidelity bond coverage guaranteeing against loss caused by dishonest officers or employees of a commercial firm or by dishonest public officials or employees.

EARNED PREMIUM: The premium amount which would compensate the surety for the protection furnished for the expired portion of the term of the bond.

EFFECTIVE DATE: The date from which bond coverage is provided.

ENDORSEMENT: A form attached to the bond to add to, alter, or vary its provisions. Sometimes called a rider.

EXCESS BOND: Additional coverage over a primary bond protecting against certain perils (usually dishonesty) applying only to loss above a specified amount.

EXCLUSION: A provision in a bond referring to perils or property not covered.

EXECUTOR: One named in a will to distribute and settle the estate of the testator.

EXPENSE RATIO: The percentage of the premium used to pay all costs of acquiring, writing, and servicing the bond.

EXPERIENCE: The loss record of either an individual or a class of coverage.

EXPERIENCE RATING: A plan available for fidelity bonds whereby surcharges or discounts are applied to premiums developed by those risks based on the actual past experience of such risks.

EXPIRATION: The date upon which a bond will cease to provide coverage unless previously cancelled.

FAITHFUL PERFORMANCE BOND: A type of bond where the coverage goes beyond protection against loss due to dishonesty or fraudulent acts of the principal; it provides protection to the named insured against loss by reason of the failure of the persons covered hereunder to faithfully perform their duties as prescribed by law or by the constitution and bylaws of the insured or their equivalent.

FIDELITY BOND: A bond which will indemnify an insured for loss caused by a dishonest act or fraudulent act of an employee covered under the bond. Also known as dishonesty insurance.

FIDUCIARY: A person who occupies a position of trust, particularly one who manages the affairs or funds of another.

FIDUCIARY BOND: Required of administrators, executors, guardians, committees, etc., guaranteeing faithful performance of duty in accordance with the laws applicable to the trust. Frequently called a probate bond because the bond is customarily filed in a probate court.

FINANCIAL GUARANTEE BOND: A bond that guarantees payment of a sum of money whether or not the exact amount is known or stated. Common types are: court bonds (appeal, etc.), lease bonds which guarantee payment of rent, etc.

FINANCIAL RESPONSIBILITY LAW: A statute requiring motorists to furnish, either before or after an accident, evidence of ability to pay damages. Such evidence may be furnished by a surety bond.

FINANCIAL STATEMENT: A balance sheet which the surety requires of an applicant for a bond (particularly a contractor), setting forth his/her financial position as of a given time or period.

FIXED PENALTY BOND: A bond for which the amount is expressed in terms of a stated and definite sum of money.

FORFEITURE BOND: A bond where the full penalty is payable upon breach of the condition regardless of the amount of loss or damage.

GARNISHMENT – BOND TO DISCHARGE OR RELEASE: When money or property belonging to a defendant has been attached while in the hands of a third party, the proceeding is called a garnishment and the third party is called the garnishee. The bond is similar to a release of attachment bond.

GROSS LOSS: The amount of loss before giving effect to reinsurance. Usually reported inclusive of claim expenses. It may also be considered as the loss without allowance for collection of salvage.

GUARDIAN AD LITEM: One appointed to preserve the assets of the estate of a minor during a litigation which delays the appointment of a general guardian.

GUARDIAN OR GENERAL GUARDIAN: A fiduciary appointed by the court to administer the estate of a minor.

HAZARD: A term applied to certain conditions which may create or increase the probability of a loss, because of a given peril.

HOLD-OVER PUBLIC OFFICIALS: Those who are elected or appointed to succeed themselves in office or who continue beyond the limits of their terms until their successors are appointed or elected.

IMMIGRANTS BOND: A class of federal bonds covering aliens who enter the United States legally.

INCOME TAX BONDS: These are given to guarantee payment of federal income taxes due or claimed to be due. They are direct financial guarantees and collateral usually is required.

INDEMNIFY: To compensate for actual direct loss sustained under a bond. There can be no recovery on a bond until the obligee has actually suffered a loss.

INDEMNITOR: One who enters into an agreement with a surety company to hold the surety harmless from any loss or expense it may sustain or incur on a bond issued on behalf of another.

INDEMNITY BOND: A general term describing any bond which protects the obligee against direct loss which may arise as a result of failure on the part of a principal to perform.

INDEMNITY TO SHERIFF OR MARSHAL: A sheriff or marshal, in the execution of the process of the courts, may incur liability for damage to a third party through an act or acts which turn out to be wrongful. Either official when requested to take some particular action, may require a bond of the party making the request. The bond covers the liability of the sheriff or marshal in that connection.

INDIVIDUAL FIDELITY BOND: A bond covering a single employee for a specified amount to protect the employer in the event of the employee’s dishonesty.

INJUNCTION – PLAINTIFF’S BOND TO SECURE: An injunction is a judicial process whereby the defendant is required to do or refrain from performing a particular act. An order granting an injunction may be on the condition that the plaintiff furnish a bond to indemnify the defendant against loss in case it is decided that the injunction should not have been granted.

INJUNCTION – DEFENDANT’S BOND TO DISSOLVE: When an injunction has been issued, the court may order the injunction dissolved upon the giving of a bond. The bond guarantees payment the plaintiff may sustain as a result of the performance of the act or acts originally enjoined. It is then the privilege of the defendant to proceed as if the injunction had never been issued.

INSURING CLAUSE: That part of a bond or policy which recites the agreement of the insurer to protect the insured against some form of loss or damage. Also known as an insuring agreement.

INTESTATE: One who dies without a legal will.

INTERNAL REVENUE BONDS: A class of federal bonds which guarantee compliance of producers of distilled spirits, tobacco, etc., with applicable laws and regulations, as well as the payment of taxes.

JOINT CONTROL: An arrangement by written agreement between a fiduciary and a surety, acknowledged by the bank in which funds are deposited or securities lodged so that the funds or securities are controlled by both parties; usually all checks are required to be signed by the fiduciary and countersigned by an authorized representative of the surety and access to the securities can be had only in the presence of an authorized representative of the surety.

JOINT VENTURE: A joining of the financial resources and skills of several contractors to undertake contracts of construction too large for their individual and separate abilities.

JUDICIAL BOND: A general term applied to all bonds filed in court.

LABOR AND MATERIAL BOND: A bond given by a contractor to guarantee payment for the labor and material used in the work which he/she is obligated to perform under the contract. This liability may be contained in the performance bond, in which case a separate labor and material bond (payment bond) is not given.

LIABILITY: This is a broad term denoting any legally enforceable obligation.

LIBEL – BOND TO DISCHARGE OR RELEASE: When a warrant for the seizure of a ship has been issued, the marshal is required to stay execution of the process, or discharge the ship if process has been levied, on receiving from the owner of the ship a bond or stipulation conditioned to comply with the decree of court in the action.

LICENSE BOND: Used interchangeably with the term “permit bond” to describe bonds required by state law, municipal ordinance or regulation, to be filed prior to the granting of a license to engage in a particular business or a permit to exercise a particular privilege. Such bonds provide payment to the obligee for loss or damage resulting from violations by the licensee of the duties and obligations imposed upon him/her.

LIEN: A charge upon real or personal property for the satisfaction of a debt.

LIMIT OF LIABILITY: The maximum amount which a surety company will pay in case of loss. Sometimes called the bond penalty.

LOSS RATIO: The percentage of losses to premiums.

LOST INSTRUMENT BOND: A bond given by the owner of a valuable security (stock, bond, promissory note, certified check, etc.) which is alleged to have been lost or destroyed. It protects the issuer of the security against loss which may result from the reinsurance of a duplicate or, in some instances, payment of cash value thereof.

MAINTENANCE BOND: The normal coverage provided by a maintenance bond is a guarantee against defective workmanship or materials. However, maintenance bonds sometimes incorporate an obligation guaranteeing “efficient or successful operation” or other obligations of like intent and purpose.

MECHANICS LIEN – BOND TO DISCHARGE: A lien against real estate may be filed for an amount claimed to be due for labor or materials furnished for the construction of a building or other improvement upon the property. Pending final determination of the owner’s liability, the owner may discharge the lien by giving bond conditioned for the payment of any amount that may be found due to claimant with interest and costs.

MINIMUM PREMIUM: The least amount a surety company may charge for a particular bond for a designated period.

MISCELLANEOUS INDEMNITY BONDS: Bonds which do not fit any of the well recognized divisions or subdivisions.

MORAL HAZARD: The possibility of loss caused or accentuated by dishonesty or carelessness of the insured or others.

NAME SCHEDULE BOND: A fidelity bond which covers the employees listed in a schedule, each for a specified amount.

OBLIGEE: The party in whose favor a bond runs; the party protected by the bond against loss. An obligee may be a person, firm, corporation, government, or an agency of a government.

OBLIGOR: Sometimes called the principal, or one bound by the obligation. Under a surety bond, both principal and surety are in a sense, obligors, since the surety must answer if the principal defaults.

OPEN DEFAULT BOND: Where a judgment has been entered by default, the defendant may, under certain circumstances, have the case reopened and tried on its merits, upon giving a bond conditioned for the payment of any judgment that may be rendered in the action.

OPEN PENALTY BOND: A surety bond written without a limit on the liability of the principal or surety. Under the regulations of the federal government and the laws of many of the states, surety companies are not permitted to obligate themselves on any one bond for an amount greater than a specified percentage of their capital and surplus (qualifying power).

OUTSIDE EMPLOYEE: An employee, such as a salesmen, messenger, etc. whose duties keep him/her away from his/her headquarters.

PENAL SUM: The maximum amount for which a surety company may normally be held liable under the bond. Also called the bond penalty. See also limit of liability.

PERFORMANCE BOND: A bond which guarantees faithful performance of the terms of a written contractor for furnishing supplies or for construction of all kinds. Performance bonds frequently incorporate payment bond (labor and materials) and maintenance bond liability.

PERSONAL SURETY: An individual who acts as surety for another, who may or may not charge a fee for his/her guarantee, and usually is not regulated by any government agency, such as is the corporate surety.

PETITIONING CREDITORS’ BOND: When a petition is filed to have a person adjudged a bankrupt, an application is made to have a receiver or a marshal take charge of the property of the alleged bankrupt prior to the adjudication, the petitioners are required to give bond to indemnify the alleged bankrupt for such costs, counsel fees, expenses, and damages as may be occasioned by such seizure, in case the petition be dismissed or withdrawn by the petitioners.

POSITION SCHEDULE BOND: A fidelity bond which covers employees who may, while the bond is in force, occupy and perform the duties of the positions scheduled in the bond, each position being covered for a specific amount.

POWER OF ATTORNEY: The authority given one person or corporation to act for and obligate another, to the extent set forth in the instrument creating the power.

PREMIUM: The fee to be paid for the bond. The cost of the bond.

PRINCIPAL: The one who is primarily bound on a bond furnished by a surety company.

PROBATE BOND: One that guarantees an honest accounting and faithful performance of duties by administrators, trustees, guardians, executors, and other fiduciaries. So called because such bonds are customarily filed in a probate court. Also known as fiduciary bond.

PRO RATE CANCELLATION: Cancellation of a bond when the portion of the premium returned is the full proportionate part due for the unexpired period. Distinguished from short rate cancellation.

PUBLIC OFFICIAL BOND: A bond that guarantees faithful performance of duty of a public official in a position of trust; also provides for an honest accounting of all public funds handled by him/her. Such bond is given to comply with a statute and, therefore, carries whatever liability the statute imposes.

QUALIFYING POWER: The largest net amount of risk which may be carried by a surety company on a bond.

RATE: The cost of a unit of bond coverage. Such unit is usually in the denomination of $1,000.

RATE MANUAL: A book published by the Surety Association of America or by individual surety companies giving rates and classifications for bonds.

RECITAL: That portion of a surety bond usually commencing with the word “Whereas” which describes the transaction for which the bond is given. In the case of a guarantee of a contract it generally incorporates the contract by reference.

RECOVERY: Reimbursement received by a surety from a reinsurer, or by a subrogation, or from salvage following a loss.

REFUNDING BOND – RATE LITIGATION: This term is applicable to any bond conditioned for future return, if ordered, of money which the principal was allowed to charge and retain pending final determination or decision in a contested matter.

REMOVAL BOND: Where a case originally brought in a state court is removed to the federal court, the defendant is required to give bond for the payment of costs in federal court if the case is found to have been improperly removed. Similar bonds may be required on removal of a case from one state court to another.

REPLEVIN – PLAINTIFF’S BOND TO SECURE: Replevin is an action to recover possession of specific articles of personal property. The replevin bond, which the plaintiff is required to furnish, is conditioned for the return of the property, if return is ordered, and for the payment of all costs and damages adjudged to the defendant.

REPLEVIN – DEFENDANT’S BOND TO RECOVER PROPERTY REPLEVIED: Where personal property has been replevied, the defendant may, by the furnishing of a bond, regain possession of the property, pending final decision on the merits. The bond is conditioned for redelivery of property to the plaintiff, if ordered to do so, or otherwise to comply with a court order or judgment.

RETROACTIVE RESTORATION: A provision in a bond whereby, after payment of a loss, the original amount of coverage is automatically restored to take care of undiscovered losses as well as future losses.

RIDER: A printed form of special provision added to a bond. Sometimes called an endorsement.

SALVAGE: That which is recovered from the principal or an indemnitor to offset in whole or in part the loss and expense incurred by a surety in satisfying obligations it has sustained under a bond.

SCHEDULE BOND: One that covers loss resulting from dishonest or fraudulent acts of employees who are listed either by name or by positions scheduled in the bond.

SEQUESTRATION BOND: Substantially the same as Attachment Bond – Plaintiff’s.

SHORT RATE – SHORT RATE CANCELLATION: The charge required for bonds taken for less than a year, and in some cases, the earned premium for bonds cancelled by the insured before the end of the term of the bond; i.e., the earned premium plus an expense charge.

SHORT TERM BONDS: Those covering fiduciaries whose duties are to collect the assets of the decedent, pay the debts, and distribute the remainder according to law. These bonds are usually less than two years duration.

STATUTORY BOND: A term generally used describing a bond given in compliance with a statute. Such a bond must carry whatever liability the statute imposes on the principal and the surety.

STAY OF EXECUTION: A bond to stay or suspend execution on a judgment. It guarantees the payment of the judgment upon termination of the stay.

SUBCONTRACT BOND: One required by a general contractor of a subcontractor, guaranteeing that the subcontractor will faithfully perform the subcontract in accordance with its terms and will pay for labor and material incurred in the prosecution of the subcontracted work.

SUBDIVISION BOND: Many municipalities provide by ordinance that a developer who undertakes to lay out a housing or industrial subdivision shall give bond with surety to guarantee that, within a specified time, improvements on the property, such as streets, sidewalks, curbs, gutters, and sewers will be constructed.

SUBROGATION: The legal or equitable process by which a surety company obtains from a third party recovery of an amount paid out by the surety to the obligee or a claimant under the bond.

SUPERSEDEAS BOND: This is a bond to supersede or take the place of a judgment, and coverage is substantially the same as under a defendant’s appeal bond.

SUPERSEDED SURETYSHIP: When a company writes a bond to take the place of another bond which is cancelled on the effective date of the new bond, a rider is generally attached (unless the bond itself contains a superseded suretyship provision) agreeing to pay losses that would have been recoverable under the first bond except for the expiration of the discovery period.

SUPPLY BOND: A bond which guarantees faithful performance of a contract to furnish supplies or materials. In the event of a default by the supplier, the surety must indemnify the purchaser of the supplies against the loss occasioned thereby.

SURETY BOND: An agreement providing for monetary compensation should there be a failure to perform specified acts within a stated period.

SURETYSHIP: Refers to obligations to pay the debts of, or answer for, the default of another. It assumes a legal relationship based upon the contract in which one person (the surety) undertakes to answer to another (the obligee) for the debt, default, or miscarriage of a third person (the principal) resulting from the third person’s failure to pay or perform as required by an underlying contract.

TERM: A period of time for which a bond is issued.

TESTATOR: One who makes a will.

THIRD PARTY BOND: A license bond which gives parties other than the named obligee a right of action in their own name to recover loss or damage resulting from a breach by the licensee of his/her obligations under the law, ordinance or regulations under which the bond is required.

TREASURY LIMITS: These are qualifying limits imposed upon surety companies by the United States Treasury Department.

TRUSTEE: One named in a will or deed of trust to manage property for the benefit of another.

UNDERWRITER: An officer or employee of a surety company who has the responsibility for accepting risks.

PLEASE NOTE:

This document is provided for informational purposes ONLY and is not intended to serve as legal advice and is no substitute for consulting legal counsel.

Motor Vehicle Dealer Bonds

Motor Vehicle Dealer Bonds

Most of the time, a surety bond’s purpose is to protect a consumer against damages due to fraud, defaulting on a contract, or other negative and wrongful behaviors on the part of a business providing a service or product. In some cases, a business opts to get a surety bond to prove that they are committed to ethical behavior; however, most of the time a bond is required by a government agency in order for a business to get a license to provide those services or products.

One example of an industry that is required by law to have surety bonds in place in order for a business to obtain a license is the motor vehicle dealership industry.

A motor vehicle dealer bond, sometimes also called a DMV bond, used car dealer bond, or auto dealer bond, guarantees that the motor vehicle dealer complies with all federal laws, state laws, local laws, and tax and judgment guidelines that relate to motor vehicles. Motor Vehicle Dealer Bond

The bond also ensures that if the dealer or any of its employees commits fraud or other actions that are wrongful to the consumer, the consumer is protected from any consequence arising from those actions.

In addition to the protection that a consumer receives from a motor vehicle dealer bond, they also find peace of mind knowing that a dealership has a surety bond in place. That surety bond means that a third party bonding company has reviewed that dealership’s financial information and endorsed them as a financially stable company. And in the event that something does take a negative turn during the transaction between consumer & dealership, the bonding company can step in to make the situation better for the consumer.

Typically, dealers obtain their motor vehicle dealer bond by applying with a surety bond company. As part of the application process, the dealer provides financial documentation and agrees to submit to a credit check, so that the bond company can be sure that they are financially stable, can pay for bond premiums and cost, and are a reasonable dealership to provide a surety bond to.

A poor credit score on the record of the dealer will make getting a surety bond more difficult with many companies; however, at BFBOND.com many of our motor vehicle dealer bonds have special programs available to applicants with poor credit scores.

We’ve helped hundreds of dealerships across the nation get their surety bond quickly and without hassle, and we’d love to help you with your surety bond requirements. Call us at 800-925-1008 or apply online today.

State Requirements For Motor Vehicle Dealerships

Please note that this information is not legal advice or counsel, and consulting with your attorney as to the specific legal requirements in your state is recommended.

 ALABAMA:
    Alabama New Motor Vehicle Dealer Bond
    Alabama Used Motor Vehicle Dealer Bond
    Alabama Motor Vehicle Wholesale Dealer Bond
    Alabama Designated Agent Bond
    Alabama Designated Agent Bond
    Alabama Motor Vehicle Rebuilder / Reconditioner Bond
    Alabama Automotive Dismantler and Parts Recycler Bond
 ALASKA:
    Alaska Motor Vehicle Dealer Bond
    Alaska Motor Vehicle Buyers Agent Bond
    Alaska Motorcycle Dealer Bond
 ARIZONA:
    Arizona New Motor Vehicle Dealer Bond
    Arizona Used Motor Vehicle Dealer Bond
    Arizona Motor Vehicle Broker Bond
    Arizona Motor Vehicle Wholesale Auto Auction Bond
    Arizona Motor Vehicle Public Consignment Auction Bond
    Arizona Motor Vehicle Wholesale Dealer Bond
    Arizona Motor Vehicle Title Service Company Bond
    Arizona Motor Vehicle Automotive Recycler Bond
 ARKANSAS:
    Arkansas Motor Vehicle Dealer Bond – $25,000
    Arkansas New Motor Vehicle Dealer Bond – $50,000
    Arkansas Used Motor Vehicle Dealer Bond – $50,000
    Arkansas Motorcycle, ATV, Lessor or Scooter Dealer Bond
 CALIFORNIA:
    California Motor Vehicle Dealer Bond
    California Motor Vehicle Performance Bond
    California Motor Vehicle Wholesale-Only Dealer (Less Than 25 Vehicles) Bond
    California Motor Vehicle Commercial Requestor Account Bond
    California Motor Vehicle Remanufacturer Bond
    California Motor Vehicle Verifier Bond
    California Motorcycle Dealer Bond
    California Motorcycle Lessor – Retailer Bond
    California Motorcycle Wholesale Dealer Bond
    California All Terrain vehicle Dealer Bond
    California DMV Business Partner Automation Bond – $10,000
    California DMV Business Partner Automation Bond – $50,000
    California Vehicle Registration Service Bond – $5,000
    California Vehicle Registration Service Bond – $25,000
 COLORADO:
    Colorado New Motor Vehicle Dealer Bond
    Colorado Used Motor Vehicle Dealer Bond
    Colorado Motor Vehicle Wholesaler Bond
    Colorado Motor Vehicle Wholesale Auction Dealer Bond
    Colorado Motor Vehicle Reistration Service Bond
    Colorado Motor Vehicle Buyer Agent Bond
    Colorado Motor Vehicle Salesperson Bond
    Colorado Motor Vehicle Wrecker Bond
    Colorado New Powersports Vehicle Dealer Bond
    Colorado Used Powersports Vehicle Dealer Bond
    Colorado Powersports Vehicle Salesperson Bond
 CONNECTICUT:
    Connecticut New Motor Vehicle Dealer Bond
    Connecticut Used Motor Vehicle Dealer Bond
    Connecticut Motor Vehicle Leasing or Rental Company Bond
    Connecticut Motor Vehicle Registration Issuance Bond
    Connecticut Motor Vehicle Limited Repairer Bond
    Connecticut Motor Vehicle Limited Repairer Bond
 DELAWARE:
    Delaware Motor Vehicle Dealer Bond
    Delaware Motor Vehicle Sales Finance Company Bond
 FLORIDA:
    Florida New Motor Vehicle Dealer Bond
    Florida Used Motor Vehicle Dealer Bond
    Florida Motor Vehicle Wholesale Dealer Bond
    Florida Motor Vehicle Auction Dealer Bond
    Florida Motor Vehicle Salvage Dealer Bond
    Florida Motor Vehicle Service Facility Bond
 GEORGIA:
    Georgia New Motor Vehicle Dealer Bond
    Georgia Used Motor Vehicle Dealer Bond
    Georgia Used Parts Dealer Bond
    Georgia Motor Vehicle Tag Service Company Bond
 HAWAII:
    Hawaii New Motor Vehicle Dealer Bond – $50,000
    Hawaii New Motor Vehicle Dealer Bond – $200,000
    Hawaii Used Motor Vehicle Dealer Bond – $25,000
    Hawaii Used Motor Vehicle Dealer Bond – $100,000
    Hawaii Motorcycle and Scooter Dealer Bond
    Hawaii Motor Vehicle Salvage Repair Bond
 IDAHO:
    Idaho New Motor Vehicle Dealer Bond
    Idaho Motorcycle Dealer Bond
    Idaho ATV, Truck Camper and Snow Machine Dealer Bond
 ILLINOIS:
    Illinois Motor Vehicle Dealer Bond
    Illinois Motor Vehicle Second Installment Bond
    Illinois Motor Vehicle Broker Bond
 INDIANA:
    Indiana Motor Vehicle Dealer Bond
    Indiana Motor Vehicle Wholesale Dealer Bond
    Indiana Motor Vehicle Transfer Dealer Bond
    Indiana Automobile Auctioneer Bond
    Indiana Motor Vehicle Merchandising Bond
    Indiana Motor Vehicle Distributor Bond
    Indiana Motor Vehicle Distributor Branch Bond
    Indiana Motor Vehicle Distributor Representative Bond
    Indiana Motor Vehicle Factory Representative Bond
    Indiana Motor Vehicle Manufacturer Bond
    Indiana Motor Research and Development Bond
 IOWA:
    Iowa Motor Vehicle Dealer Bond
 KANSAS:
    Kansas Motor Vehicle Dealer Bond
 KENTUCKY:
    Kentucky Motor Vehicle Dealer Bond
 LOUISIANA:
    Louisiana New Motor Vehicle Dealer Bond
    Louisiana Used Motor Vehicle Dealer Bond
    Louisiana Recreational Vehicle Dealer Bond
    Louisiana Motor Vehicle Inspection Station Bond
 MAINE:
    Maine Motor Vehicle Dealer Bond
 MARYLAND:
    Maryland New Motor Vehicle Dealer Bond
    Maryland Used Motor Vehicle Dealer Bond
    Maryland Wholesale Motor Vehicle Dealer Bond
    Maryland Motor Vehicle Information Requestor / Vehicle Records Bond
    Maryland Automobile Insurance Funds Producer Bond
    Maryland Title Service Bond
    Maryland Title Insurance Settlement Agent Bond
 MASSACHUSETTS:
    Massachusetts Motor Vehicle Dealer Bond
    Massachusetts Motor Vehicle Secondhand Dealer Bond
    Massachusetts Auto Body Shop Bond
 MICHIGAN:
    Michigan New Motor Vehicle Dealer Bond
    Michigan Used Motor Vehicle Dealer Bond
    Michigan Motor Vehicle Broker Bond
 MINNESOTA:
    Minnesota New Motor Vehicle Dealer Bond
    Minnesota Used Motor Vehicle Dealer Bond
    Minnesota Motor Vehicle Lessor Bond
    Minnesota Motor Vehicle Broker Bond
    Minnesota Motor Vehicle Wholesale Dealer Bond
    Minnesota Motor Vehicle Auction Bond
    Minnesota Motor Vehicle Parts and Scrap Metal Bond
    Minnesota Boat Dealer Bond
 MISSISSIPPI:
    Mississippi Motor Vehicle Dealer Bond
    Mississippi Motor Vehicle Specialty Dealer Bond
    Mississippi Motor Vehicle Designated Agent Bond – $5,000
    Mississippi Motor Vehicle Designated Agent Bond – $15,000
    Mississippi Motor Vehicle Auctioneer Bond
    Mississippi Motor Vehicle Auctioneer Bond
    Mississippi Motor Vehicle Bus & RV Dealer Bond
    Mississippi Motorcycle Dealer Bond
    Mississippi Used Auto and Parts Bond
    Mississippi Inspection Station Bond
 MISSOURI:
    Missouri Motor Vehicle Dealer Bond
    Missouri Motor Vehicle Service Contract Provider Bond
 MONTANA:
    Montana Motor Vehicle Dealer Bond
    Montana Motor Vehicle brokers Bond
    Montana Motor Vehicle Wholesalers Bond
    Montana Motor Vehicle Auction Bond
    Montana Motorboat and Personal Watercraft Dealer Bond
    Montana Snowmobile and ATV Dealer Bond
 NEBRASKA:
    Nebraska Motor Vehicle Dealer Bond
    Nebraska Motor Vehicle Auction Dealer Bond
    Nebraska Motorcycle Dealer Bond
    Nebraska Motor Vehicle Trailer Dealer Bond
 NEVADA:
    Nevada Motor Vehicle Dealer Bond
    Nevada Motor Vehicle Broker Bond
    Nevada Motor Vehicle Lessor Bond
    Nevada Motorcycle Vehicle Dealer Bond
    Nevada Motor Vehicle Trailer Dealer Bond – $10,000
    Nevada Motor Vehicle Trailer Dealer Bond – $50,000
    Nevada Motor Vehicle Distributor Bond
    Nevada Motor Vehicle Manufacturer Bond
    Nevada Motor Vehicle Transporter Bond
    Nevada Motor Vehicle Wrecker Bond
    Nevada Motor Vehicle Rebuilder Bond
    Nevada Motor Vehicle Salvage Pool Bond
    Nevada Motor Vehicle Damage Appraiser Bond
    Nevada Motor Vehicle Body Shop Bond
    Nevada Motor Vehicle Class A Body Shop Bond
    Nevada Motor Vehicle Emissions Inspection Station Bond
    Nevada Title Agent / Title Insurer Bond
 NEW HAMPSHIRE:
    New Hampshire Motor Vehicle Dealer Bond – $10,000
    New Hampshire Motor Vehicle Dealer Bond – $15,000
    New Hampshire Motor Vehicle Dealer Bond – $20,000
    New Hampshire Motor Vehicle Dealer Bond – $25,000
    New Hampshire Motor Vehicle Dealer Association Bond – $100,000
 NEW JERSEY:
    New Jersey New Motor Vehicle Dealer Bond
    New Jersey Used Motor Vehicle Dealer Bond
    New Jersey Motor Vehicle Lessor Bond
 NEW MEXICO:
    New Mexico Motor Vehicle Dealer Bond – $25,000
    New Mexico Motor Vehicle Dealer Bond – $50,000
    New Mexico Motorcycle Dealer Bond
    New Mexico Motor Vehicle Dismantler Bond
    New Mexico Motor Auto Recycler Bond
    New Mexico VIN Inspector Bond
    New Mexico Motor Vehicle Inspection Station Bond
    New Mexico Title Service Company Bond
 NEW YORK:
    New York Motor Vehicle Dealer Bond – $10,000
    New York Motor Vehicle Dealer Bond – $25,000
    New York Motor Vehicle Dealer Bond – $50,000
    New York Motor Vehicle Broker Business Bond – $75,000
 NORTH CAROLINA:
    North Carolina New Motor Vehicle Dealer Bond – $25,000
    North Carolina Used Motor Vehicle Dealer Bond – $25,000
    North Carolina New Motor Vehicle Dealer Bond – $50,000
    North Carolina Used Motor Vehicle Dealer Bond – $50,000
 NORTH DAKOTA:
    North Dakota New Motor Vehicle Dealer Bond
    North Dakota Used Motor Vehicle Dealer Bond
    North Dakota Motorcycle Dealer Bond
    North Dakota Motor Vehicle Trailer Dealer Bond
 OHIO:
    Ohio Motor Vehicle Dealer Bond – $25,000
    Ohio Motor Vehicle Dealer Bond – $30,000
    Ohio Motor Vehicle Dealer Bond – $100,000
 OKLAHOMA:
    Oklahoma Motor Vehicle Dealer Bond – $25,000
    Oklahoma Motor Vehicle Dealer Bond – $50,000
    Oklahoma Used Motor Vehicle Dealer Bond – $15,000
    Oklahoma Motor Vehicle Auction Dealer Bond
    Oklahoma Motor Vehicle Non-Auction Consignment Dealer Bond
    Oklahoma Motor Vehicle Salesperson Bond
 OREGON:
    Oregon Motor Vehicle Dealer Bond
    Oregon Motorcycle Dealer Bond
    Oregon Motor Vehicle Wrecker Dismantler Bond
    Oregon Motor Vehicle Rebuilder Bond
 PENNSYLVANIA:
    Pennsylvania Motor Vehicle Dealer Bond
    Pennsylvania Motor Vehicle Department Full Agent Bond
    Pennsylvania Card Agent Bond
    Pennsylvania Motor Vehicle Messenger Service Bond
    Pennsylvania Motor Vehicle Salvor Bond
    Pennsylvania Motor Vehicle Sales Finance Bond
    Pennsylvania Motor Vehicle Manufacturer Bond
 RHODE ISLAND:
    Rhode Island Motor Vehicle Dealer Bond
 SOUTH CAROLINA:
    South Carolina New Motor Vehicle Dealer Bond
    South Carolina Used Motor Vehicle Dealer Bond
    South Carolina Motor Vehicle Wholesale Dealer Bond
    South Carolina Motorcycle Dealer Bond
    South Carolina Motorcycle Wholesaler Bond
    South Carolina Travel trailer Dealer Bond
 SOUTH DAKOTA:
    South Dakota New Motor Vehicle Dealer Bond
    South Dakota Used Motor Vehicle Dealer Bond
    South Dakota Motor Vehicle Dealer Car Auction Agency Bond
    South Dakota Motorcycle Dealer Bond
    South Dakota Snowmobile Dealer Bond
    South Dakota New Boat Dealer Bond
    South Dakota Used Boat Dealer Bond
    South Dakota Trailer Dealer Bond
 TENNESSEE:
    Tennessee New Motor Vehicle Dealer Bond
    Tennessee Used Motor Vehicle Dealer Bond
    Tennessee Motor Vehicle Auction Dealer Bond
    Tennessee Motorcycle Dealer Bond
    Tennessee Recreational Vehicle Dealer Bond
 TEXAS:
    Texas Motor Vehicle Dealer Bond
    Texas Motor Vehicle Inspector Bond
    Texas Motor Vehicle Inspection Station Bond
 UTAH:
    Utah New Motor Vehicle Dealer Bond
    Utah Used Motor Vehicle Dealer Bond
    Utah Motorcycle Dealer Bond
    Utah Motor Vehicle Crusher Bond
    Utah Motor Vehicle Body Shop Bond
 VERMONT:
    Vermont Motor Vehicle Dealer Bond
 VIRGINIA:
    Vermont Motor Vehicle Dealer Bond
    Virginia Motorcycle, Trailer or T&M Vehicle Dealer Bond
 WASHINGTON:
    Washington New Motor Vehicle Dealer Bond
    Washington Used Motor Vehicle Dealer Bond
    Washington Motorcycle Dealer Bond
    Washington Motor Vehicle Wrecker Bond
 WASHINGTON DC:
    Washington DC Motor Vehicle Dealer Bond
    Washington DC Used Car Lot Bond
 WEST VIRGINIA:
    West Virginia Motor Vehicle Dealer Bond – $10,000
    West Virginia Motor Vehicle Dealer Bond – $25,000
    West Virginia Auto Auction Dealer Bond
    West Virginia Motorcycle Dealer Bond
    West Virginia Motor Vehicle License Service Bond
    West Virginia Motor Vehicle Wrecker Bond
    West Virginia Motor Vehicle Dismantler Bond
    West Virginia Recreational Vehicle Dealer Bond
    West Virginia Trailer Dealer Bond
 WISCONSIN:
    Wisconsin New Motor Vehicle Dealer Bond
    Wisconsin Used Motor Vehicle Dealer Bond
    Wisconsin Motor Vehicle Wholesaler Bond
    Wisconsin Used Motor Vehicle Wholesaler Bond
    Wisconsin Motor Vehicle Auction Dealer Bond
    Wisconsin Motorcycle Dealer Bond
    Wisconsin Used Motorcycle Dealer Bond
    Wisconsin Motor Vehicle Salvage Dealer Bond
    Wisconsin Motor Vehicle Salesperson Bond
 WYOMING:
    Wyoming Motor Vehicle Dealer Bond

New & Used Car Dealer Bond

  • How much does an auto dealer surety bond cost?
  • The cost is a percentage of the bond amount. You can call us for a ball park estimate. If you want an exact price, you can fill out a dealer license bond application and get a free bond quote online.
    • Can I get auto dealer surety bonds with bad credit?
    • Yes. We have great high risk markets and can get you approved regardless for a new & used car dealers bond with bad credit. To learn more, visit our bad credit bond general information page.
      • How long does the application take?
      • We approve auto dealer bonds instantly online. The application process takes only minutes. You can get a no obligation online quote on our website at any time.
      • My friend is an auto dealer. Will my dealership bond cost the same?
        • It is possible, but the rates vary based on the estimated risk of the dealership and their ability to repay claims. Therefore, your pricing could be lower or higher depending on your risk compared to the other dealer. The only way to find out is to get an online quote.
        • How does a motor vehicle dealer surety bond protect my dealership?
        • It doesn’t. MVD bonds protect the public from auto dealer fraud. A claim on your bond must ultimately be paid back by the dealer to the bonding company. You need to obtain insurance to protect your dealership.
        • Do I need an auto dealers bond for selling mobile homes?
        • Most likely. Many states require you to obtain dealer surety bonds to sell various types of mobile homes, including RV’s, manufactured homes and modular homes. However, every state has their own bond requirements; take a look at our state bond requirements below.
        • Do I need new and used car dealer bonds for selling new & used vehicles
        • Usually, no. One car dealer surety bond generally covers both new and used vehicle dealers. However, auto dealer bond requirements vary by state. Take a look at our state bond requirement list below, or contact your state directly to determine its requirements.
        • Does a DMV surety bond differ from car dealer insurance?
        • Yes. Bonds are a form of credit to dealers and insurance for the public. They guarantee that an auto dealer will not break state laws. Should they break laws and cause a claim on the bond, the auto dealer is responsible for any damages. Auto dealer insurance protects the dealer from loss, not the public.

        Auto Dealer Bond Cost

        Costs vary by bond size, applicant, bond form, state and the bond agency chosen. BF Bond only reviews the personal credit of the owners. This is made possible by our large volume of business, which provides sureties “safety in numbers” allowing less scrutiny in the guidelines. Nearly all other bond agencies will review business and personal financials, experience, bank balances and years in business, in addition to personal credit. Use our tool and get a ballpark estimate, or apply to get approved instantly online.

      What Is A Dealer Bond?

      It is a guarantee that vehicle dealers will follow the regulations of their state, and is usually required to obtain a license. Watch our video on this page “How To Get An Auto Dealer License” to learn how to get a license.

    Get A Bad Credit Dealer Surety Bond

    We have access to high risk programs, many of which are exclusive to us, allowing individuals with bad credit to get approved. However, the price will be significantly higher compared to standard markets. Should you choose to use another bond agency, they will likely broker the bond through us, increasing costs and time.

Get The Auto Dealer License Bond You Need

A retail dealer bond allows you to sell vehicles to the public and other dealers/wholesalers. A wholesale dealer bond only allows you to sell vehicles to other dealers and wholesalers.

A used auto dealer bond applies to both retail and wholesale dealers, and only one bond is needed to sell new and used vehicles. Whichever type you need, you can apply online for all dealer license bonds and get an instant approval. You can also view our state bond requirement list below.

Definition: A license bond guaranteeing motor vehicle dealers follow the rules of the DMV in their respective states. The bond is required of new and used car dealers, as well as mobile home dealers to obtain their license.

Contact:

Jose Ward

800-925-1008 ext 110

JW@bfbond.com