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. 
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.
With our Surety Companies you are guaranteed approved for the $5,000 New York City Employment Agency Bond required by the NYC Department of Consumer Affairs.
