Tag Archives: New Car delaer 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