Luke Bochansky

(623) 533-3534

Auto Dealer Surety Bond

In order to obtain an auto dealer license, auto dealers in most states must file a surety bond with the state's Department of Motor Vehicles (DMV) before they can get their license. The auto dealer bond provides protection for customers, sellers, financial organizations and/or government agencies if a dealer commits fraud or unethical business practices. The surety bonds regulate the industry by helping entities recover from any resulting financial loss.

Common auto dealer bonds are:

  • DMV Bonds
  • RV Bonds
  • Motorcycle dealer bonds
  • Used car dealer bonds
  • Wholesale car dealer bonds

Each of these bonds works effectively the same way. If a bonded motor vehicle dealer breaks the terms of the bond, the injured party (customer, bank, etc.) can make a claim against the bond to get compensated for their loss.

The cost of your Surety Bond will be dependent on a number of factors. Largely, the cost of the bond will depend on the surety bond amount, your credit and financial credentials. If your financial credentials are strong, you will qualify for the standard market and your premium could be be as low as 1% of the face value of the bond. Conversely, those with poor credit will have to obtain a surety bond through the secondary market and will likely pay a premium that's a higher percentage of the bond amount.

By: Luke Bochansky

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LukeBochansky

Luke
Bochansky
(623) 533-3534

About This Site

SuretyBonds.Biz is a website for Viking Bond Service, Inc. producers to provide information about frequently requested surety bonds in their words. Viking producers specialize in surety bonds of all types. Since bonds are the sole product provided by Viking, the producers are an excellent resource for information and assistance.