Motor Vehicle Dealer Bond Information
It’s important not to confuse an auto dealer bond with insurance, which is different from a bond. Even though dealer bonds are sometimes wrongfully referred to as auto dealer bond insurance, they do not protect the dealer but the general public. Think of the dealer bond as a line of credit extended to the dealership by the bonding company. The amount of the dealer bond will differ depending on your credit, business, and other factors. When you get a quote for your dealer bond, the company will talk with you about dealer bond specifics in your state when it comes to a quote and credit.
Simply put, an auto dealer bond is a way to compensate dealers' customers if they become victims of fraud or unethical business practices. If you run a business that involves selling automobiles, it's vital that you get an auto dealer bond when you're working with the public. The bond amount of your motor vehicle dealer bond will depend on several factors. Having an auto dealer bond allows you to keep the cost of your cars low, giving your business the competitive edge you need when it comes to selling new and used cars. A bond can help with the following:
- Tampering with the odometer
- Providing false information about the vehicle’s condition
- Failure to honor oral or written warranties
- Engaging in deceptive financing methods, such as “yo-yo” financing
- Not paying state sales tax or other applicable fees
- Not reporting sales
- Failing to adhere by the conditions of their license type
A state dealer bond claim can be made on the motor vehicle auto dealer bond if the dealership doesn’t follow all applicable laws and regulations. If a legitimate bond claim is filed against the dealer, the auto dealer bond surety will pay all relevant costs up to the bond amount of the surety bond it had underwritten. However, the dealer will have to reimburse these costs later on, which means avoiding claims is the best course of action for the dealer.
Motor Vehicle Dealer Bond Agreement
An auto dealer surety bond is a binding contractual agreement between three parties: the obligee (the state requiring the dealer bond), the principal (the auto dealer receiving the bond), and the surety (the provider of the dealer bond). The bond amount of your bonding can depend on several factors. Listed below are the 3 absolutes in bond surety in order to be eligible to pay the cost of a bond premium for a motor vehicle auto dealer surety bond. Your quote will likely be close to the actual motor vehicle dealer bond cost.
Bonds Require That You:
- Most be a US Citizen
- Cannot be in current bankruptcy
- Cannot be behind in child support
In order to get your auto dealer bond, you'll need to fill out a bond application. Filling out the bond application can be complicated. Be sure to call your bond surety company if you need help with the motor vehicle bond application. One of the key parts of filling out the motor vehicle bond application is to understand the bond amount that you'll be required to pay for your premium. It's vital that the bond application is filled out correctly in order to ensure that you're protected. Steer clear of free online advice that tells you what you need to put on your auto dealer bond for a bond motor vehicle dealer application. This information is often faulty and can result in lengthy phone calls to get your bond application corrected.
You likely have questions about your bonds. Your surety company will talk with you about the bond amount, your license, and other information required to get your motor vehicle dealer bond when you call. Whether you have questions about what the bond will provide for your company, the amount you owe today to secure your bond, or how to find out more about your bond premium or get a bond quote depending on your business and credit history, don't hesitate to get answers via giving us a call or email. We're here to get answers to your bonds questions. Call us to get the information on the bonds you need in order to pay for your auto dealer bond premium quickly and efficiently. Reach out to us via phone or email to get information on bonds, or to get the bonds quote you need. Call us today to learn more about a free quote for your used or new auto motor vehicle dealer surety bond. We know that bonds can make or break your business, and we're here to ensure that your auto credit bonds protect your business. Read more about Texas motor vehicle dealer bonds, California motor vehicle dealer bonds, or Florida motor vehicle dealer bonds.