Used Car Dealer Bonds Get Pricey in Alabama

Written by JoAnn Smith on June 2nd, 2014. Posted in Alabama, Bond Types, Latest News, License and Permit Bonds, Motor Vehicle Bonds, States, Surety Bond Blog

     used car dealer bond      
used car dealer bonds go up
If you are planning to start a business selling used cars in Alabama you better do it quick, because the cost of a used car dealer bond will go up beginning in August. That news has been greeted with a bit of dismay, I am sure, in the used car trade down south. As the saying goes, it isn’t all magnolias and mint juleps here, but on the other hand Alabama has always had a healthy used car trade. That the cost of selling used cars or anything at all has gone up shouldn’t be a big surprise. As anyone in this business knows, getting your used car bond is simply part of the business. So true to form, the cost of staying in business for this kind of industry, like everything else, is going up.

Who Needs to Get Bonded?

In addition to a new bond amount, as it will be moving from the old rate of $10,000 to a new $25,000 used car dealer bond, Alabama has also widened the scope of who exactly needs to have this type of surety bond for their business. While used car dealers will still need to get bonded as part of their licensing, car dismantlers and designated agents for car dealerships, whether for old cars or new, will also need to be bonded. The amount for all of these businesses will be $25,000. New car dealerships in Alabama have always and will continue to be required to have a $25,000 auto dealer bond as part of their licensing. So for them, this change will not affect the amount of their surety bond. But if a business was “grandfathered” in and so exempt from providing a surety bond, that will end when the governor signs Alabama House Bill 40. Expect that to happen soon with the bill going into effect in August.

Finding Your Used Car Bond

Whether you want to sell used cars in Alabama or new trucks in Alaska, BuySurety can help you to find the right kind of surety bond for your business at the right price. We have been supplying used car dealer bonds, auto dealer bonds and even motor vehicle dealer bonds for over twenty years to every state in the union. Let our helpful customer service people find the right surety bond for your business, whatever business you might conduct. Get bonded with BuySurety today.

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Bill Helps Alabama Contractors on Public Projects

Written by JoAnn Smith on April 29th, 2014. Posted in Alabama, Commercial Bonds, Latest News, Performance Bonds, Surety Bond Blog

     Alabama contractors      
Alabama contractors get help with public project bids.
Alabama contractors who bid on public projects might be seeing some help from legislative changes in the near future. A bill has just passed that will help contractors in Alabama by ensuring prompt payment on public projects.
 
As anyone knows who is in the contracting business, getting prompt payment for work completed can either make or break a business. For Alabama contractors who are looking to expand their reach into lucrative public projects, this could be welcome news.
 

 

Alabama Contractors Need Prompt Payment

With changes from the passage of Alabama House Bill 24, many contractors can look forward to payment for public works projects to be timelier. While current law requires Alabama contractors to wait until as long as 45 days after the public owner of the project accepts estimates and terms for the first partial payment, the new law would restrict this wait time to 35 days from the signature of pay authorization. With the new law the owner can now also designate an authorizing agent for the payments. It will also change the time in which the final payment must be made from 45 days from completion of the project to 35 days from the completion of the project. Still in place is the requirement of a bid bond for all project bids and a performance bond posted with the winning bid before work begins.

Bid Bonds for Alabama Contractors

For all Alabama contractors who are considering taking part in the bid process for a public works project, getting your bid bond in place is simply one important step. Don’t be left out of these kinds of opportunities by not securing the right project bonds before you start the process. Let BuySurety help you find the right surety bond for your next project. We have been supplying bid bonds and performance bonds for Alabama contractors on public projects for over two decades. Let our informed friendly customer service reps help you find the right surety bond for your next project. Go to BuySurety and get bonded quickly and easily.

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Alabama Considers Three Surety Bond Bills

Written by JoAnn Smith on January 24th, 2014. Posted in Alabama, Commercial Bonds, License and Permit Bonds, States, Surety Bond Blog

surety bond bill
surety bond bills for Alabama are coming
Now that the 2014 legislative sessions have begun, we are beginning to see a few states take action on a number of surety bond bill issues. In Alabama the state legislature is looking in particular at three bills that will affect the uses of surety bonds for businesses that require permits for liquified petroleum gas, operate a vessel in public water or operate a nonpublic school in the grades of K-12. Here are the details.

Liquified Petroleum Gas in Alabama

While the laws on the books today allow a business the option to post a permit surety bond or even post cash instead of taking out an insurance policy when procuring a permit license for petroleum gas, that will soon be changing. With the passage of House Bill 11 and Senate Bill 29 these options will be eliminated. If passed, companies will now be required to take out the appropriate insurance policy and will not be able to use a permit surety bond in it’s place.

Operating a Vessel on Public Waters

There is a bill currently being considered which would now require anyone who either operates a vessel on public waters or who leases a vessel to others for their use on public waters to first obtain a vessel liability bond in the amount of $50,000. They would also be able to obtain an insurance policy or post the cash amount if they chose to not post the surety bond. The surety bond bill would be enacted through Senate Bill 30 to cover liability for injury, death or damage that arose through the operation, maintenance or control of the vessel.

Surety Bond Bill Covering K-12 Schools in Alabama

Currently any school that offers education in private, nonpublic or church schools for grades K-12 in the state of Alabama is required to post a license surety bond for $10,000 as part of the licensing requirements. If Alabama Senate Bill 38 is passed the schools will no longer be required to register for a license nor will they be any longer required to post a surety bond as part of the license. The Department of Education had been requiring the license and surety bond as part of the requirements for these schools that were offered outside of the public school system, but will no longer require then if the bill is passed.

Surety Bond Bills – Finding the Right Surety Bond

As the new year progresses, many states will begin enacting new surety bond bills that may require your business to begin to post surety bonds. When this happens don’t get caught unprepared. If you think that you may be seeing some changes in the surety bond laws for your business, get the information you need to do business right. BuySurety has been providing surety bonds to businesses of all sizes since 1998. Our knowledgeable and friendly customer service people can help you determine just what kind of surety bond bills have passed in your state and business so you are always covered. Don’t take chances with your business, contact BuySurety today and get bonded to stay legal.  

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The Importance of Construction and Performance Surety Bonds

Written by JoAnn Smith on December 10th, 2013. Posted in Alabama, Bond Types, Latest News, Massachusetts, New Jersey, Performance Bonds, Surety Bond Blog

     cost of a surety bond, performance bond
The Cost of a Performance Surety Bond Ensures Construction
December 10, 2013 – Many cities have learned the hard way that cutting costs by not requiring a performance surety bond from a contractor is a bad move.  In two out of three cases recently, a city or government board had required the contractor for local municipal construction projects to post a performance surety bond to ensure completion. When the contractor was unable to finish the project, the surety bond company was able to step into the breach and resume the project. Cities are beginning to see just how important having a contractor post a performance surety bond can be to their own financial welfare. As you can see from our third example, not having that performance surety bond requirement can have major repercussions.

Massachusetts Middle School Project Returns

In Sutton Massachusetts a middle school and high school development had been brought to a halt earlier in the year. The city had fired the general contractor on the job for excessive delays. Now the Town Administrator has announced that the surety company that took over is accepting bids from six different contractors to find the best bid for completion. Months of delay on the project had led the city selectmen to dismiss the general contractor and his sub-contractors and invoke the performance surety bond to find a new general contractor and identify the best sub-contractors to complete the project.

Voorhees New Jersey to Get New Fire Station

Back in August the Board of Fire Commissioners had dismissed the contractor working on a new fire station for the area. The original 1950 building could no longer be used because of changes in the equipment and today’s fire fighting standards. The new building was begun in February 2012 but saw numerous delays. Citing these delays and other problems, the contractor was dismissed and the surety company was brought in to take over the project. The surety company has announced it has hired subcontractors and can begin work on the building in time to have it completed by April of 2014.

Alabama City Should Have Required Performance Surety Bonds

The city of Hanceville Alabama is looking through their planning and building regulations with a fine tooth comb these days. That is because they may find themselves left with tens of thousands of dollars in costs when a local developer went bankrupt before Baylor Cove, the subdivision it was building in the city, was completed. Many cities require developers to post a performance surety bond to cover the costs of infrastructure on a subdivision if they should go bankrupt before completing. Because the city of Hanceville did not require a performance bond from this developer, the cost of completing sewer lines, roads and other infrastructure such as sidewalks is left open to interpretation. People’s Bank foreclosed on the 28 lot subdivision and has offered the city ownership of undeveloped lots in exchange for taking over the paving and upkeep of the streets in Baylor Cove. The city isn’t so sure that is a good deal, but if they don’t take it on the citizens who have bought and now live in the area may have something to say about it.

Getting a Performance Bond for a Fair Price

As you can see, more cities are now requiring a performance bond for any sizable construction project and for a good reason. While the economy is improving, many see the construction business still struggling for the next few years to overcome the massive losses in the building trade. If you are a new construction company, contractor or sub-contractor, talk to BuySurety about your next performance surety bond. We can help you qualify, make sure you have the right bond for that project and get it for you at a rate that will help your bottom line.

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Car Dealer Bond Requirements for Louisiana, Mississippi and Alabama

Written by JoAnn Smith on October 26th, 2013. Posted in Alabama, License and Permit Bonds, Lousiana, Mississippi, Motor Vehicle Bonds, Surety Bond Blog

     car dealer bond
car dealer bond requirements are changing
The Deep South has a long love affair with vehicles, road trips through sun-splashed countryside and white jacketed car dealers offering you great cars at rock bottom prices. Whether you are offering recreational vehicles or practical cars and trucks, a car dealer bond is going to be an important part of your trade. Knowing the requirements for DMV bonds when selling in Louisiana, Mississippi and Alabama will let your good old boys make those deals all the more easily.

Louisiana Car Dealer Bonds

Located between the giant plains of Texas and the old south plantations of Mississippi, Louisiana has plenty of great opportunities for anyone looking to establish a car dealership. The requirements for a car dealer bond as part of your licensing are very straight-forward. If you wish to open a new or used car dealership in Louisiana you will also need to post a $20,000 car dealer bond. The bonds are good for that year and will expire on December 31st, when they will need to be renewed. The Baton Rouge DMV offices handle the car dealer bonds for all of the state.

Mississippi Car Dealer Bond Requirements

Anyone who has driven down a country road in Mississippi in spring knows why it is called The Magnolia State. The sweet smell of magnolia blossoms through the open window of your car can banish any gloom. In Mississippi you will need to post surety bonds for both the dealership and each agent. If you are planning to sell new vehicles you will need to post an auto dealer bond for $25,000. In addition, each agent or salesperson you employ at the dealership will need to have a $15,000 car salesperson bond as well. Only dealerships that sell new cars need to have individual surety bonds for their salespeople, used car lots can have their salespeople bonded under the dealer bond.

Alabama Car Dealership Surety Bonds

The Old South still lives in Alabama, where you will continue to see the old Confederate flag fly at many businesses. Small businesses abound, which may be why Alabama actually requires licensing and surety bonds for anyone who sells more than just five vehicles. The car dealer bonds that are required for this license only run until September 30th of any given year, when they expire and must be renewed. The licensing and car bond requirements are split along several different categories:
  • New Motor Vehicle Dealers – $25,000 car dealer bond
  • Used Motor Vehicle Dealers* – $10,000 car dealer bond
  • Automotive Parts Recyclers and Auto Dismantlers – $10,000 car dealer bond
*Used car dealers in Alabama include anyone who reconditions, rebuilds or sells wholesale.

Offering a Good Deal on Car Dealership Bonds

No matter where you live in the south, or any other part of the U.S., it is simply a part of business when you open a car dealership that you will need to have car dealer bonds too. Although the requirements vary from state to state, BuySurety can take care of all your auto dealer bond needs regardless of your situation, location or credit standing.

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