West Virginia, Maryland and Washington D.C. Auto Dealer Surety Bonds

Written by JoAnn Smith on December 4th, 2013. Posted in Commercial Bonds, District of Columbia, Legislation, License and Permit Bonds, Maryland, Motor Vehicle Bonds, States, Surety Bond Blog, West Virginia

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Auto dealer bonds in states such as West Virginia and Maryland as well as their neighbor the District of Columbia are all required as part of the licensing for an auto dealership. The exception in this area is Delaware, which is one of only three states in the entire country which do not require an auto dealer bond as part of the licensing process for an auto dealership. Ohio and Vermont require specific surety bonds, but not the type of auto dealer bond we are discussing here. But like most states, there are specific circumstances in each state that govern the requirements for an auto dealer bond. Here are the details for West Virginia, Maryland and our nation’s capital, Washington D.C.

West Virginia Auto Dealership Requirements

Luckily for West Virginia the requirements are very simple. If you want to open or extend a dealership into the Mountain State of Virginia you only need to post a $25,000 Motor Vehicle Dealer Bond. It doesn’t matter how many trucks, cars, motorcycles or any other kind of vehicle you sell, the bond amount is the same. It doesn’t even matter if it is used vehicles or new ones. The bond you need to post is still the same in West Virginia. Luckily it is just that easy to do. Especially if you have someone like BuySurety to help you out!

Maryland Car Dealership Bonds

If you want to open an auto dealership in Maryland, you will need to pay close attention to the type of vehicle and how many you want to sell. That is because the regulations regarding the posting of car dealer bonds in Maryland are pretty detailed. Here is the lowdown, straight from the Maryland DMV website:

Type of Business

Number of Vehicles Sold or Transferred

Bond Amount Required

New Vehicle Dealer License 1-500 501-1,000 1,001-2,500 Over 2,500 $50,000 $75,000 $100,000 $300,000
Used Vehicle Dealer License 1-250 251-500 501-1,000 1,001-2,500 Over 2,500 $15,000 $25,000 $35,000 $50,000 $150,000
Wholesale Vehicle Dealer License 1-250 251-500 501-1,000 1,001-2,500 Over 2,500 $15,000 $25,000 $35,000 $50,000 $150,000
Motorcycle Dealer License (new vehicles) 1-500 501-1,000 1,001-2,500 Over 2,500 $50,000 $75,000 $100,000 $300,000
Motorcycle Dealer License (used vehicles) 1-250 251-500 501-1,000 1,001-2,500 Over 2,500 $15,000 $25,000 $35,000 $50,000 $150,000
Emergency Vehicle Dealer (new vehicles) 1-500 501-1,000 1,001-2,500 Over 2,500 $50,000 $75,000 $100,000 $300,000
Emergency Vehicle Dealer (used vehicles) 1-250 251-500 501-1,000 1,001-2,500 Over 2,500 $15,000 $25,000 $35,000 $50,000 $150,000
 

District of Columbia Auto Dealer Bonds

Luckily, for anyone considering opening up an auto dealership in the District of Columbia, it is not anywhere near as complicated as in Maryland. There are, however, several levels of surety bonds, depending on whether your dealership also offers the ability to repair vehicles as well as sell them. They all must expire on October 31st each year. Here are the details for this:
  • New and Used Vehicles                                                        $25,000 Vehicle Dealer Bond
  • Includes Auto Repair (5 or less employees)                  $2,000 Auto Repair Dealer Bond
  • Includes Auto Repair (more than 5 employees)         $5,000 Auto Repair Dealer Bond
If you are not sure if your proposed auto dealership in the District of Columbia qualifies as having an auto repair on premises, be sure to check with the DC DMV first. Got question? We have the answers! Come by our website and see how easy it is to get that auto dealer bond you need today.

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Surety Industry Challenges Washington, D.C. Green Building Laws

Written by Surety Bond Expert on November 3rd, 2011. Posted in District of Columbia, Surety Bond Blog

Performance bonds LEED CertificationA 5 year old law in Washington, DC is under fire from the surety bond industry for having overly strict performance requirements, specifically LEED certification. The law requires developers to provide a $3 million surety bond, letter of credit, or cash payment as a guarantee that green certification will be met. The reality is, no surety company will issue a $3m surety bond for any of these projects. And why would they? With so little precedent, not enough is know about the Leadership in Energy and Environmental Design (LEED) certification to insure that terms will be met by a developer. “If I’m a surety and I have all these questions, do I really want to write something that I don’t know the true scope of, don’t know the true liability of?” said Mark McCallum, CEO of the NASBP (National Association of Surety Bond Producers). “It’s not going to be a vibrant market.” D.C. councilwoman Mary Cheh has taken steps to modify the law in order to accept a “binding pledge” from a developer in lieu of a surety bond to guarantee green. By committing to the pledge, developers don’t have to allocate resources to the surety bond and can, instead, apply those resources towards making a project as green as possible. Source: bizjournals.com

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