surety bonds in place as part of their licensing requirements. The good news is that the requirements are not onerous. Here are the details:
Connecticut DMV Surety BondsThe interesting thing about surety bond requirements in Connecticut is that they are required for related businesses other than simply places that sell cars and trucks. The other interesting thing is that they are still called DMV bonds and cover the same basic concept, making sure that the business holds up its end of the agreement with their customers according to the business license. Here are the three types of auto-related businesses that Connecticut requires DMV surety bonds from and the amounts required for the auto dealer bonds:
- New Motor Vehicle Sales – $50,000 DMV surety bond
- Used Motor Vehicle Sales – $50,000 DMV surety bond
- Vehicle Leasing Companies – $10,000 DMV surety bond
- Vehicle Renting Companies – $10,000 DMV surety bond
- Vehicle Repair Ships (including limited repairs) – $5,000 DMV surety bond
Rhode Island Auto Dealer Licensing RequirementsWhile there are certainly other requirements for licensing an auto dealership in Rhode Island, the one we are concerned with here is the surety bond requirement. Luckily, it is a pretty straight-forward requirement that covers all types of auto dealerships. So whether you are selling cars, trucks or motorcycles and regardless of whether you sell used or new vehicles, the requirements are all the same. You will need to post a $15,000 DMV surety bond with the Rhode Island Dept of Motor Vehicles and have proof of it before you apply for that license. Keep in mind that these bonds must expire on December 31st of each year, so purchasing a bond in June will mean still needing to renew in the New Year.
Auto Dealer Requirements in MassachusettsOf course, Massachusetts has to do things a bit differently. Although the state makes the requirement to have auto dealerships licensed and also a surety bond posted, the individual municipalities are who actually does the licensing. So, although you may need to talk to the folks at City Hall in Boston or Springfield regarding the license, the requirements will be the same.
- Selling New Vehicles – This is a Class I License in Massachusetts. You will not be required to post a bond but you will need to have repair facilities on the premises and have used vehicles be an incidental part of your business for this.
- Selling Used Vehicles – This is a Class II License in Massachusetts and you will need to post a $25,000 used car dealer bond as part of your licensing. The bond is to cover any judgements against the business for failure to deliver the title or if the dealership is found to have been selling stolen vehicles or ones that have had their mileage rolled back. In other words, to protect buyers from cheating used car dealers.
- Selling Parts and Junked Cars – Classified as a Class III license, this license does not require a surety bond.
Finding an Auto Dealer or Used Car Dealer BondSo now that you know what is required, do you know how to find the best possible rate for that surety bond? Not every business is the same and that holds true for both auto dealerships and surety bond companies. If you are new to the business without a proven track record or just came through some tough times that shredded your credit rating, you might have trouble getting approved for a surety bond. That is where BuySurety can help. We will work with you to get you approved and make sure you have the right surety bond coverage for your business. Come by our site and request a quote today to see what we have to offer or give us a call to find out more today.
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