Auto Dealer Bond

Auto dealer bonds, also know as motor vehicle dealer (MVD) bonds, used car dealer bonds, or simply car dealer bonds, guarantee that the car dealer manages the dealership according to the requirements of the state in which it is operating.

We have excellent MVD bond programs for good credit as well as less than perfect credit. We can write MVD bonds for all fifty States with 24 hour approvals.

 

State Specific Auto Dealer Bonds

[rehabtabs] [rehabtab title=”Arizona”]

Arizona

Arizona-state-sealThe State of Arizona requires surety bonds for all motor vehicle dealers, title service companies, and automotive recyclers. This bond must be executed by an insurance or bonding company authorized to do business in the State of Arizona. The surety bond amount varies by company type as follows: New Motor Vehicle Dealer Used Motor Vehicle Dealer Public Consignment Auction Dealer Bond amount: $100,000 Title Service Company Broker Wholesale Auto Auction Dealer Wholesale Motor Vehicle Dealer Bond amount: $25,000 Automotive Recycler Bond amount: $20,000 Additional Notes: With the exception of title service companies, all dealers must provide an original bond, no copies or facsimiles. In addition, a separate surety bond must be provided for each individual application as well as for each county in which the dealer/licensee has a place of business. A power of attorney for the attorney-in-fact must be attached to the bond. The bond must be signed by the individual, all partners (if a partnership) or one corporate officer (if incorporated). The surety bond is continuous and may be canceled only upon receipt of 60 days written notice to Dealer Licensing. Submit forms to: Dealer Licensing Motor Vehicle Division PO Box 2100 Phoenix AZ 85001-2100 E-mail: dealerlicensing@azdot.gov Phone: (602) 712-7571 [/rehabtab] [rehabtab title=”California”]

California

California State Seal - Surety Bond The auto dealer bond requirements in California are divided by dealership type. In order to obtain a dealer license, car dealerships in California must provide a $50,000 auto dealer bond. For $10,000 California auto dealer bond is required for Motorcycle Dealers, ATV Dealers and Wholesale-Exclusive Dealers (with sales of under 25 vehicles annually).
Forms
(PDF) California auto dealer surety bond form OL25. (PDF) Motorcycle Dealers, ATV Dealers and Wholesale-Exclusive Dealers Surety Bond Form OL 25B (PDF) California auto dealer surety bond form instructions Submit forms to: Licensing Operations Division Occupational Licensing Branch P.O. Box 932342 MS—L224 Sacramento, CA 94232-3420 [/rehabtab] [rehabtab title=”Florida”]

Florida

Florida State Seal - Surety Bond In the State of Florida, the surety bond amount required depends on the type of motor vehicle dealer. The surety bond amounts and required bond forms are as follows:
  • For motor vehicle dealers, the requirement is an original $25,000 surety bond.
  • For motor home dealers, the requirement is an original $25,000 surety bond.
  • For recreational vehicle (RV) dealers, the requirement is an original $10,000 surety bond.
Failure to meet all of the licensing requirements, including, but not limited to obtaining the proper dealer surety bond, constitutes a second-degree misdemeanor and is punishable by up to six months in jail and/or fine of $500. According to the Florida DHSMV, such person will also be liable under civil law for violation of Florida’s Deceptive and Unfair Trade Practices Act, and be subject to fines of up to $5000 per violation, and may face a permanent injunction issued by a circuit court.
Forms
(PDF) Florida Motor Vehicle Dealer Surety Bond Form 86020 (PDF) Florida Mobile Home Dealer Surety Bond Form 86018 (PDF) Florida Recreational Vehicle Dealer Surety Bond Form 86019 Submit forms to: Florida Department of Highway Safety and Motor Vehicles Division of Motor Vehicles 2900 Apalachee Parkway Room A312, Mailstop #65 Tallahassee, FL 32399 [/rehabtab] [rehabtab title=”Georgia”]

Georgia

Georgia State Seal - Surety BondIn Georgia, only used car and used car parts dealers are required to obtain a surety bond. In addition to being registered and licensed, the Georgia State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers require these dealers to purchase and maintain a $35,000 surety bond. The Board defines used motor vehicle dealers as “motor vehicle brokers, independent motor vehicle leasing agencies which sell or offer to sell used motor vehicles, used motor vehicle auction companies and pawnbrokers who sell motor vehicles to the public. Used parts license include used parts dealers, re-builders, and salvage dealers.”
Forms
(PDF) Georgia Used Car Dealer Surety Bond Form Submit forms to: Georgia State Board of Registration of Used Motor Vehicle Dealers & Used Motor Vehicle Parts Dealers Used Motor Vehicle Dealers Division P.O. BOX 13446 [/rehabtab] [rehabtab title=”Maryland”]

Maryland

Maryland State Seal - Surety BondThe State of Maryland has numerous surety bond requirements for vehicle dealers. Maryland’s requirements are more complicated than most states. For example, the amount of the surety bond varies based on different factors such as how many vehicles are sold annually, the type of dealership (new car, used car, motorcycle, etc), and other factors. For new car dealers, the bond requirements are $50,000 for up to 500 vehicles sold. The amount goes to $75,000 for 501-1000, $100,000 for 1001 to 2500, and $300,000 if sales are more than 2,500 vehicles. For used car dealers, the bond requirements are $15,000 for up to 250 vehicles sold. The amount goes to $25,000 for 251-500, $35,000 for 501 to 1000, $50,000 for 1001-2500, and $150,000 if sales are more than 2,500 used vehicles. For additional vehicle dealer bond requirements such as wholesale, motorcycle, trailer, and emergency vehicle dealers, please refer to the Maryland surety bond requirements document listed below.
Forms
(PDF) Maryland Dealer Surety Bond Requirements
(PDF) Maryland Dealer License Application
(PDF) Maryland Wholesale Dealer License Packet

Submit forms to: Motor Vehicle Administration 6601 Ritchie Highway, N.E. Glen Burnie, Maryland 21062 [/rehabtab] [rehabtab title=”New York”]

New York

New York State SealCar dealers are related DMV businesses in the State of New York are required to provide a surety bond in an amount that is dependent on the number of vehicles sold. It is important that the business name and mailing address on the surety bond are exactly the same as the business name and mailing address on the DMV facility license. Make sure that you write your Facility Number on the bond. Surety Bond Amounts New car dealers must have a bond in the amount of $50,000. Used car dealers who sold more than 200 vehicles in the previous calendar year must have a bond in the amount of $25,000. Used car dealers who sold 200 or fewer vehicles during the previous calendar year must have a bond in the amount of $10,000.
Forms
(PDF) New York Auto Dealer Surety Bond Form Submit forms to: Department of Motor Vehicles PO Box 2700 Albany, NY 12220 [/rehabtab] [rehabtab title=”Texas”]

Texas

Texas State Seal - Surety BondSurety bond requirements in the State of Texas are quite basic. Auto dealers are required to have a $25,000 surety bond for the duration of their two-year license. The bond term extends for the same length of time as the dealer’s license term. Prior to 2007, dealer licenses (and thus surety bonds) were one year in duration. In 2007, the Texas Legislature passed House Bill 2651, which mandated that all new license applicants be issued a two-year license as of September 1, 2008. This requirement extends to the following types of car dealers in Texas: motor vehicle dealers, motorcycle dealers, wholesale auto dealers, and wholesale auction dealers.
Forms
(PDF) Texas Dealer Surety Bond Form (Sample) Submit forms to: Texas Department of Motor Vehicles Motor Vehicle Division P.O. Box 2293 Austin, Texas 78768 [/rehabtab] [/rehabtabs]

HOT NEWS - UPCOMING DEADLINES

  • Georgia used car dealer bonds expire March 31! Get a FREE QUOTE on a Georgia used car dealer bond now!
  • Florida car dealer bonds expire April 30! Get a FREE QUOTE on a Florida motor vehicle dealer bond now!
  • New Jersey dealer license bonds expire March 31! Get a FREE QUOTE on a New Jersey New and Used car dealer bond now!

Surety Bond Cost

The cost (premium) for this bond will be a small percentage of the required bond amount and is calculated on a case-to-case basis. The premium will have to be paid at the start of the first term and must be renewed annually for as long as the court holds the bond. The first year’s premium is fully earned even if the court releases the bond before the end of the term, however after the first year the premium will be pro-rated if the court decides to release the bond during the term period.

You Always Get a Low Cost Surety Bond with BuySurety

If you are like many first time surety bond buyers, you are probably wondering how much a surety bond will cost. The truth is each state has its own regulations about how much coverage you need to have and BuySurety will always work within those state legal guidelines. Find out quickly and easily just how little you need to pay for your xx surety bonds by contacting our knowledgeable and friendly customer service staff today.

Poor Credit is Never a Problem at BuySurety

Whatever the reason, if you need a surety bond and your credit is poor, it isn't a problem at BuySurety. While xx surety bonds, like many kinds of surety bonds, are credit based that doesn't mean you can't qualify. For those with truly low ratings we have a special program to help you get the surety bonds you need to succeed. Just talk to our credit specialist to find out how BuySurety can help you to qualify for a surety bond today.

Why Get Bonded? Understand Your Surety Bond Definition

Like many small business owners, you may be wondering just what exactly this surety bond is and why you need to have it. Basically a surety bond is an agreement between three parties: the person who is requiring the bond (obligee), the person who is obliged to carry the bond (principal), and the person who is providing the bond (surety). It creates a financial guarantee by one party to another and brings in a third party to back that guarantee up. If you would like to see a more detailed description, why not check out our Introduction to Surety Bonds and get the details.

Get Your No-Obligation Free Quote Today

We know that time is money. That is why we offer one of the fastest turnaround times for you to get bonded in the business. Why delay? You can call us today and get started on your free bond quote right away. You have a choice of calling us directly or going to our handy online form. Whichever way you choose, you will have a no-obligation free surety bond quote the same day. Get bonded quickly with BuySurety.

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