Did you know almost every state requires a surety bond as part of the licensing process for motor vehicle dealers?
These bonds guarantee a licensed motor vehicle dealership will comply with state regulations and protect consumers from fraud and other wrongful actions on the part of dealerships and their employees. The bond's exact level of protection depends on state and local laws.
Motorcycle dealers, mobile home dealers, car dealers and more may all face motor vehicle dealer bond requirements. Some states also have different requirements for new versus used vehicle dealers.
The required dollar amount of the bond also varies by state, ranging from $10,000 up to $300,000. Most states have a set limit, but some have variable limits depending on how many vehicles a dealer sells.
All motor vehicle dealer bonds work in the same way: If a bonded motor vehicle dealer breaks the bond's terms, the damaged party, such as a customer, bank or government agency, can make a claim against the bond for compensation. The surety will pay out the claim if warranted, but the dealer is responsible for paying back the surety in full.
Big “I" Markets partner Goldleaf Surety has an experienced staff of account specialists who can assist you with obtaining a motor vehicle dealer bond, or any other type of bond you may need.
For contract bonds, license and permit bonds, court and fidelity bonds, large commercial bonds, technology and software bonds, and private equity ownership bonds, log in to Big "I" Markets or send us an email and an underwriter will contact you.