How Can You Get Your Auto Dealer Bond?
Those who are looking to get their motor vehicle dealer license are generally required to provide a surety bond to guarantee that their dealership will comply with industry regulations. An auto dealer bond, also known as car dealer bond, automobile bond, DMV bond, dealer bond, motor vehicle dealer bond, etc. is used to protect consumers from fraud or any other unethical activities committed by dealerships and their employees.
In order to receive a motor vehicle dealer license, the first thing a new applicant must do is contact their state’s Department of Motor Vehicles (DMV). From there, the applicant can get important information about the state’s current licensing requirements. As far as auto dealer bonds are concerned, you must first apply for a quote from a particular bonding company. After your application is approved, your bond agent will inform you about how much your bond premium will cost and will also provide a formal agreement with the bonding company.
Dealers with excellent personal credit generally need to pay about 1-3% of the bond amount. However, dealers with bad credit are usually required to pay more. As soon as you pay your premium and sign the contract, you will receive your auto dealer bond.