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What is an Auto Dealer Bond?

What is an Auto Dealer Bond?

An auto dealer surety bond is a type of insurance you're required to purchase as a guarantee that you will:

  • Fulfill your promises to deliver quality vehicles (or parts) to the public and/or other dealerships
  • Manage the vehicle purchase process for your customers
  • Follow all dealership laws and regulations in your state
  • And pay all appropriate sales taxes

An auto dealer surety bond is a requirement to obtain a dealer license in your state.

It's unfortunate, but there is no way around providing the required level of protection your state requires.


Why Are You Required To Purchase an Auto Dealer Bond?

Your state requires all classifications of vehicle dealers to be licensed.

And even with this licensing requirement, there will always be a handful of licensed dealers who financially harm their customers on a purpose to make more money.

Acts of misconduct or fraud can include:

  • Falsifying a vehicle title to make a sale
  • Fail to transfer a title correctly
  • Lying out the condition or milage of a vehicle
  • Steal from customers deposits
  • Fail to pay sales tax on vehicles sold

It's because of these "fraudulent dealers" that your licensing agency requires every dealer to purchase a surety bond before legally selling in the state.

Need Help? Call Us Today

Talk to a bond specialist today. They will help you find your auto dealer bond and get you the lowest possible price. 1-800-608-9950


How Can You Save Money Buying an Auto Dealer Bond?

The price (or premium) of an auto dealer bond is determined by a surety.

A surety is an insurance company that underwrites surety bonds. (Not all insurance companies provide surety bonds.)

Every surety does their own assessment when providing a price for an auto dealer bond.

This means prices will be different from one surety to the next.


How Is Price Determined?

For auto dealer bonds (except Ohio), the surety will consider:

  • Credit of the owner or owners
  • Industry and business experience
  • The history of customer claims against dealers in your state

(If you're an Ohio dealer, we've secured a low fixed price for your required $25,000 dealer bond.)

Because the price quoted by each surety will be different, using a specialized surety agency like Surety Bonds Direct can help you save money.


How to Potentially Save Hundreds of Dollars

We work with our network of proven, A-rated sureties to price shop for you and find the lowest possible price.

The best part is, you're under no obligation to purchase once we find you pricing.

You have nothing to lose to have us get you pricing and see how low of a price you can get.

We've saved our customers hundreds of dollars when purchasing their auto dealer bond.

This is money you can use to pay:

  • Application fees
  • Examination fees
  • Additional insurance costs like liability insurance
  • For dealer plates
  • Getting your dealership sign made
  • Other fees or costs to get your business up and running

Request a Free Price Quote Today

Let us price shop for you and find the lowest possible price.
This costs you nothing and there's no obligation to buy once you get pricing.

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Purchasing an Auto Dealer Bond Is Easy

If you agree to the low price we'll found you, purchasing your auto dealer bond is as easy as completing an online checkout form.

After a successful purchase, our issuance team will:

  • Prepare the correct bond form
  • Collect the necessary signature
  • Ensure the seals are in place
  • And provide the power of attorney

Some auto dealer bonds must be physically mailed to you so you can turn in the original bond with your application.

Most auto dealer bonds can be emailed to you so you can submit a copy of the bond with your application.

Let Us Manage This Process For You And Save Your Money!

If this is your first time purchasing an auto dealer bond, this process may be new to you.

Let's us manage everything for you so:

  • You do not overpay for your auto dealer bond
  • You can get the process done quickly and correctly

Click here and choose your state to get started.

If you're unsure of the bond you need, fill out our free online quote form and provide as much details as you can.

Our system will find the bond you require or a bond specialist will call you can help you get this process done.


See More Surety Bond FAQ

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Can't find what you're looking for? Let us help!

Get Started » or, if you'd prefer, call us at 1-800-608-9950
(No obligation, takes 2 minutes)