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$30,000 Bond
$20,000 Bond
$30,000 Bond
$3,000 Bond
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$50,000 Bond
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Who Is Required To Purchase a Pennsylvania Auto Dealer Bond?
Pennsylvania has the following license classifications, each with an auto dealer surety bond requirement:
- Manufacturer/Dealer
- Messenger Service
- Full Agent
- Vehicle Salvor
- Card Agent
The following table shows the bond amount for each of these license classifications. You'll learn more about the bond amount and how it impacts pricing further down this page, but this amount is the maximum amount of financial protection available to a customer or the state, it's not the price.
| License Classification | Bond Amount | Get Your Quote |
|---|---|---|
| Vehicle Manufacturer Dealer & Issuing Agent | $30,000 | Click to Get Pricing |
| Vehicle Manufacturer Dealer | $20,000 | Click to Get Pricing |
| Vehicle Issuing Agent Only | $30,000 | Click to Get Pricing |
| Vehicle Salvor | $10,000 | Purchase Now for $100 |
| Vehicle Card Agent | $3,000 | Purchase Now for $100 |
| Vehicle Messenger Service | $50,000 | Click to Get Pricing |
These amounts are set by the Pennsylvania Department of State specific to your license classification and every licensed vehicle dealer in the state must have an active surety bond on file as long as they are in business.
Get Your Bond Pricing Today
You can get pricing for your Pennsylvania auto dealer bond today. Click the button below. You need to know the amount of your bond.
Need Help? Call Us Today
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
Why is a Pennsylvania Motor Vehicle Dealer Bond Required?
The surety bond is part of the licensing process. And the licensing process as a whole is set up to help the Department of State and Transportation identify the businesses that have the best qualities to successfully operate a dealership in their community.
Besides the surety bond requirement, the licensing process includes requirements like:
- Passing required educational classes
- Having letters of character reference for all owners
- Recording the proper business formation records
- Passing criminal background checks
- Meeting certain financial standards
And of course purchasing your surety bond for your dealership location.
And as you learned above this surety bond is your legally backed guarantee that you will operate your business according to Pennsylvania law and conduct business with your customers using fair and ethical business practices.
What Specifically Does the Pennsylvania Auto Dealer Bond Protect Against?
Despite the licensing process, meeting state standards, and paying all the capital requirements, every year there will be a small handful of business owners each year who will purposefully commit some form of fraud to make more money.
These fraudulent actions can include things such as:
- Improperly transferring a title
- Selling vehicles with no title or fabricated titles
- Lying about vehicle condition, accident history, or milage
- Stealing from customer deposits
- Failing to record all vehicle sales or failing to pay the correct amount of sales tax
If a dealership is suspected of these actions or similar actions, a claim can be placed against their surety bond for financial compensation. After an investigation, if the claim is valid, the surety bond will pay out financial compensation for a portion or all of the claim amount.
The limit of any one claim or multiple claims is capped at the specific bond amount for that license classification.
How Much Does a Pennsylvania Auto Dealer Bond Cost?
The price to purchase your auto dealer surety bond will depend on the type of license and the bond amount.
Auto dealer surety bonds are underwritten by a specialized insurance company called a surety. Every surety is different in how they weigh and assess an applicant, but they all will determine a rate.
This rate multiplied by the bond amount is the price you'll pay for your bond.
The factors they use to determine this rate include:
- The personal credit of the owner or owners
- Dealership experience and industry experience
- Any prior bond claims if you've had a dealership in the past
How To Pay As Little As Possible For Your Dealer Surety Bond
We are Surety Bonds Direct, your surety agency. We work with the highest A-rated sureties that specialize in motor vehicle dealership businesses.
Because every surety performs their own assessment of an applicant, the rates they come back vary by 1 to 3 percentage points.
This difference in rates is how you can save hundreds of dollars when purchasing your surety bond.
Here are some price examples using the $20,000 bond amount so you can see this difference. Pay attention to how the price changes for each rate.
| Bond Amount | Surety Bond Rate | Price You Pay |
|---|---|---|
| $20,000 | 0.5% | $100 |
| $20,000 | 1% | $200 |
| $20,000 | 2% | $400 |
| $20,000 | 3% | $600 |
| $20,000 | 4% | $800 |
| $20,000 | 5% | $1,000 |
When you purchase your bond, it's one payment for your bond term or 12 months.
You do not have to wait until you're ready to submit your application to purchase your surety bond. In fact, it's ideal to get this requirement done in the beginning of the process.
You can get your price quote today and all price quotes are good for 30 days. Plus when you purchase your bond you can set the activation date for when you plan on submitting your license application.
Click here and start the online quote process. It takes 90 seconds to submit your request.
If you prefer to speak with a bond specialist, you can call 1-800-608-9950.
Having a bond specialist secure pricing for you costs you nothing and there is zero obligation to purchase the bond once you receive the pricing.
You have nothing to risk by getting a quote . It can save you hundreds of dollars.
Vehicle Salvors and Card Agent Surety Bond Pricing
If you're obtaining a vehicle salvor or card agent license, you can purchase your surety bond today with no credit check.
Because these bond amounts are small and the historical amount of fraud associated with these licenses is so low, we can get you immediate pricing.
These prices are as follows:
| Bond Term | Savings | Click to Purchase |
|---|---|---|
| 1 year bond term | -- | $100 for 1 year |
| 2 year bond term | $25 | $175 for 2 years |
| 3 year bond term | $50 | $250 for 3 years |
Again, when you purchase your bond, it's one payment for your bond term or 12 months.
What Happens After You Purchase Your Vehicle Dealer Bond?
Purchasing a surety bond is easy. You just complete an online order form or complete the purchase of the phone.
After your payment is processed, our bond issuance team will work on issuing your bond with the correct information including the:
- Correct bond form required by the Department of State
- Required signatures and seals
- Power of attorney
Your surety bond will have to be mailed to you. The Department of State requires the original surety bond form.
Keep in mind, this will add an additional 3 to 5 business days to this process because of shipping. And this is another great reason to check-off the surety bond requirement when you start your application process. That way you'll have your bond done and ready to go.
Renewing Your Auto Dealer Bond
As we've mentioned, your bond will expire one year from the active date you choose when you purchased your bond.
At this one year mark is when you'll need to renew your bond to keep it active for the following 12 months.
The process is easy. Renewing only requires paying the renewal premium. Your bond specialist will reach out to you 30 to 45 days in advance of your renewal date to make paying the renewal premium easy.
Once you pay the renewal premium, your bond remains active.
You won't be issued a new bond because the initial bond you filed with the state will remain active automatically. This is referred to as a continuous bond.
Get Your Bond Pricing Today
You can get pricing for your Pennsylvania auto dealer bond today. Click the button below. You need to know the amount of your bond.
Need Help? Call Us Today
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
Motor Vehicle Dealer Bonds And Getting Your Pennsylvania Business License/Registration
Getting licensed is a little different depending on the specific license you're applying for, but they tend to share the same high level steps including:
- Initial requirements to qualify for dealership licensing
- Complete the dealership application
- Make sure your business is registered with the Secretary of State
- Complete the required criminal background check
- Purchase the auto dealer bond
- Have a detailed security plan for your dealership
- Prepare and pass the dealership location requirements
- Have a credit reference from your business' bank
When it comes to your dealership's surety bond, it is best to get pricing now and purchase it so you're not rushing at the last minute.
From the moment you request pricing, it only takes 1 to 2 business days to have your bond in the mail, and an additional 3 to 5 days for delivery. You can expedite shipping, but it's an additional $35, not worth the cost. Get your bond today.
Click here and start the online quote process. It takes 90 seconds to submit your request.
If you prefer to speak with a bond specialist, you can call 1-800-608-9950.
Additional Pennsylvania Motor Vehicle Dealer Bond Resources & Links
Your dealership application requires a surety bond called an auto dealer bond. Learn what this bond is and how to buy it for as little as possible!
What's a Surety Bond And Why Is It Required?
This short video will break down what a surety bond is so you understand why it's required and how much it will cost.
How to Get a Motor Vehicle Dealer's License
Thinking about opening your own car dealership? Learn about how to navigate the process, get your bond, and get your license.
Can't find what you need?
Let our bond experts help!
Get Started »
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