- Experts in bonding Vehicle Dealers
- Lowest rates in all 50 states!
- Get approved in just minutes!
- Bad credit? No problem!
Lance Surety writes more Auto Dealer Bonds than any other type of bond, so our staff is experienced with each state’s specific requirements. Due to strong relationships with many top bonding companies, we offer exclusive programs to dealers throughout the nation at prices that cannot be matched. Quoting and issuing bonds directly out of our office helps make Lance Surety the fastest way for a dealer to get bonded. Our low prices combined with our outstanding customer service will ensure you a hassle-free bonding experience!
Questions about Auto Dealer Bonds
How does an auto dealer become licensed and bonded?
Dealer license and bond requirements are established by the obligee, which is usually a state's Department of Motor Vehicles (DMV). The first thing a new applicant should do is contact their state's DMV to gather information about the state's current licensing requirements. Most states provide detailed checklists on their websites designed to simplify the process.
For learn more about dealer bonds in each state, select a state from the interactive US Map above. Our AUTO DEALER BONDS BY STATE guide allows users to view MVD bonding requirements for all 50 states, and provides other useful information such as bond amounts and obligee information.
How do I get my dealer bond?
First apply on our website for a free quote. After your application is approved, your bond agent will let you know how much your bond premium will cost and give you a formal agreement with a bonding company. Once you pay your premium and sign the contract, you will receive your bond.
To learn more about the bonding process, view our page on How To Get Bonded.
How much does an auto dealer bond cost?
Surety Bond Costs are based almost solely on the credit profile of the business owners. In most cases, applicants pay annual premium, which is a percentage of the bond amount. Dealers with excellent personal credit typically pay between 1 to 3% of the bond amount. However, customers with damaged are usually required to pay more. Bad credit programs range between 5 to 15% of the bond amount.
If I have bad credit, how can I lower my rate?
While our agency offers instant online quotes based solely on owner personal credit, it is possible to lower your bond rate by providing additional information. For example, if you have strong liquid assets and can provide cash verification, that could be used to strengthen your application. Strong business and personal financial statements can also be considered in determining your rate.
Can I use my dealer bond for multiple states?
No. Each state has their own motor vehicle dealer bond requirements. If you own dealerships in multiple states, you'll be required to be both licensed and bonded in each state with which you are operating in. Be sure to check with the obligee in each state to ensure you are operating in compliance with their respective auto dealer regulations, or contact our agency with any questionss.
How do I renew my car dealer bond?
If you become bonded with Lance Surety, you will be notified about your bond renewal up to 3 months prior to the bond's expiration date. We will provide you with the renewal invoice, which includes your renewal premium along with the payment due date. Our staff contacts all customers via US Mail, fax, email and follow up phone calls to make sure you are well aware of the pending due date for payment. As long as you pay your renewal premium by the due date, your bond will be renewed by the surety for another term.
What is a dealer bond rider?
Bond riders are simply changes to the original bond. They may include a company name change, business address change or an adjustment to the term dates. If after submitting the original bond to the obligee you are notified that a rider is required, contact your agent to have one processed immediately.
How are bond claims handled for auto dealers?
Remember, surety bonds are not insurance, but instead are more similar to a line of credit. While insurance claims are commonplace and even expected, you must take every action possible to avoid claims against your surety bond. A bond claim paid out by the surety will make it difficult for you to become bonded again in the future. Furthermore, as a bonded principal you will be required to reimburse the surety in the event that a claim is paid out. If you become aware of a possible claim, take action to resolve the situation and contact the surety's claims department for assistance.