Arizona Auto Dealer Bond

If you are an automotive recycler, you need to post a $20,000 Arizona auto dealer bond. For brokers, wholesale auto auction dealers, and wholesale motor vehicle dealers, the required bond amount is $25,000. Finally, new and used motor vehicle dealers and public consignment auction dealers in Arizona must post a $100,000 bond.

Arizona auto dealers shouldn’t be alarmed by these surety bond amounts. In fact, you need to pay only a fraction of your bond amount to get the Arizona auto dealer bond you need. The full amount simply represents the maximum penal sum that affected parties can claim on your bond.

Your bond price– if you qualify for the standard bonding market– is usually between 1% and 3% of the bonding amount, called the bond premium.

For a $25,000 Arizona motor vehicle dealer bond, you might pay between $250 and $750.

How is your surety bond cost formulated? Your surety provider examines your personal credit score, business assets and liquidity, financial history, and business experience. Based on these factors, it evaluates the risk that getting you bonded poses. The lower the risk, the less you will pay for your bond.

If you are an Arizona car dealer with problematic finances, you might have a hard time getting bonded. Because of our extensive experience in providing auto dealer bonds across the country, we know how frustrating this can be. Our Bad Credit Program is here to change this.

Dealers with problematic finances, past tax liens, civil judgments, or bankruptcies can get bonded at rates between 5% and 10%. The higher premiums compensate for the increased risk. Still, the program enables dealers with lower credit scores to stay in business, and improve their finances with time.

Here at Lance Surety Bonds, we’re committed to offering the best bonding rates. Our close partnerships with numerous A-rated, T-listed surety companies allow us to select the best bonding option for your particular situation.

Apply online today for your free, no-obligations Arizona auto dealer bond quote. Once you complete your full application, we will send you your exact bond price.

Our bonding experts are available to answer your questions about the bonding process or about your application. Just call us at (877) 514-5146 and we’ll be happy to assist you.

For more information on bonding, you can consult our How to Get Bonded page.

Just like your Arizona car dealer license, your bond needs to be renewed every year. This ensures your legal compliance.

When you get bonded with Lance Surety Bonds, you can rely on us to send you a renewal reminder a few months in advance. You will have plenty of time to get the process started. If necessary, we will contact you further to make sure you do not miss your deadline.

Every renewal is a chance to decrease your surety bond cost. If you have the opportunity to improve your credit score and overall finances, you can expect to pay less for your Arizona auto dealer bond the next time around.

Besides obtaining an Arizona motor vehicle dealer bond, Arizona auto dealers need to complete an application, and send it together with all required documents to the Arizona Motor Vehicle Division’s Dealer Licensing Services.

The list of requirements includes a criminal background check, your Buy/Sell Agreement if you are buying a dealership, a certificate of appointment if you will be selling new cars, business office papers, articles of incorporation or partnership agreement and fingerprinting. The yearly license fee is $100.

If you haven’t been bonded before, you should remember that surety bonds do not work like insurance for your dealership.

The function of Arizona auto dealer bonds is to safeguard your clients from any misuse or fraud on your side. Engaging in such actions means you might face a claim on your bond by an affected party.

Proven claims pose a serious threat to your dealership’s success. The claimants may be reimbursed up to the penal sum of the bond. Your surety pays this initially, but soon after you have to repay it. Thus, your business might end up with a big financial loss and a damaged reputation.