Georgia Auto Dealer Bond

Used vehicle dealers and used parts dealers have to present a bond to the State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers in order to obtain a Georgia auto dealer license. The bond amounts required vary by license type. The bond forms must be submitted with attached Power of Attorney document.

Dealers of used vehicles have to renew their bonds by March 31st of each even-numbered year. As for used part dealers, the renewal deadline is December 31st of every odd-numbered year.

The Georgia dealer bond guarantees your compliance with the state Rules and Regulations, Department 681. It ensures you will operate in accordance with the law and that you will cover any loss or damages from potential fraudulent representations or breach of warranty you may commit.

Used car dealers in Georgia need to post a $35,000 bond. If you want to sell used parts, you need a $10,000 bond.

The bond price you have to cover is formulated on the bond amount that you have to obtain. This is called the bond premium. It is only a percentage of the bond amount, often between 1% and 3%. For a $35,000 bond, your premium may be as low as $350-$1,050.

What exactly will your bond price be? This depends on your finances. Your surety has to examine the level of risk involved in the bonding, so that it can calculate the premium. It considers your credit score, business financials, and other assets or liquidity you can showcase. Your professional experience may also be taken into account. If you are seen as a solid applicant, you can expect a lower bond cost.

For a full description of how your bond price is set, you can review our surety bond cost page.

It’s possible to get your dealer bond even if your finances are problematic. At Lance Surety Bonds, we run our Bad Credit Surety Bonds program to help dealers with credit score, tax liens, bankruptcies, and civil judgements obtain the bond they need.

The bonding rates are in the range of 5%-10%. This is needed in order to compensate for the increased bonding risk. As we work with a number of A-rated, T-listed surety companies, you are still guaranteed a top price with us.

Do you want to see your exact bond price? You have to complete the full bond application and send us all your paperwork, and we’ll deliver it in no time.

If you need more information on how the bonding process works, you can consult our detailed How to Get Bonded page.

Have a question or need help with your application? You can call us at (877) 514-5146 to get assistance from our bonding experts.

The purpose of your dealer bond is to protect your customers from any fraudulent activities you might engage in. In case you break the law in your operations as a bonded dealer, you can get a claim against your bond. Some situations that may lead to a claim include misrepresenting information about used vehicles for sale, or breaching warranties of sold vehicles or parts. If the case gets proven, you will have to compensate any affected parties.

The penal sum of your bond, which is either $10,000 or $35,000 in Georgia, is the maximum reimbursement that claimants may get. Your surety covers the costs initially, but you need to repay it in full afterwards. This means that bond claims are to be avoided as much as possible.