Hawaii Auto Dealer Bond

There are three main types of Hawaii auto dealer licenses that require obtaining a bond. Depending on which one of them you need, you’ll have to post a bond that ranges from $10,000 to $200,000.

• New car dealers who sell less than 10 vehicles per month - $50,000
• New car dealers who sell more than 10 vehicles per month - $200,000
• Used car dealers who sell less than 10 vehicles per month - $25,000
• Used car dealers who sell more than 10 vehicles per months - $100,000
• Motorcycle or scooter dealers - $10,000

Some of these surety bond amounts are considerable, but remember that you need to cover only a fraction of these sums to get bonded. The bonding amount is the maximum penal sum that can be paid on proven claims.

Your bond premium is the bond price, which is often between 1% and 3% of the bond amount. Thus, for a $25,000 Hawaii auto dealer bond, you’ll need to pay between $250 and $750 if you qualify for standard bonding.

How exactly is your bond premium set? The surety makes a thorough examination of your personal and business finances. Your personal credit score is a major factor, but your overall financial stats, assets and liquidity, and business experience are also considered. Your surety bond cost is lower when your business is in good shape, as the risk of getting you bonded is lower.

Learn more about the way your surety bond cost is formulated here.

While getting bonded with bad credit can be tough, with Lance Surety Bonds’ Bad Credit Program you can still get the bond you need. We’ve been providing auto dealer bonds across the country, so we know how difficult it can be for auto dealers with problematic finances. We’re here to help.

Usually, bad credit bonding premiums are between 5% and 10%. They are higher in order to mitigate the higher risk. While the bond price will be more expensive, the program offers Hawaii car dealers the high-quality bonds they need, even if they have a low credit score, past liens, bankruptcies or civil judgments.

Lance Surety Bonds works with numerous A-rated, T-listed surety companies. This gives us a lot of flexibility and many bonding options to choose from, so we can select the most appropriate one for your situation. You’re guaranteed to get a top bonding rate with us.

Obtaining your Hawaii auto dealer bond doesn’t have to be a hassle. You can apply online today for your free Hawaii dealer bond quote and get it in no time.

We can estimate your exact bond price once you’ve completed your full bonding application and submitted all needed documents. Auto dealer bond applications are usually processed quickly, so your licensing process won’t be slowed down.

For any questions about the process or your application, call us at (877) 514-5146. Lance Surety Bonds’ bonding experts are here to help.

You can learn more about how to get bonded here.

Your Hawaii auto dealer license needs to be renewed before June 30 of every even-numbered year. At the same time, you need to renew your Hawaii car dealer bond too, so you stay in compliance.

When you get bonded with Lance Surety Bonds, you won’t need to worry about missing your renewal deadlines. We’ll send you a bond renewal reminder well in advance, so you have time to prepare. If needed, we’ll contact you again to make sure you renew your bond on time.

With every renewal, you get the opportunity to reduce your surety bond price. As your finances change over time, so does your bond premium. Improving your credit score and overall stats can usually decrease your bond cost.

Applying for your Hawaii auto dealer license means obtaining a Hawaii car dealer bond, and providing a range of other documents. The licensing authority in the state is the Department of Commerce and Consumer Affairs’ Professional and Vocational Licensing.

You must submit a completed dealer application, together with a rental or lease agreement, financial statements, entity registration papers, self-inspection reports, photographs of your business location, and payment of fees, among others.

It’s important to differentiate between your insurance and your Hawaii auto dealer bond. Your bond does not protect your business. Instead, it safeguards the interests of the state and your clients.

If you fail to act on your obligations under the law, you can face a claim on your bond. Affected parties can ask for a reimbursement up to the penal sum of the bond. If the claim is proven, your surety will provide the compensation at first. However, according to the bond statute, you’re required to repay it in full afterwards.

It’s apparent that bond claims can turn into damaging situations for your dealership. Avoiding them is the best course of action, as they can lead to serious financial losses, problems with your business reputation, and inability to get bonded in the future.