Idaho Auto Dealer Bond

Depending on several factors, the price you will pay for your dealer bond will vary. First, you need to know what the required total bond amount is for the type of license you will get. For example, if you’re a retail dealer, this means you need to secure a $20,000 auto dealer bond.

However, the $20,000 amount refers to the maximum coverage that can be extended to claimants, not the sum required upfront from dealers. Instead, you can think of a surety bond as a line of credit given to your dealership by the bonding company. In exchange for that, the bonding company receives an annual premium from you. This premium is only a few percentage points of the total bond amount.

Your premium is most strongly determined by your personal credit score.

If you want to include other factors in your application, you can. For example, demonstrating strong financials, or that you have a number of years experience in the industry, can certainly help in reducing your premium.

Our What Does a Surety Bond Cost? page contains more valuable information on the topic of bonding costs.

Luckily, the answer is yes. We have a bad credit surety bonds program, especially designed to help our clients who have bad credit or are experiencing other credit issues, such as tax liens or civil judgments.

Since bonding companies assume a higher risk when underwriting bad credit surety bonds, they request higher premiums: in the range of 5% to 10% of the total bond amount. Still, taking steps to increase your credit score or improve your financials can reduce your premiums when bond renewal is due.

Applying for you Idaho auto dealer bond is actually an easy and straightforward process. You can apply online on our website and you’ll receive your free bond quote instantly.

Once you supply the necessary documentation and pay for your bond, it normally takes 1-2 business days to issue your dealer bond. For any questions, do not hesitate to turn to our surety bond experts for help at (877) 514-5146.

As mentioned, your auto dealer bond needs to be renewed and maintained for as long as you wish to be a licensed dealer in Idaho. Bond renewal, however, is not complicated.

If you are a client of Lance Surety Bonds, we’ll send you a bond renewal reminder well ahead of the deadline. Paying your bond renewal quote is pretty much all you need to do. You can also talk to one of our agents if you wish to take steps to reduce your premium.

A complete list of all other requirements for obtaining an Idaho dealer license are available on the website of the Idaho Transportation Department.

As a standard procedure, you will have to get a zoning approval, have your business location inspected, buy liability insurance, get a seller permit number, and pay applicable fees, among other requirements.

If you have a used-only or wholesale-only dealership, at least one of the owners need to pass a mandatory 8-hour dealer training course. Another 4-hour requirement for annual continuing education must be met when you apply for a license renewal.

As we said in the beginning, the purpose of the auto dealer bond is to protect car buyers in the state. A dealership that engages in unethical business practices or violates the bond agreement in other ways, may be faced with a claim.

The rule of thumb in a situation like this is to settle the claim out of court. Bond claims hurt your reputation and make it harder for you to get bonded. Furthermore, they can end up costing you more than a simple settlement.

If a claim is inevitable, you should keep up-to-date documentation of your communication with the claimant, so you can build a strong case in court.

Still have questions about Idaho auto dealer bonds? Call us at (877) 514-5146 and let us know how we can help!