What Is a Utah Auto Dealer Bond?
The Utah auto dealer bond is one of the most important requirements for getting your Utah dealer license.
The dealer bond, just like other auto dealer bonds, is a form of protection for the state of Utah and its citizens. It guarantees your compliance with state regulations governing your trade.
Your surety bond works like a contractual agreement between three parties. Your dealership is the principal of the bond, and the licensing authority is the obligee. The surety is the bond underwriter that guarantees for your dealership.
- Surety Bond Name: Utah Auto Dealer Bond
- Surety Bond Amount:
- $75,000 for new or used motor vehicle or large trailer dealers
- $10,000 for motorcycle or small trailer dealers
- Obligee: Utah Motor Vehicle Enforcement
- Required Expiration Date of the Bond: Expires when your license does
Questions about Auto Dealer Bonds in Utah
How much does a Utah auto dealer bond cost?
Depending on the type of Utah dealer license you need, your dealer bond can be either $10,000 or $75,000.
This surety bond amount is the largest compensation that can be repaid on proven claims against your bond.
The bond premium, on the other hand, is only a fraction of this amount and is the surety bond’s actual cost for you.
The typical percentages for standard bonding applicants are between 1%-3% of the bond total. For a $75,000 bond, your premium can be as low as $750.
|Surety Bond Cost by Credit Score|
|Type of License||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Utah motorcycle or small trailer dealers||$10,000||$100-$150||$100-$300||$250-$500||$500-$1,000|
|Utah new or used motor vehicle or large trailer dealers||$75,000||$562,5-$1125||$750-$2,250||$1,875-$3,750||$3,750-$7,500|
Your surety bond cost is formulated on the basis of a detailed analysis of your financial situation. Your surety examines your personal credit score, assets and liquidity, and professional experience. If these indicators are stable, you are likely to get a lower price.
Can I get a Utah auto dealer bond with bad credit?
Getting bonded with problematic finances is still possible with our Bad Credit Program. If you have a low credit score, past tax liens, civil judgments, or bankruptcies, you can take advantage of this program, and get bonded at premiums in the range of 5%-10%. The slightly higher cost compensates the higher risk, but still allows you to get the Utah auto dealer bond that you need.
Whatever your credit score is, with Lance Surety Bonds you can get bonded at top rates. Due to our close relations with a number of A-rated, T-listed surety companies, we can always provide you with the best bonding option for your situation.
How do I get my Utah auto dealer bond?
Apply online today for a free Utah auto dealer bond quote to start your bonding process. You can receive your exact quote in no time after submitting the full application, together with all needed paperwork.
Our bonding experts are here to help for any questions you might have. Don’t hesitate to give us a call at (877) 514-5146.
Need more information? You can find a full overview on our bonding process page.
How do I renew my Utah auto dealer bond?
As a major prerequisite for your Utah dealer license, it’s important to keep your dealer bond active, so that you can stay in business. When renewing your license every year, you also need to renew the Utah auto dealer bond.
By getting bonded with Lance Surety Bonds, you don’t need to worry about bond renewal deadlines. We will send you a renewal reminder well in advance, so you can go through the process in time.
Every time you renew your bond, you can lower the bond cost. If your finances have improved over the last year, you can expect to pay less.
How do I get my Utah auto dealer license?
To get licensed, you need to submit a complete application with the Utah Motor Vehicle Enforcement. Besides completing the form, you will have to provide proof that you meet all criteria in terms of zoning, business documents, training, sales tax license, and bonding, among others.
You also need to cover the applicable license fees depending on the license type, as well as dealer plates.
By going through the licensing process, state authorities ensure that you meet all criteria defined in the Utah Motor Vehicle Business Regulation Act.
How are bond claims handled for auto dealer bonds?
It’s important to remember that unlike insurance, your Utah auto dealer bond does not protect your business. Instead, it guarantees that your clients’ interests will be safeguarded.
In case your dealership business does not follow state rules, a bond claim can be made on your bond. The harmed party can get a reimbursement up to the penal sum of the bond.
That’s why claims can be a big financial issue for your company. At first, your surety will cover the costs, but you are liable to repay it. Sticking to the statutes set in your bond is paramount for avoiding potentially harmful claims.