What is a Wisconsin auto dealer bond?
Posting an auto dealer bond to become a licensed auto dealer is a requirement in virtually all states. The dealer surety bond requirement is designed to protect car buyers against potential fraud or unethical business conduct.
If an auto dealer is not operating their business according to the rules, they can face a claim and owe compensation to the claimant.
Here is a quick overview of the dealer bond requirement:
Bond Name: Wisconsin Auto Dealer Bond
Obligee: Department of Transportation
Dealer & Agent Section
4802 Sheboygan Avenue, Room 201
P.O. Box 7909
Madison, WI 53707-7909
Expiration Date: Annual renewal
Ready to apply? Click on the button above to begin your online application, which only takes a few minutes to complete. You can call us at (877)-514-5146 for help anytime.
If you want to learn more, keep reading for some frequently-asked questions about Wisconsin dealer bonds.
Questions about Auto Dealer Bonds in Wisconsin
- Who needs to obtain a Wisconsin auto dealer bond?
- How much does a Wisconsin auto dealer bond cost?
- Are bad credit auto dealer bonds available in Wisconsin?
- How do I get my Wisconsin auto dealer bond?
- How do I renew my Wisconsin auto dealer bond?
- How do I get a Wisconsin dealer license?
- What happens if there is a claim against me?
Who needs to obtain a Wisconsin auto dealer bond?
Most auto dealers in Wisconsin need to obtain an auto dealer bond in order to get licensed. A different type of bond is required depending on whether you are:
- A retail dealer
- A salvage, recreational vehicle or wholesale dealer
- A motorcycle dealer
How much does a Wisconsin auto dealer bond cost?
This also depends on the type of license you wish to obtain. Each license type calls for an auto dealer bond with a different total bond amount, meaning the maximum coverage that can be extended to claimants.
All auto dealer bonds are paid in annual premiums, which are a few percentage points of the bond amount. For good credit applicants, premiums rarely exceed 3%.You can get an approximation from the table below.
|Surety Bond Cost by Credit Score|
|Surety Bond Name||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Wisconsin retail dealer bond||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$5,000|
|Wisconsin salvage dealer, recreational vehicle dealer, wholesale dealer or wholesale auction dealer bond||$25,000||$188-$375||$250-$750||$625-$1,250||$1,250-$2,500|
|Wisconsin motorcycle dealer bondd||$5,000||$100||$100-$150||$125-$250||$250-$500|
Are bad credit auto dealer bonds available in Wisconsin?
We can proudly say that we get 99% of our applicants bonded thanks to our exclusive bad credit surety bonds program.
Bonding companies assume a higher risk when underwriting bad credit dealer bonds, which is why you can expect a higher premium, typically between 4% and 10%.
How do I get my Wisconsin auto dealer bond?
You can easily get your auto dealer bond using our online application. You will instantly receive a free no-obligations bond quote. Shortly after submitting your application, one of our surety agents will contact you to help you complete the rest of the application.
Issuing your bond can take as little as 1 to 2 days after we receive payment.
How do I renew my Wisconsin auto dealer bond?
Bond renewal is required once a year, but it isn’t a complicated or lengthy process. We send out renewal quotes ahead of time, so you don’t have to worry about compliance.
Unless there is a change in your credit score or financials, renewal quotes will not vary significantly from year to year.
How do I get a Wisconsin dealer license?
There are a number of important requirements besides the surety bond that you need to satisfy when you apply for a dealer license in Wisconsin. Each license type has varying requirements, but some of the common ones are:
- Having a permanent business location, which is not a residence
- Obtaining a local and zoning approval
- Getting a sales tax permit
- Placing a business sign which is visible and displays hours of business
- Pay applicable fees
- Submit a background check showing you are of good character
What happens if there is a claim against me?
Having a claim filed against your dealer bond is something you should avoid as much as possible. This involves being up-to-date with all industry regulations and state laws. You should also be diligent when it comes to training your staff.
Despite your best efforts, a customer may still choose to file a claim if they feel they have been wronged. If you can’t settle the claim out of court, you should make sure your documentation is impeccable, so you can defend your case in court. Every contact with the client should be well-documented, so if you are in the right, you can avoid paying a costly claim.
If the claim is proven after all, you will have to compensate the claimant for a sum that doesn’t exceed the total bond amount of the surety bond you posted.