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

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.

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%.

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.

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.

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

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.