What is a Wyoming Auto Dealer Bond
If you are new to the dealership industry, you may not know what an auto dealer bond is or why they are required. Like many surety bonds, auto dealer bonds are designed to safeguard consumer interests. To get licensed, each auto dealer in Wyoming needs to post an auto dealer bond
An auto dealer bond is a type of surety bond, which means it’s a three-sided agreement between: a principal (the auto dealer), an obligee (the state) and a surety bond company (the underwriter of the bond). In case a dealer commits fraud or engages in unlawful practices, a claim can be made against their bond, so the consumer can be compensated financially. You cannot get a Wyoming dealer license without the relevant dealer bond as well.
Here is an overview of the dealer bond requirement in Wyoming:
Surety Bond Name: Wyoming Motor Vehicle Dealer Bond
Surety Bond Amount: $25,000
Obligee: Wyoming Department of Transportation 5300 Bishop Blvd Cheyenne, WY 82009
Expiration Date: Yearly renewal
Important: Both new and used car dealers need to provide an auto dealer bond prior to getting licensed.
Ready to apply for your Wyoming auto dealer bond? You can do so through our online application. If you want to learn more about this type of surety bond, you can consult the Questions section below.
Frequently Asked Questions
How much does a Wyoming auto dealer bond cost?
The price of your Wyoming auto dealer bond depends on several factors. It’s important to understand that you are not required to pay $25,000 to get it. Instead, $25,000 is the total bond amount, which refers to the maximum penal sum of the bond. In other words, if someone files a successful claim against your bond, they may receive compensation up to $25,000.
To obtain the bond you pay only a bond premium, determined by your bond provider. Surety bond companies consider your personal credit score as the most important factor, and they will conduct a credit check to verify it. If your credit score is good, you can expect a rate of between 1% and 3%.
|Surety Bond Cost Based on Credit Score|
|Surety Bond Name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Wyoming Motor Vehicle Dealer Bond||$25,000||$188-$375||$250-$750||$625-$1,250||$1,250-$2,500|
Can I get a Wyoming dealer bond with bad credit?
If your credit score is less than perfect or you have other credit issues, such as tax liens or civil judgments, you are considered a high-risk applicant. Getting bonded is still possible, though at a highly higher rate– between 5% and 15%. Surety bond companies usually consider additional factors that can reduce your bond premium even if you have bad credit: financial statements, liquid assets, and industry experience, to name a few.
Lance Surety Bonds works only with A-rated and T-listed surety companies, which guarantees your bond will be accepted by the Department of Transportation and that you’re getting the best rates for the market.
If you want to better understand how your premium is determined, go to our “What Does a Surety Bond Cost?” Page. [/questions] [questions text="How do I get my Wyoming auto dealer bond?"]
Surety bond providers don’t issue bonds directly to the public, but work with the help of surety bonds agencies, such as Lance Surety Bonds. You can easily apply for your bond, using our online application. We’ll use your application to look for the best bond for you, on your behalf.
If you need assistance on our part, call us at (877) 514-5146. For more information on the application process, read our “How to Get Bonded” page.
How do I renew my Wyoming auto dealer bond?
Your Wyoming dealer bond is inseparable from your dealer license and must be renewed with it once a year. The expiration date of your license is also the expiration date of your bond.
Lance Surety Bonds will make sure you never miss a deadline, by sending renewal reminders ahead of the deadline. The premium you pay will likely be the same, unless there is a change in your credit score, personal finances or other factors. Talk to one of our agents on how you can reduce your bond renewal premiums.
How do I get a Wyoming dealer license?
Obtaining a surety bond is just one of the requirements necessary to get licensed in Wyoming. You will also have to fill out the MV-422 Vehicle Dealer and Manufacturer Application, have a Sales Tax Number, and provide some extra documentation, such as franchise papers or sales and service agreements.
Passing a criminal background check is another necessary requirement for obtaining a dealer license.
How are bond claims handled for Wyoming dealer bonds?
As with any type of surety bond, violating the bond agreement can result in a bond claim against the principal. If it’s found to be valid, you will have to compensate the claimant.
We always advise our clients to do their best to avoid auto dealer bond claims. Not only can they be quite costly, but they make it harder for you to renew your bond.
Got more bond-related questions? Feel free to call us at call us at (877) 514-5146 or contact us via email.