Wyoming Auto Dealer Bond

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%.

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.

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.

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.

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.

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.