Alabama Auto Dealer License and Bond Renewal Coming Up!
It’s time for the Alabama auto dealer license and bond renewal! September 30 is approaching fast and if you haven’t renewed your license and Alabama auto dealer bond yet, you should better get going! While not all dealers have to renew their bond at the same time as they renew their license, many dealers have their bond renewal deadline around the same time as the official yearly license renewal deadline. Here’s all you need to know about the process in a nutshell.
Renewing Your Alabama Dealer License
Alabama dealer licenses are issued by the Alabama Department of Revenue, Motor Vehicle Division on a yearly basis, starting October 1 and ending September 30. License holders must renew their license by October 31 if they wish to remain licensed and continue doing business.
This applies to all dealer licenses in the state, which includes:
- New and used motor vehicle dealers
- Wholesale dealers
License renewal applications are filed electronically through the Alabama Motor Vehicle Dealer Regulatory License Portal. License renewal instructions can be found on that same website, in case you’re not sure how to proceed. Once you submit your application, you will receive a transmittal sheet which you must print and mail to the Department, along with supporting renewal documents as specified on the sheet.
Along with your license, you may also have to renew your Alabama auto dealer bond with your surety bond agency. Here’s what you need to know about that.
Alabama Auto Dealer Bond Renewal
Without a valid bond you cannot remain licensed as an auto dealer. Therefore, the bond renewal is just as important as your license renewal. All licensees must obtain a $25,000 auto dealer bond when getting licensed initially and renew it on a yearly basis. Previously auto dealer bonds in Alabama had to be renewed around the same time as licenses. Currently, dealer bonds are continuous and valid for a year, so new businesses who have registered at a different time during the year don’t need to renew their bonds along with their licenses. For older license holders, the bond renewal deadline is most like to follow the license renewal schedule.
To renew your bond, you must pay a bond premium, which is only a small fraction of the full sum – typically, between 1%-3% of the bond amount, at standard market rates. The exact cost of your dealer bond, i.e. the rate you pay, depends on a number of financial factors, which the surety takes into account. Your personal credit score is the most important one among those. If you want to know more about bond rates, have a look at our surety bond cost guide.
Your bond cost also depends on your bonding agency. An agency like Lance Surety Bonds that works with expert sureties that are A-rated and T-listed can offer you rates on your bond that are rarely matched by other agencies.
To apply for your bond renewal or if you would simply like to request a free quote, apply online here and we will contact you within a short amount of time. You can also call us at (877) 514-5146 anytime, if you want to know more about your Alabama auto dealer bond renewal.