Reminder: Dealer Bond Renewal in New Jersey is Soon Due
If you are an active auto dealer in New Jersey, it’s once again that time of the year when you need to take steps to renew your license. An indispensable part of this process is the New Jersey auto dealer bond renewal, which is due by March 31st.
New Jersey dealer bonds and licenses expire at the same time and one is not valid without the other. As New Jersey dealers often have questions about their auto dealer bonds, we have decided to compile a short article with some frequently asked questions to make their lives easier.
Does the bond renewal apply to me?
New Jersey is among the states that impose an auto dealer bond requirement to both new and used car dealers, so the answer is yes. The bond is valid until March 31st of every year and needs to be maintained for as long as the dealer maintains their license.
What should I do to renew my auto dealer bond?
As you may remember from last year’s bond renewal, your bond is underwritten by a bond company with the help of a bond agency. So what you need to do is ask your preferred bond agency for a renewal quote (if they haven’t reminded you yet). When you sign the bond form, the agency files it with New Jersey’s DMV for you.
How much will the bond renewal cost me?
Bond premiums are a certain percentage of the total amount required by the state. For New Jersey, the amount is $50,000 regardless of the type of license you hold.
Most dealers pay similar premiums year-over-year unless factors such as financial strength or credit history change drastically. Lance Surety Bonds offers a quick way to get a quote estimate online.
I have credit issues. What can I do to reduce my premiums?
Even though your credit report is what matters the most to surety bond companies, there are other factors that also come into play in determining your premiums. The best strategy is to talk to an experienced surety agent who can help you prepare a winning application.
One thing to consider is submitting your personal and business financial statements if they are showing financial strength. If you are experienced in the automotive industry, you can also submit a CV to demonstrate that fact.
How do I know I am working with the right agency?
As we said, an experienced surety agent is perhaps the first thing you should consider when you want to lower your auto dealer bond premiums.
Agencies, such as Lance Surety Bonds, that work with a big network of reputed sureties can help a lot because they do extensive shopping on your behalf. When they find an underwriter that is willing to offer a lower quote, they will match your dealership with that specific bonding company.
When choosing bond agencies, check their rating at the Better Business Bureau (BBB) and make sure they work only with A-rated sureties, which guarantees that the DMV will accept your bond. Lance Surety Bonds offers a 100% money-back guarantee because our bonds are issued only by the most trusted sureties in the country.
You are now ready to begin your online bond renewal application. If you need additional assistance, feel free to contact one of our agents at (877)-514-5146 and they will be more than happy to help.