Iowa Increases Motor Vehicle Dealer Bond by $25,000
The present $50,000 bond requirement for motor vehicle dealers in Iowa will increase to $75,000 due to SB 2228. The department of Transportation will start electronic processing of motor vehicle registration and titling by 7/1/2018. A motor vehicle dealer may charge up to $180 to complete title and registration. This can lower to $155 when electronic processing is enforced. This is part of the price of a vehicle and must be disclosed. Failure to do so is a violation of the Consumer Fraud Act (Iowa Code 714.16).
Additionally, The House amendment adds SF224 protects consumers, levels competition for dealers, and aids law enforcement by addressing proper licensing for dealers, and wholesalers by adding adverting to matched businesses (manufactures, distributors, wholesalers, and dealers). It doesn’t allow motor vehicle dealers or wholesalers from working off another dealer’s license. Lastly, anyone convicted of three or more violations within a 3 year period will not be allowed for 5 years from being an owner, salesperson, employee, officer of a corporation, or representative of a license dealer. For more information, visit the website of the Iowa Senate.
If you are located in Iowa and are being required to have this bond, or would like additional information Lance Surety Bond Associates, Inc. can write this bond for you! You can complete our online application, or call 877-514-5146 and speak with one of our knowledgeable and friendly representatives today!
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