Montana Auto Dealer Bond Renewal is Just Around the Corner
Before they reap the benefits of the holiday season and prepare for the upcoming year, Montana auto dealers have one more important task to finish. In order to remain compliant in 2016, they need to renew their auto dealer bond by December 31st, 2016.
Let’s go through the details, and answer some of the questions you might have concerning the bond renewal.
Why should I renew my auto dealer bond?
In order to stay bonded, and in compliance with state regulations, you must renew your auto dealer bond every year. You pay in yearly premiums in exchange for the surety underwriter vouching for you, instead of paying the whole amount listed on the bond.
In accordance with state laws, you will need to renew the bond as long as you keep your Montana auto dealer license.
When should I renew my auto dealer bond?
The Dec. 31st deadline applies to all auto dealers in Montana. Even if you are a new dealer, and obtained your license sometime during 2016, it will expire at the end of the year and so will your Montana auto dealer bond.
When you file a license renewal application, you will be asked to provide the information from your auto dealer bond, meaning you have to renew the bond beforehand. For peace of mind, it’s best to start thinking about renewal now, so you’re not worrying about bonds during the busy holiday season. Many people wait until the last moment, creating delays in processing times, so you risk missing the deadline if you procrastinate.
Continuing your bond and license ensures you can use your dealer plates until February 28th of the following year.
What costs should I expect related to my renewal?
License renewal is accompanied by a $30 fee, regardless of whether you are a franchise, a used-car dealer, or a wholesale dealer.
Then comes the cost of your auto dealer bond. The total bond amount– again, regardless of the type of dealership you own– is set to $50,000. Assuming nothing drastic changed about your credit history in the past year, this year’s premium will most certainly be the same. Things like tax liens or civil judgments could raise the cost of your premium, whereas an improvement of your credit score can drive the price down.
What if I’m paying too much? Can I do something about it?
Yes. Many times surety bonds companies are willing to look beyond your credit score if they see other factors that make you a trustworthy applicant. Such a factor can be your resume, if it contains relevant experience in the automotive industry.
No less important are your personal financial statements as well as those of your business. Strong liquidity is considered quite favorably.
So what should I do to renew my auto dealer bond?
Bond renewal is not complicated at all. You can expect to receive a renewal quote by your surety agent as your deadline approaches. You fill out the form, sign it, and then the agency takes care of the rest.
Choosing to work with Lance will guarantee you don’t have to worry about next year’s renewal, as we always notify you well in advance. Unlike many other agencies, we also send out your application to many different sureties in an attempt to obtain the lowest possible bond price on your behalf.
Ready to begin? Start your application now, and rest assured about the renewal of your Montana auto dealer bond. We’ll begin by giving you a FREE online quote. For further assistance, you are welcome to contact us online or you can give us a call at (877)-514-5146.
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