New Jersey Auto Dealers: Renew Your Motor Vehicle Bond Before March 31st, 2015
Why Get Bonded?
As always, it’s the law. New and Used Auto Dealers in New Jersey must be licensed, bonded and insured. To renew your dealer license, you’ll be required to pay a $100 application fee, plus $257.50 for 5 dealer plates. Most importantly, you’ll need to prove that you have the proper insurance, and that you’ve posted the required $10,000 auto dealer surety bond.
New Jersey is one of the few states where these bonds expire, and must be renewed, before March 31st every year. The surety bond acts as a guarantee to your customers and that your dealership operates in total compliance with state, federal, and local laws.
What’s the Cost?
Your annual premium, the amount you pay to get bonded, will always be a certain percentage of the total bond. How much? That depends on you and your business.
Dealers with good credit, and no history of claims, pay between 1% and 3% of the total bond cost. Tax liens, civil rulings against you, and past bankruptcies can also affect the cost of your premium.
Auto dealers with a low credit score, or other indications of a checkered history, are considered high-risk applications, and are required to pay between 5% and 15% of the total bond cost. In certain cases, the surety may ask you to provide additional collateral before you can get bonded.
The Bonding Process
No matter your situation, Lance Surety Bonds can find you the best deal on your New Jersey auto dealer bond, and provide expert guidance through the bonding process. For those who have less than perfect credit, we offer an exclusive Bad Credit Surety Bond Program that will get you bonded on the lowest possible rates. Located just a few miles from the New Jersey state line, in southeast Pennsylvania, we have the expertise you need to navigate New Jersey’s bond and license requirements, and to make sure you’re always protected and in compliance.
Questions? Ready to renew your auto dealer bond? Give us a call at (877) 514-5146 today, or apply online for a free quote!