Attention, Oklahoma Dealers: Get Your Surety Bonds Renewed On Time

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Oklahoma dealers might be busy preparing for the holiday season when sales are expected to rise but they shouldn’t lose focus from the important deadline that is coming at the end of the year. The state mandates that dealer license must be renewed before December 31st each year. The Oklahoma auto dealer bond, without which the license is not valid, also needs to be renewed before the same date.

We give you some useful tips on how to best approach bond renewal that can also save you some money.

Do all dealers need to renew their bond?

No. Oklahoma is one of the few states that don’t require all car dealers to obtain a surety bond. The requirement applies to wholesale and used-car dealers only.

The auto dealer bond is set in place to protect dealership’s customers in case they use fraudulent business practices. Make sure you understand how surety bonds work in order to protect your business from claims.

What is the deadline for the surety bond renewal?

A proof of a valid bond must be presented before December 31st which is when your old one expires. But take it from us: it’s always best to start your renewal application early.

Sometimes the end of the year is a busy time for institutions, which may cause delay in processing times. There’s a risk that you might miss your deadline which means you will start 2017 without being legally allowed to operate as a dealer.

What do I have to do to renew my dealer bond?

By now you should have been reminded by the surety agency you worked with that it is time for a bond renewal. How it works is that the agency will give you a renewal quote and the relevant bond form. When you sign it, the surety will file it with the state for you.

Since there is still time until the final deadline, it would be wise of you to look for an agency that can get you a lower bonding rate. Just be careful because some agencies do what is known as hard credit pulls which can damage your credit score.

Lance Surety Bonds only does soft credit pulls and you can get a FREE online bond quote without any negative consequences for your credit.

How much do I have to pay for the bond renewal?

Surety bond costs are something that you need to understand well so you can make an informed decision. Every bond has a total bond amount determined by the state and a premium paid by the bonded individual, which in the case of Oklahoma auto dealer bonds can be between 0.75% and 10%.

The total bond amount is $25,000 for both used-car and wholesale dealers. Your individual premium might be the same as what you paid at the end of 2015 unless your credit score or something about your credit history changed.

I have bad credit. Does that mean I cannot get a bond renewal?

In 99% of cases the answer is no. If your credit score got worse over the last year, your premium will surely be higher but the credit score alone shouldn’t prevent you from renewing your Oklahoma dealer bond.

We can even offer some tips which many agents may not tell you about. Did you know that surety bonds companies look favorably upon you if you demonstrate strong financial statements and if you have been in the industry for a while? Add these two things to your application and your premiums should definitely go down. And most importantly: choose a bonding agency you can trust.

Why Choose Lance Surety Bonds

Lance Surety Bonds is an experienced bonding agency that guarantees that you get the lowest rates. How do we do that? We send out your application to as many bond underwriters as possible and choose the one that offers you the best premium. Our partnering sureties have been handpicked and feature only companies which are A-rated and T-listed – this guarantees the state of Oklahoma will never reject your bond.

We offer very fast approval, electronic submission of your bond and online applications which save you time.

Feel ready? Get a FREE online bond quote from us and our agents will smoothly take you through the whole process of renewing your Oklahoma auto dealer bond. We are looking forward to working with you!

 

 

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.