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How Much Does an Alabama Motor Vehicle Dealer Bond Cost?
The cost of an Alabama motor vehicle dealer bond ranges from $500 to $5,000. The surety bond premium is 1% to 10% of the $50,000 surety bond required by the state.
The premium is based on several factors, including the applicant’s assets, business experience and credit scores. An applicant with a credit score over 700 qualifies for the most competitive premium rates. We provide motor vehicle dealer bonds in Alabama for applicants with scores below 599.
Applicants with a 700 or higher credit score qualify for a premium rate of 1% to 3%. With a credit score between 600 and 699, the premium rate is 3% to 5%. For credit scores below 599, the premium rate for an Alabama motor vehicle dealer bond ranges from 5% to 10%.
Surety Bond Cost Based on Credit Score |
||||
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
Alabama Motor Vehicle Dealer Bond |
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
How to Get an Alabama Motor Vehicle Dealer Bond
1. Apply for Your Bond
We make it easy to buy an Alabama motor vehicle dealer bond. Take a few minutes to complete our online application to begin the process. Numerous bond programs are available, and we have provided surety bonds to more than 99% of our applicants.
Our new customer, Julian, needed a motor vehicle dealer bond to complete his dealer license application. He quickly applied online and got an instant quote from us. Julian conveniently paid the bond premium online, and we emailed the bond to him. Now, Julian has a dealership in Birmingham.
2. Get a Quote
Our surety bond company always provides quick quotes to applicants. In fact, most of our customers benefit from an immediate quote after submitting the application online. For more complex situations, we’ll provide a quote within 48 hours.
We work with numerous bond programs. This allows us to provide applicants with competitive bond premiums.
3. Purchase Your Bond
The last step is to pay your motor vehicle dealer bond’s premium. We provide our customers with a convenient online payment option. After we receive the premium payment, we’ll email the bond to you. We can also send you the bond via mail upon request.
With your new motor vehicle dealer bond in hand, you can finalize your license application. Simply submit your bond to the state with the other required licensing documentation.
If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – contact us or call us at (877) 514-5146.
Motor Vehicle Dealer Bond Requirements in Alabama
An Alabama motor vehicle license is required for all new and used motor vehicle dealers. It is also required for auto rebuilders, wholesalers, motorcycle dealers and trailer dealers. A $50,000 motor vehicle dealer bond is required to apply for and maintain a license. Without a bond, the license will be suspended.
In Alabama, all licensed motor vehicle dealers must be designated agents of the Alabama Department of Revenue. The motor vehicle dealer surety bond satisfies the bond requirement for this designation.
The Alabama dealer surety bond runs continuously until it is canceled. To maintain the motor vehicle dealer license, a new surety bond should be provided to the Department of Revenue before the current bond’s cancellation date.
The obligee for the motor vehicle dealer bond is the Alabama Department of Revenue. It must be signed by the surety bond company’s agent and by all principals. The motor vehicle dealer licensing and bond requirements are established by the Code of Alabama 1975, Sections 40-12-1390 to 40-12-400 and 40-12-264.
How to Renew & Maintain Your Motor Vehicle Dealer Bond in Alabama
The motor vehicle dealer bond in Alabama runs continuously, so it remains in effect until it is canceled. To cancel the bond, a written notice must be provided to the Alabama Department of Revenue.
If there is a lapse between the canceled bond and the effective date of the new bond, the motor vehicle dealer license will be suspended.
While the bond runs continuously, the surety bond company will collect a premium payment annually. We will notify you prior to the payment due date.
What Happens If Someone Files a Claim in Alabama?
The claimant will file the claim directly with the Alabama surety bond company. The surety company then conducts a thorough investigation of the claim to determine its validity. If the claim is not validated, the surety company denies the claim.
If the claim is deemed to be valid, the surety bond company pays the claimant up to the bond’s penal sum. After the claimant is paid, the Alabama motor vehicle dealer is responsible for reimbursing the surety bond company in full.
How to Get Your Motor Vehicle Dealer License in Alabama
The Alabama Department of Revenue is responsible for motor vehicle dealer licensing. You can also learn more from our Alabama dealer license guide.
The application form for a motor vehicle dealer license in Alabama must be submitted electronically. After submitting the application, the applicant will receive a detailed list of required documentation to complete the licensing process. Some of the requirements are:
- Liability insurance: $25,000 bodily injury per person per accident, $50,000 combined bodily injury per person per accident and $25,000 for property damage per accident (for a combined limit of $75,000 per accident
- A $50,000 surety bond (the bond form is provided to applicants after the application form is submitted)
- Fees:
Alabama Motor Vehicle Dealer License Fees |
|
Master Dealer License |
$125 |
Each additional place of business |
$5 |
Off-Site Sales License |
$25 |
Master Off-Site Sales License |
$25 |
Additional information is available by contacting:
Alabama Department of Revenue
50 N. Ripley Street
Montgomery, AL 36130
It's FREE. No Obligations. Approval in Minutes.
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Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!