Connecticut Auto Dealer Bond

There are three main types of Connecticut auto dealer licenses. Most licenses require posting a bonding amount between $5,000 and $60,000, depending on the bond.

If you want to operate as a repairer, the amount is $5,000. For leasing or rental companies, a $10,000 bond is needed. Finally, for a new or used motor vehicle dealer, the required amount is $60,000.

While these numbers might sound hefty, in reality you need to pay only a fraction of these surety bond amounts in order to get bonded. The bond amount is the largest penal sum that may be repaid to affected parties on proven claims.

Your actual surety bond cost, however, is usually between 1% and 3% of that amount, which is called the bond premium. If you need to post a $10,000 Connecticut auto dealer bond, this means your premium is likely to be between $100 and $300 if you qualify for the standard bonding market.

Your surety bond price is determined through a careful consideration of your personal credit score, personal and business finances, showcased assets and liquidity, as well as your professional experience. The stronger your business is financially, the lower your bond premium would be.

Visit our Surety Bond Cost page to get a better understanding of how your bond cost is formulated.

Obtaining a Connecticut auto dealer bond with bad credit is definitely possible, but here at Lance Surety Bonds we know how difficult it may be for auto dealers with problematic finances. That’s why we offer our Bad Credit Program, so dealers with past tax liens, civil judgments, bankruptcies, or bad credit, still have a chance to get bonded.

Bad credit bonding premiums are in the range of 5% to 10%. The slightly higher rates compensate for the increased risk, enabling you to obtain the Connecticut auto dealer bond you need.

With Lance Surety Bonds, you can trust that you’re paying the lowest possible price for your bad credit bonding. We foster connections with a number of A-rated, T-listed surety companies, so we can choose the most appropriate bonding option for your particular case.

Starting your bonding process is easy. You can just apply online for your free Connecticut auto dealer bond quote today.

For your exact bond price, you need to take one additional step, and submit the rest of the required documents. We’ll deliver your bond price in no time.

If you have any questions or need assistance with your bonding application, you can call us at (877) 514-5146. Our bonding specialists are here to help.

You can get a complete idea about the process of getting bonded here.

Along with renewing your Connecticut auto dealer license every two years, you have to renew your Connecticut motor vehicle dealer bond too. This guarantees your continuous compliance.

The perks of getting bonded with Lance Surety Bonds include a bond renewal reminder from us a few months in advance. We will contact you further if needed, so that you have enough time and opportunities to renew your bond and stay in operation.

Don’t forget that every renewal is a chance to decrease your surety bond cost. Just make sure to work on improving your financial stats and personal credit score, and you will pay less for your bond over time.

On top of providing a Connecticut car dealer bond for some types of licences, you need to submit a list of other documents in order to obtain your Connecticut car dealer license from the Connecticut Department of Motor Vehicles.

Besides completing the correct license application for your license of choice, in most cases you also need to furnish signed zoning papers, liability insurance policy and a Sales Tax Permit from the Revenue Service, among others.

The application fee for all licenses is $140. The different types of licenses cost between $340 and $700 for a two-year period.

Unlike insurance, your Connecticut auto dealer bond does not protect your business. Instead, it protects your clients and the state.

Affected individuals or entities can file a claim against your bond. If proven, they might be reimbursed up to the penal sum of the bond. The claim is initially paid by your surety. However, you need to fully compensate it soon after.

Because of the conditions of bonding, it’s always smart to avoid situations that can lead to claims. They can seriously damage your business name, as well as your financials. Getting bonded after a claim is difficult and can further hinder your dealership’s success.