Delaware Auto Dealer Bond

While there are different types of Delaware car dealer licenses, they all require you to post a $25,000 bond.

This is called the surety bond amount, and signifies the penal sum of the bond that can be awarded on a proven claim against you.

When you apply for your Delaware auto dealer bond, though, you do not have to pay the full bond amount. Instead, you cover only the bond premium, which is the actual surety bond cost.

The bond premium is a fraction of the bond amount, often between 1% and 3%. If you qualify for the standard bonding market, your bond cost is likely to be between $250 and $750.

How exactly is your bond premium set, then? Your surety examines your personal and business financial stats, focusing on your personal credit score, assets and liquidity, and business know-how. If your business is financially stable, you can expect a lower bond price, because the risk involved in bonding you is lower.

You can learn more about the formulation of your surety bond cost here.

At Lance Surety Bonds, we have extensive experience getting auto dealers bonded across the country. We know just how tough it can be to obtain an Delaware auto dealer bond you need when your finances are far from perfect. Our Bad Credit Program is here to help.

If you have a low credit score, past tax liens, civil judgments or bankruptcies, we offer bond premiums in the range of 5%-10%. The increased cost mitigates the higher risk that bad credit bonding poses. This program is a great option for dealers with problematic finances.

With Lance Surety Bonds, you get some of the best bonding rates on the market. As we foster close connections with a number of A-rated, T-listed surety companies, we can choose the right bonding option for your specific circumstances.

Getting your Delaware motor vehicle dealer bond has never been easier. Just apply online today for your free Delaware auto dealer bond quote.

Once you’re ready to complete your bonding, you only need to submit the required documents. We’ll contact you with your exact bond price as soon as possible.

You can always reach us at (877) 514-5146 if you have any questions, or need help with your application.

Learn more about the bonding process if you’d like to get the complete picture.

Your Delaware auto dealer bond is continuous, so you need to renew it together with your Delaware car dealer license before December 31st of each year.

If you obtain your bond from Lance Surety Bonds, you can count on us for reminding you about your bond renewal. We’ll make sure to send you a renewal reminder well in advance, and if necessary, we will contact you further. This way, you can be sure you will not miss the renewal deadline, so your license will stay valid.

Every bond renewal is an opportunity to reduce your surety bond cost. If you manage to improve your credit score and overall finances, you could see a lower price the next time you apply for your Delaware car dealer bond.

Applying for a Delaware dealer license includes a few more steps besides obtaining a Delaware auto dealer bond.

You need to submit to the Delaware Department of Motor Vehicles a completed dealer application, together with insurance policy certificates, zoning papers and a criminal background check, among others. Most license fees are $100, and wholesalers need to pay $75 additionally. Dealer plates cost $10.

Getting bonded is not difficult, but it’s imporant to remember the purpose of bonds, so you can avoid tough business situations. Your Delaware auto dealer bond is not like insurance for your dealership– instead, it’s protection for your clients and the state.

Affected parties can file a claim against your bond in case you engage in fraud, misuse or other unlawful activities that harm them. Proven claims are initially covered by the surety providing the bond. Shortly after, your dealership needs to assume full financial responsibility.

This means that the best approach is to avoid claims. They can harm your dealership’s reputation and bring serious financial difficulties. Getting bonded after a claim is also challenging, which hampers future operations as an auto dealer.