Georgia Auto Dealer Bond

A Georgia used motor vehicle dealer bond, also known as an “auto dealer bond,” can cost as little as $350. The Georgia Secretary of State requires auto dealers to secure a $35,000 bond to do business within the state. This bond helps protect consumers and ensures auto dealers abide by all rules and regulations. 

The cost of the bond premium is often between 1% and 3% of the bond amount. One of the best ways to save money on your premium is to have a good credit score. The better your score, the less risky you are to the surety company. 

Here’s a table breaking down the cost of a Georgia motor vehicle dealer bond based on your credit score. 

1. Apply Online for Your Bond

You can fill out these details on our online form, which should only take a few minutes. We only need some basic information about yourself and your business to start processing your bond application.

We recently helped a new auto dealer in Atlanta get his bond. Despite his industry knowledge, he found the bond process overwhelming and worried about its impact on his business. Understanding his commitment to quality service, we guided him through the bond application step by step. By simplifying the process, we helped him meet Georgia requirements smoothly, ensuring a successful opening and enhancing their reputation as a reliable dealer.

2. Get the Best Quote

Typically, Georgia auto dealer bond quotes come through fast. However, depending on the complexity of the situation, you may expect a quote within 24 to 48 hours. We always guarantee your rate is the best possible option for your business.

3. Pay the Bond Premium

Once you pay the bond premium, we’ll send your bond via email. We can also send you the bond via mail upon request. Then, you can submit proof of bonding to the Georgia State Board for the Registration of Used Motor Vehicle Dealers.

Georgia only has one bond requirement for auto dealers in the state, which is to have a $35,000 motor vehicle dealers bond. However, if you’re selling used motor vehicle parts and not whole cars or trucks, you will need a separate Used Auto Parts Dealer Bond, which is $10,000. 

Finally, if you’re trying to register a vehicle without a title, Georgia requires a certificate of title bond. The amount of this bond must be twice the current market value of your vehicle, with a minimum of $5,000. 

According to the Georgia State Board, motor vehicle dealer licenses and bonds are valid for up to two years. Lance Surety will notify you in advance to renew your coverage. We will send a renewal invoice with the premium and due date. Pay by the due date to ensure your bond is renewed for another term.

Dealer licenses and bonds expire on September 30th of every even-numbered year. So, if you receive your license in 2024, it will be valid until September 30th, 2026. The new renewal period starts on July 1st and ends on September 30th.

However, if you get your auto dealer license in an odd-numbered year (e.g., 2025), it would still expire in 2026. The same rules apply to your bond as well. 

If you don’t renew your license by September 30th, you will incur a late penalty. However, you only have until October 31st to submit your renewal with the late fee. Any renewals submitted on or after November 1st will be invalid. That means you have to file for reinstatement instead.

Surety bonds are designed to provide financial protection for consumers. This means a customer can file a claim against the bond and potentially receive up to the full bond amount. 

A customer will first file a claim with the surety company and then, the surety will investigate to determine the validity of the claim. If your business is found liable, the surety will pay restitution to the claimant up to the bond amount. 

However, a bond is not like insurance. You are liable to reimburse any money paid to a claimant.

Starting an auto dealership is relatively easy to do in Georgia. Both the licensing and bonding processes are straightforward, especially if you get a quote from Lance Surety Bonds. You can run through the licensing checklist on the Georgia Secretary of State's website. This way, you can be sure you have everything ready to go before submitting all the paperwork. 

The main steps for how to get a Georgia used car dealer license include: 

• Getting your application signed and notarized. 
• Getting proper zoning for your business. 
• Obtaining a surety bond.
• Showing proof of insurance. 
• Getting photos of your business. 
• Showing proof of seminar completion. 
• Submitting to a background check. 
• Getting Inspected

Mail the auto dealer licensing documents to:

State Board of Registration of Used Motor Vehicle Dealers & Used Motor Vehicle Parts Dealers
Used Motor Vehicle Dealers Division
237 Coliseum Drive
Macon, Georgia 31217