1. Start Your Application
2. Receive Your Free Quote
3. Buy Your Surety Bond
How Much Does an Illinois Auto Dealer Bond Cost?
The cost of an Illinois auto dealer bond starts at $500. The required bond amount is $50,000, and the premium for the bond ranges from 1% to 10%.
The cost of the auto dealer bond premium is based on the applicant’s credit score and assets. The most competitive surety bond rates available are for applicants with a 700 credit score or higher. With this score, the premium amount is 1% to 3% of the bond amount.
We issue surety bonds for applicants with lower credit scores as well. For credit scores between 600 and 699, the premium rate is 3% to 5%. For scores below 599, the auto dealer bond’s premium rate is 5% to 10%. Use the table below to learn more about the cost of an auto dealer bond.
Surety Bond Cost Based on Credit Score |
||||
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
Illinois Auto Dealer Bond |
$50,000 |
$500 - $1500 |
$1500 - $2500 |
$2500 - $5000 |
How to Get an Illinois Auto Dealer Bond
1. Apply For Your Bond
Our surety bond company has a fast and easy application process for auto dealer bonds in Illinois. Our online application only takes a few minutes to complete. We’re able to provide more than 99% of applicants with an immediate quote. Bonding is also available for credit scores below 599.
Jared contacted us with plans to open a car dealership in Springfield. To complete the licensing application, he needed a $50,000 surety bond. Jared applied online and got an immediate quote. After paying the premium, he had the necessary bond and was able to complete his licensing application.
2. Get a Quote
After submitting your application for an Illinois auto dealer bond online, you will receive an instant quote. Rates are based on credit scores as well as the applicant’s finances, such as fixed assets and liquid assets.
3. Purchase Your Bond
The premium payments for your Illinois motor vehicle bond can conveniently be made online. Once the payment is made, you will receive your bond via email. We also provide bonds via mail upon request.
Auto Dealer Bond Requirements in Illinois
Under Illinois law, auto dealerships in the state must be licensed by the state’s Secretary of State’s office. One of the licensing requirements is the purchase and maintenance of a $50,000 Illinois auto dealer bond.
According to the Illinois Secretary of State, a dealership is defined as a business that sells five or more vehicles in a 12-month period. These may be direct or indirect sales.
In addition, the definition extends to both new and pre-owned vehicles. It also includes motorcycles, manufactured homes, trailers, salvage vehicles, and dealers offering direct financing.
A dealership license in Illinois only covers one type of business. New and used vehicle dealerships are grouped together. The other types of dealerships require their own license and bond to do business in Illinois.
Auto dealership surety bonds run concurrently with the license’s term. Because it expires at the end of the year, the bond needs to be renewed annually as part of the license renewal process in Illinois.
How to Renew & Maintain Your Motor Vehicle Dealer Bond in Illinois
Illinois requires dealerships to maintain a motor vehicle bond for their first five years in business. These bonds expire annually on December 31st and must be renewed to meet the state’s requirements.
We’ll notify you before the expiration date with an updated premium. The new premium will reflect your latest credit scores and other updated factors. The premium can conveniently be paid online. The new bond should be provided to the Vehicle Services Department.
What Happens if Someone Files a Claim in Illinois?
If someone files a claim against your surety bond in Illinois, the bond company will actively investigate the claim. Through the investigation, the bond company will determine the validity of the claim.
If the customer’s claim is deemed to be valid by your surety bond company, it will pay the claimant. The maximum payment on the claim is limited to the bond’s penal sum. The principal must then reimburse the surety bond company for the full amount of the claim.
How to Get Your Auto Dealer License in Illinois
The Illinois Secretary of State's Vehicle Services Department reviews and processes all dealership licensing applications. To apply for an Illinois auto dealer license, you must provide:
- The dealer license application
- The franchise agreement
- A copy of the business lease
- Notice of Proper Zoning
- A criminal background check
- Business entity formation documents
- Proof of Illinois EPA compliance
- Proof of insurance
- A $50,000 bond
- Applicable fees
Mail your license application documents to:
Illinois Secretary of State
Vehicle Services Department
501 S. Second St., Room 069
Springfield, IL 62756
It's FREE. No Obligations. Approval in Minutes.
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What Our Clients Have To Say?
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!