Auto Dealer/Motor Vehicle Dealer Bonds
Protecting Your Auto DealershipApply Today
If you currently operate or are interested in opening a used car dealership, state-mandated surety requirements are an important but often-overlooked part of maintaining an auto dealer’s license.
These surety bonds provide fraud protection for consumers so they can confidently conduct business with a dealership. Typically, these bonds must be in place before a state dealer’s license can be granted.
Each state has different requirements for motor vehicle dealer bonds, and it can be tough to know what you need to stay compliant.
NFP can help make it easy to secure the auto dealer bonds you need.
Helping You Meet State Requirements
- NFP's team of experts can help you navigate the individual state requirements for auto dealer bonds.
- Our team can write any type of dealer bond — auto dealer, recreational vehicle, motorcycle dealer and used car dealer.
Although there are some differences between these bonds, they all essentially serve the same purpose: to protect customers from fraud.
If you as a dealer violate certain fiduciary duties, the wronged party can make a claim against the bond to obtain compensation.
Frequently Asked Questions
Requirements vary from state to state, so check www.dmv.org to find out what is required for your own business. If you need some guidance, call our team and let us shop for you.
To become licensed and bonded as a car dealer, you need to meet certain requirements concerning the legitimacy of your dealership as a business. These requirements vary by state and sometimes county. Once you meet the specific requirements to be bonded and licensed, your next step is to complete an application for a bond.
The exact price of the bond can vary for several reasons, such as the required bond amount for your state, your own financial credentials, whether you choose to finance your premium and your business credit score.