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Single Source Insurance is a leading provider of Oregon state bonds. Apply online today for an Oregon Surety Bond to take advantage of our lowest rates. Quickly browse the bonds we offer for this state, or contact us for a full list.
Learn more about Oregon auto dealer bonds, and apply today. Single Source Insurance offers surety bonds nationwide through a convenient online application system.
Auto dealer bonds are a type of surety bond known as a license and permit bond. Their purpose is to ensure that all motor vehicle dealers in Oregon comply with applicable state laws governing the sale of motor vehicles.
Unlike insurance, which protects the financial interests of the insured, these bonds protect the state and consumers against financial loss resulting from the unlawful or unethical business practices of the motor vehicle dealer.
In Oregon, both motor vehicle dealers and rebuilders are required to be licensed and bonded. This is established per�Chapter 822 of the Oregon Vehicle Code. Purchasing a $50,000 motor vehicle dealer bond is a prerequisite for a dealer to obtain or renew a dealership license. Dealers selling motorcycles, mopeds, ATVs, and snowmobiles are also required to be licensed and bonded, but the required bond amount for them is only $2,000.
Dealership licenses are good for three years before they must be renewed, and there must be a valid motor vehicle dealer bond in place for the entire three years.
A surety bond contract brings three parties together, each of them with specific rights and responsibilities. The obligee mandating the purchase of the bond is the Oregon Department of Motor Vehicles, which establishes the required bond amount. The principal is the dealer purchasing the bond, and the surety is the firm that underwrites and issues the bond.
Any unethical or unlawful actions that violate the terms and conditions of the bond can result in a claim being filed against the bond. Once the surety determines that a claim is valid, it will pay the claim up to the total bond amount, but only as a courtesy to the dealer.
The surety�s payment is essentially an advance to the dealer. The dealer is legally responsible for paying all claims and must reimburse the surety. The surety may be willing to make a payment arrangement and accept reimbursement in installments.
The dealer will pay a premium that is only a small percentage of the total amount of the required bond. The surety company establishes that percentage, the premium rate, based largely on the dealer�s personal credit score, though other factors also come into play.
You can expect to pay anywhere between 0.625% ($313) to 5% ($2,000) of the bond penalty amount if you maintain good credit. Credit-challenged applicants can expect to pay more.
After you�receive your dealer bond from Single Source Insurance, you will need to sign it and mail it along with the attached power of attorney to:
Driver and Motor Vehicle Services
Business Regulation
1905 Lana Ave NE
Salem, OR 97314
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If you�re planning to operate a motor vehicle dealership in Oregon, let us help you get the auto dealer bond you�ll need in order to become licensed.
