Blog Posts Categorized: Auto Dealer Bonds - Page 4

Find out how licensing and bonding works for Washington state motor vehicle dealers, and apply online to get bonded today.

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Who Needs A Washington Dealer’s License?

Any person, business, or auctioneer in the state who buys or sells new or used cars, trucks, or motor homes at wholesale or retail needs an auto dealer license in Washington state. If you’re unlicensed and are buying and selling vehicles, you can sell no more than four vehicles per year that are registered to you, and cannot sell any vehicles that are not registered to you.

License Requirements

Dealers receive their licenses through the Washington State Department of Licensing and can apply online or through the mail. This entails submitting ageneral business license application�that requires information including:

• Ownership structure (LLC, sole proprietorship, corporation, etc.)
• List of all owners or members and spousal information, if applicable
• Business open date and address
• Business’s estimated gross income in Washington
• Description of products or services business offers
• Estimations of number of employees and their duties

How To Get Licensed

Applicants then complete the Vehicle Dealer/Manufacturer Addendum that asks for documentation specific to motor vehicle dealers. Before filling out the Addendum, read the included instructions to make sure you don’t submit an incomplete application�the sections of the Addendum you need to fill out correspond to the license you’re applying for. Washington motor vehicle dealers need to fill out the entire form, Sections A-G. Listed are some of the things the Department asks for from applicants:

• License/endorsement type requested
• Number of dealer plates needed (recommended three or fewer)
• List of manufacturers your dealer represents (new car dealers)
• Sales and service agreements with manufacturers�(new car dealers)
• $30,000 surety bond

This is not a complete list�consult the Department’s Dealer Checklist to make sure you include everything they need.�As many states do with dealerships, Washington has set standards for their business locations:

• Must be a commercial property
• Must have a permanently affixed sign clearly displaying the name and nature of the business
• Business records are accessible at the location
• Must have a business phone number listed in the phone book and other directories
• Must be in operation from 10 a.m. to 4 p.m. at least five days per week (additional hours of operation can be set at dealers’ discretion)
• Hours must be prominently posted

During the application’s review, a Dealer Services Investigator will inspect your business to be sure it meets these standards. Every dealership location in Washington needs its own separate license and surety bond, even if they are under the same ownership. Motor vehicle dealers can submit a vehicle sub-agency application for additional business locations.

Washington Auto Dealer�Bond

Motor vehicle dealers rely on consumers to trust them to a certain degree�buying a car is one of the biggest purchases most people ever make. Consumers have to trust that dealers are giving them a fair price on a reliable car, and having a surety bond is a good sign of a dealer’s honesty. If you’re a licensed Washington auto dealer and you violatestate law and cause financial damage to a consumer, the damaged party can file a claim against your bond. Awarded claims are paid out by the surety, up to the bond’s $30,000 liability, and must be reimbursed in full by you, the bondholder.

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When purchasing the bond, you pay a premium�a percentage of the bond amount based on your credit history. Applicants with good credit can expect to pay as little as 1-5%�of the bond amount, or�$300-$1,500.

Are you ready to get a Washington motor vehicle dealer bond? Give Single Source Insurance a call today!�

Considering becoming an Indiana auto dealer? Learn how to get licensed in Indiana, and apply online for the bond you need today.

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Indiana Dealer License Requirements

The Indiana Secretary of State (SOS) licenses auto dealers, who sell, offer to sell, or advertise for sale 12 or more vehicles in a 12-month period, including off-road vehicles, snowmobiles, and mini trucks. Some of the information their application asks for includes:

• Dealer’s DBA name
• Business’s website, phone number, email, and address
• Type of business entity
• Whether business location is leased or owned
• Owners, officers, or partners who will appear on the license
• Number of sales employees
• Number of full-time employees not in sales
• Hours of operation (at least 30 per week, or 20 and 10 hours of availability via phone)

On the application, dealers specify if they will sell new or used cars, and what types of cars and other vehicles they will sell. Their places of business must meet certain standards set by the state, and they must include photos with the application:

• Lot of at least 1,300 square feet
• Can display at least 10 vehicles
• Adequately surfaced customer parking
• Office of at least 100 square feet
• Conspicuous sign identifying the dealer and displaying hours of operation

Indiana auto dealers must include some documents with their application:

• $25,000 surety bond
• Proof of $100,000 liability insurance for bodily injury to one person
• Proof of�$300,000 liability insurance for one accident
• Proof of�$50,000 liability insurance for property damage
• Zoning Affidavit, form 55936
• Retail Merchant Certificate
• Photo ID
• Recent (last 60 days) background check�

All application and licensing forms are available on the SOS’s website. The documents, including the application, can be submitted via mail, fax, or email. After the application is reviewed, the SOS assigns an investigator to inspect the dealer’s place of business and determine if the license should be issued.

Indiana Auto Dealer Bonds

When purchasing the required $25,000 bond, dealers promise to adhere to the provisions ofIndiana Code��9-32.�Indiana auto dealer surety bonds are required in case a dealer’s violation of the Code causes damages to a consumer. For example, if a dealer misrepresented the vehicle they were selling�by lying about its condition or giving other false information�and the consumer suffered financial damage, they could seek reimbursement by filing a claim against the bond.

If an auto dealer doesn’t pay fines or fees that are due to the Secretary of State, the agency can be reimbursed by the surety. Any claims paid by the surety have to be paid back by the auto dealer.

Ready to get an Indiana auto dealer surety bond? Need garage liability insurance? Single Source Insurance can get you bonded and insured today!

Virginia motor vehicle dealers need to be licensed and bonded, as do dealers in most states. Keep reading to learn how the process works, or apply to get bonded today.

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Virginia Auto Dealer License Requirements

To get a Virginia motor vehicle dealers license, you must apply through the Commonwealth’s Motor Vehicle Dealer Board�(MVDB). On the license application, dealers specify whether they will be a franchised or independent dealer. Franchised dealers have agreements with a vehicle manufacturer to sell their vehicles�whether new or used�while independent dealers sell only used cars.

Information Needed

Some of the information dealers need to provide to the MVDB includes:

• Name of business and trade name, if applicable
• $350 Motor Vehicle Transaction Recovery Fund�(MVTRF) fee
• Name of the dealer-operator, the person in charge of day-to-day operations
• Type of business ownership (LLC, corporation, etc.)
• Names and titles of all business owners, partners, etc.
• Business hours

License Prerequisites

The MVTRF Fund is used to reimburse consumers who have suffered damages because of a dealer’s illegal practices.�There are some other prerequisites for a Virginia auto dealer license:

• Must have exclusive dealership space of at least 250 square feet
• Must maintain dealer records as required by��46.2-1529 of the Code of Virginia
• Must display business hours (at least 20 hours per week, 10 of which must be between 9 a.m. and 5 p.m. Monday through Friday)
• Office must have a desk, chair, filing space, working business telephone listed to the dealership, internet connection, and email address
• Space to display at least ten vehicles
• Become a licensed salesperson (licensed dealer and employees that are salespeople)
• Get a $50,000 surety bond�
• Training courses as required

All license requirements can be found in the MVDB’s New Dealer Packet. You can find all the forms needed for application or renewal on the MVDB’s website.

VA Dealer Bonds

The standard surety bond required of Virginia motor vehicle dealers is a $50,000 bond. Dealers in the Commonwealth need to renew their surety bond for the first three years of licensure, plus the $350 MVTRF Fund fee. After three years, if no claim has been made against the dealer’s bond or against the Fund in their name, the dealer no longer needs to renew the surety bond. In addition, the annual $350 Fund fee drops to $100.

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Motor vehicle dealers can opt not to participate in the Fund at the time of license renewal. In this case, they need to post a $100,000 surety bond. Dealers only have this option as long as they have not been the subject of a bond or Fund claim for at least three years.

The bond serves as dealers’ guarantee that they’ll adhere to the provisions of the Code of Virginia pertaining to their license. If they do not, and a consumer suffers losses as a result, the bond provides a means of reimbursement.�Individuals can receive no more than $25,000 per claim on a $50,000 dealer surety bond, and no more than $20,000 per claim on a $100,000 dealer bond.

Ready to get bonded as a Virginia auto dealer? Get in touch with Single Source Insurance today!

Becoming a Georgia auto dealer involves getting a license and a surety bond, as it does it most states. Keep reading to learn more about the registration and bonding process, and apply online for the bond you need today.

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Georgia Dealer License Requirements

Georgia used auto dealers register with the state Department of Revenue�(DOR) and are also referred to as independent dealers. In addition to registering, dealers need to apply for a license with the Professional Licensing Boards Division of the Secretary of State. To register, applicants must submit the following information to the DOR:

• Completed form MV-6, license plate application
• Completed form MV-6A, authorize/add/delete agents
• Copy of Georgia business or occupational license
• Proof of publicly listed Georgia phone number that is not a cell phone number
• Proof of Georgia tax ID number
• Copy of Georgia drivers’ licenses for each authorized agent or representative
• Completed Motor Vehicle Affidavit for Citizenship Verification
• Completed form MV-6B if applying for more than two additional license plates
• Photos of place of business, including signs and lots
• $62 license plate fee + $12 per additional plate requested

Used auto dealers can mail in their applications or drop them off in person or in the drop off box in Atlanta. Registrations expire every year at the end of the month�the month your business’s registration expires is determined by the letter its name starts with. For example, businesses whose names begin with A or B expire at the end of January each year. Consult the DOR’s checklist to be sure you include all required information.

License Applications

Georgia used auto dealer license applications are reviewed at least six times per year at the Board’s meetings (dates are posted on their website). Applicants need to submit the following information to the Board:

• Any required licensing fees�see fee schedule
• $35,000 surety bond�for each business location
• Original certificate of insurance
• Photos of the established place of business
• Landline phone number
• Attend an approved licensing seminar
• Fingerprint-based background check

Applicants also need a valid email to communicate with the Board. Don’t submit your application unless your place of business is ready to pass an inspection, which may be required for new applicants. Georgia used auto dealer licenses are good for two years and all licenses need to be renewed before March 31 in even-numbered years.

Dealer Surety Bond Requirements

The $35,000 surety bond required of Georgia used auto dealers is in place to discourage and protect against any unethical business practices on the dealer’s part. The bond protects consumers that suffer financial damages as a result of a dealer’s negligence or violation of the law. If a claim is made and paid out, the dealer has to reimburse the surety the full amount paid, which serves as a deterrent to violating the terms of the bond.

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The bond’s term must run concurrently with the licensing period, also expiring on March 31 in even-numbered years. The Board requires the original bond plus power of attorney to be submitted, and strongly recommend keeping a copy for your records.

More questions about the Georgia used auto dealer bond? Ready to get bonded? Get in touch with Single Source Insurance today!

As in most states, if you’re a North Carolina auto dealer, you need a license and surety bond. Keep reading to learn more about getting the process started.

North Carolina auto dealer licensing

The North Carolina Department of Transportation (NCDOT) licenses auto dealers in the state, requiring anyone buying or selling five or more cars in a twelve-month period to be licensed. Several types of licensee applicants use the same form when applying for licensure, though their application fees differ:

• Motor vehicle dealers�$90 fee
• Wholesale motor vehicle dealers�$90 fee
• Factory branches�$130 fee
• Distributors��$90 fee
• Manufacture dealers�$195 fee

Some of the information that the application requires includes:

• Business ownership type (corporation, LLC, etc.)
• Firm name, address, phone number, and DBA if applicable
• Names, ages, addresses, and titles of business owner, partners, members, etc.
• Additional locations in North Carolina owned by applicant where vehicles are sold
• Number of sales representatives employed working at least 25 hours per week
• Fees for dealer and dealer transporter plates

There are other prerequisites related to licensure North Carolina auto dealers should be sure they meet:

• For retail dealers, an established salesroom of at least 96 square feet in a permanent, enclosed building
• For wholesalers, an established office of�at least 96 square feet where records are kept�in a permanent, enclosed building
• Sign displaying business’s name in letters no less than three inches tall
• $50,000 surety bond for the first business location, plus $25,000 for each additional location
• Assumed name filed with the Register of Deeds in the appropriate NC county or counties
• If business is a corporation, articles of incorporation filed with NC Secretary of State

In addition to these and other requirements, a used North Carolina auto dealer applicant must provide proof of completion of 12 hours of continuing education in an approved course in the previous 12 months with initial licensing; at license renewal, they need proof of six hours of continuing education. Auto dealer licenses are valid for one year.

Surety bonds for NC auto dealers

The minimum $50,000 surety bond required of all North Carolina auto dealer applicants is a protection measure for consumers. It protects against damage caused by the principal (the auto dealer licensee) should they break any laws and cause financial damage to the consumer. The consumer can file a claim to seek reimbursement if they feel the dealer violated any of North Carolina’s regulations.

Ready to get started toward becoming a licensed North Carolina auto dealer? Single Source Insurance can help!�

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Every state requires auto dealers to be licensed, and most also require a surety bond. If you’re thinking of applying for a Michigan auto dealer license, keep reading to learn more about the process, and apply online for the bond you need today.

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Who Needs A Michigan Dealer License?

In Michigan, an auto dealer license is required if a person plans buys, sells, leases, negotiates the leases, brokers, or deals in five or more vehicles in a 12-month period. Michigan law defines vehicles as any that need to be titled and include trailer coaches and trailers weighing over 2,500 pounds.

The state of Michigan licenses auto dealers by class, and there are three types of licensees that need a surety bond:

• Class A�New vehicle dealer license, allowing dealers to buy and sell new vehicles under a franchise agreement or manufacturer contract
• Class B�Used vehicle dealer license under which dealers can buy and sell used vehicles
• Class D�Broker license, allowing the licensee to bring a buyer and seller together, negotiate the terms of a transaction, or display vehicles for sale; and allowing the licensee to conduct vehicle auctions

Classes C, E, F, G, H, R, and W of the Michigan auto dealer license do not need a surety bond, and you can read about them here. This post will focus on licensing for new and used auto dealers.

Dealer License Requirements

New and used auto dealers are licensed through the Michigan Secretary of State. There are several prerequisites for Michigan auto dealer licensing:

• Copy of Articles of Incorporation or Assumed Name Filing
• Fingerprints for all business owners, partners, corporate officers and/or directors
• Michigan No-fault fleet type insurance
• Registered repair facility or an agreement with one
• At least two dealer plates
• Zoning and municipal approval
• $10,000 surety bond
• $75 license fee

New auto dealers must also have a franchise agreement with a vehicle manufacturer.�Both new and used auto dealer applicants also need an established place of business that adheres to the provisions of Section 257.14 of the Michigan Vehicle Code. Some of those provisions include the following:

• Must be primarily for conducting the business of an auto dealer and cannot be a residence
• Place where business records are kept
• At least 1,300 square feet of land space that can display a minimum of ten vehicles, plus 650 square feet of customer parking
• Building of at least 150 square feet
• Permanent, visible sign displaying dealership’s name
• Clearly displayed hours of operation (no less than 30 hours per week)

Read the MVC section for a more detailed list of dealership requirements. Make sure to complete the entire application packet to expedite the licensing process. Dealers’ licenses must be renewed each year by December 31, or a new application will need to be submitted.

Dealer Surety Bond Requirements

New and used Michigan auto dealers and brokers need a $10,000 surety bond. The surety bond is the dealer’s promise not to engage in unethical business practices, like misrepresenting the condition of a vehicle they are selling. It’s also a promise that the dealer is adhering and will continue to adhere to the rules and regulations they are governed by. That means the bond is a guarantee that the dealer will pay all appropriate taxes, continue to renew their license, and never engage in fraud.

Interested in becoming a licensed Michigan auto dealer? Get started by getting your surety bond!

Florida requires garage liability insurance for several business licenses in the auto industry. Do you need garage liability insurance but you’re not sure why you need it or what it is? Keep reading to find out.

What is garage liability insurance?

Garage liability insurance is required of many auto-related businesses in Florida, providing coverage for bodily injury and property damage arising from business operations. If there is an accident involving the business’s vehicles or on its premises, garage liability insurance protects the policyholder from devastating losses.

Who needs garage liability insurance in Florida?

The state requires thesetypes of dealers licensed through the Florida Department of Highway Safety and Motor Vehicles to have garage liability insurance:

• Independent dealers
• Auction dealers
• Wholesale dealers
• Salvage dealers
• Franchise dealers
• Mobile home dealers
• Recreational vehicle dealers

These dealers’ garage liability insurance must provide at least $25,000 of combined single-limit coverage including bodily injury and property protection. If a dealer has more than one business location, all locations can be covered on one policy if the policy provides the proper amount of coverage per location; for example, a dealer with four business locations would need $100,000 in bodily injury and property protection coverage. In addition, dealers must provide $10,000 in personal injury protection coverage, which does not have to be increased if the dealer has more than one business location.

What else should I know about garage liability insurance?

Florida garage liability insurance is not the same thing as garagekeepers insurance. Garagekeepers insurance provides coverage for consumers’ vehicles when they are in your (the dealer’s/policyholder’s) care, while garage liability insurance covers mishaps to the dealer’s property and inventory.�Garagekeepers insurance is not required by law in the state of Florida, but it is something every business owner should consider purchasing.

There are several situations in which garagekeepers insurance might cover what your regular garage liability policy will not, depending on the type of garagekeepers coverage. The different types of coverage offered are as follows:

• Comprehensive coverage, covering damages to the consumer’s vehicle in any event except collision with another object or overturn
• Specified causes of loss coverage, covering damages to the consumer’s vehicle caused by lightning, fire, explosion, theft, or vandalism
• Collision coverage, covering damages to the consumer’s vehicle if it collides with another object or overturns

Coverage varies, so make sure you understand the type of coverage you’re purchasing and what it covers.

Learn more about garage liability and garagekeepers insurance when you get in touch with Single Source Insurance today!

Looking to become licensed as an Arizona motor vehicle dealer? Single Source Insurance has put together this quick guide on licensing and bonding for dealer applicants. Learn more below, and apply online to get the dealer bond you need.

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Types Of Motor Vehicle Dealers in Arizona

The state of Arizona issues several different types of motor vehicle dealer licenses:

• New MVD�Individual who buys, sells, or otherwise arranges the purchase or sale of new and used motor vehicles
• Used MVD�Individual who buys, sells, or otherwise arranges the purchase or sale of four or more used motor vehicles in a calendar year
• Public consignment auction dealer�Individual who conducts live auctions with a licensed auctioneer and who provides auction services to the public on a consignment contract basis
• Broker�Individual who arranges or assists in the purchase of motor vehicles for a fee, commission, or other compensation, and who is not already licensed as a dealer
• Wholesale auto auction dealer�Individual who provides auction services solely in wholesale transactions with licensed dealers, and who does not personally buy, sell, or own the motor vehicles they auction
• Wholesale MVD�Individual who sells used motor vehicles only to licensed dealers
• Automotive recycler�Individual engaged in the business of purchasing six or more vehicles per calendar year for the purpose of dismantling, selling, or otherwise disposing of the parts

All motor vehicle dealers in the state are licensed through the Motor Vehicle Division of the Department of Transportation�and submit their applications using the same form. They all must also post a surety bond in varying amounts.

How Do I Get Licensed?

Before beginning the motor vehicle dealer application process, determine which type of license you’re applying for. Much of the licensing process is the same, but the provisions of each license, surety bond amounts, and other details are different, so it’s important to know the parameters of the license you’re seeking.

The common application requires dealer applicants to first specify the type of license they’re applying for. Some of the other information the application asks for includes the following:

• Business type (sole proprietorship, LLC, corporation, etc.)
• Business name or DBA
• Business address and lease or ownership documents of business location
• Hours and days of operation
• Other business contact information including mailing address, phone number, and principal owner’s email
• Designated contact person and their contact information
• List of all products dealer is authorized to sell
• Fingerprints�for applicable persons

Motor vehicle dealers have rules regarding their place of business�they must display a permanently affixed sign that is legible from 300 feet away in daylight. The business’s name on the sign must be worded exactly as it’s listed on the application. Wholesale dealers that work from their homes must have a sign but it does not have to be legible from 300 feet away.

The business location must have enough room to display two or more vehicles and its primary business should be the licensed dealership. Pictures of the location, including the entire lot, signage, office space, address and hours, and building itself must be included in the motor vehicle dealer application.

Motor vehicle dealer applicants must pay the same fees to the DOT�a $15 filing fee and a $22 criminal records check fee per individual should be submitted along with the license. Other fees to be paid by invoice are a $100 license fee, $10 provisional license fee, and a $50 branch office fee if applicable.

The state of Arizona provides a checklist and a how-to guide for motor vehicle dealer applicants. The list above is not exhaustive, so be sure to read both documents thoroughly to ensure you send in all required information.

Do I Need A Surety Bond?

The surety bond is required of motor vehicle dealers in Arizona to ensure they conduct their business according to law. The different types of dealers need different amounts of bond coverage.

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$100,000 surety bond

• New MVDs
• Used MVDs
• Public consignment auction dealers

$25,000 surety bond

• Brokers
• Wholesale auto auction dealers
• Wholesale MVDs

Automotive recyclers need a $20,000 surety bond. All dealers submit their bond on the state-provided form, in which they agree to adhere to Arizona Revised Statutes Title 28, Chapter 10. The bond is dealers’ legally-binding promise to customers that dealers are conducting business ethically and in accordance with the law. It also provides customers a way to seek reimbursement if a dealer’s illegal or unethical business practices cause financial damage to customers.

Ready to begin the Arizona motor vehicle dealer licensing process? Get in touch with Single Source Insurance today!

When you’re starting a business, navigating the governmental red tape can be an intimidating, tedious task. If your business application requires a surety bond, you might be asking yourself, “What is a surety bond, anyway?” Keep reading to learn more about surety bonds before you buy.

What is a surety bond?

A surety bond is a three-party agreement between:

• The principal�This is the person or entity purchasing the surety bond and agreeing to uphold the terms of the bond.
• The obligee�The obligee is the (usually governmental) entity requiring the purchase of the bond. For example, the New York DMV requires that auto dealer applicants and licensees in the state purchase a surety bond.
• The surety�The surety company provides financial backing for the surety bond, guaranteeing payment to the obligee in the event that the principal violates the terms of the bond.

To put it more simply, a surety bond is a contract in which the principal promises the obligee that they won’t violate the bond’s terms, and the surety company backs that promise financially.

What happens if the principal violates the bond’s terms?

Most surety bonds’ terms are no more than a promise to uphold industry and professional laws. The principal agrees to follow the law and maintain a surety bond as a way for customers or clients to seek reimbursement if any of those laws are violated.

If the principal breaks a law they promised to follow by purchasing and signing their surety bond agreement and causes financial damage to a customer or client, the damaged party can file a claim and seek compensation. If the claim is proven to be valid, the surety will pay the claim up to the bond’s full amount. So, if a $3,000 claim is made on a $10,000 surety bond, that claim is paid by the surety company.

However, it’s important to note that with surety bonds, the principal is assuming all risk�if the surety company has to pay that $3,000 claim, the principal must then repay the surety. You can think of a surety bond as insurance for your customers, protecting them in the event that your business does not adhere to the law.

I’m not going to use a surety bond, so why do I need it?

We’re glad that you don’t have any plans to use your surety bond! It’s a safeguard, a just-in-case precaution that protects the most important part of your business: your customers. If you never use the bond, that’s good for you and your business.

Another important reason you need a surety bond is that having one is probably the law in your industry or profession. You might lose your business license or face fines if you neglect the requirement.�It also serves as an indication to your customers that your business is trustworthy and in compliance with the law.

Now you know what a surety bond is, get in touch with Single Source Insurance today! Get bonded and get the answers to any other questions you might have.

Thinking about becoming a New York auto dealer? Find out more about the licensing and bonding process, and apply online for the bond you need today.

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Which Dealer License Do You Need?

There are several types of motor vehicle dealer choices on the license application, which is submitted to the New York Department of Motor Vehicles:

• Franchised or new motor vehicle dealer
• Used/other motor vehicle dealer
• Wholesale motor vehicle dealer

The application is also used for boat dealers, yacht brokers, transporters, and ATV dealers, but this post will focus on the requirements for the New York auto dealer portion.

In order to sell new cars, a New York auto dealer must have one or more franchise agreements with manufacturers or distributors. Copies of every franchise agreement must be included with the new auto dealer’s application.�A licensed New York used auto dealer�including used motorcycles, RVs, trailers, and heavy trucks�can also sell used vehicles wholesale. Wholesalers, however, cannot sell vehicles at retail.

The following list details some information required with a New York auto dealer application:

• Individual’s name or DBA name
• Type of business ownership�LLC, corporation, individual, partnership
• Proof of permission to use business property�lease or sub-lease, mortgage, notarized statement from property owner
• Sales tax ID number and a copy of Sales Tax Certificate Authority
• Proof of workers’ compensation insurance
• Copies of drivers licenses’ or other photo ID for anyone listed on application
• Receipts for the purchases of dealer starter kits and signs
• Filing Receipt from the Department of State or a Business�Certificate from the County Clerk
• Copy of complete, original, sealed, and signed surety bond

New York auto dealers must also pay two fees with two separate payments:

• $487.50 for application and business fees
• $260 for MV-50 (retail certificates of sale) fees

New York Auto Dealer Bond

A New York auto dealer applicant is required to submit a surety bond along with the application. The surety bond amount varies depending on which license is being applied for:

• Franchised new motor vehicle dealers�$50,000 surety bond
• Used auto dealer selling 50 or fewer cars in the previous year�$20,000 surety bond
• Used auto dealer selling more than 50 cars in the previous year�$100,000 surety bond

Get Bonded

The surety bond is a dealer’s guarantee that they will conduct business according to New York law, and in the event that their business practices cause a customer to incur financial damage, provide a means of reimbursement for the customer.

When purchasing a New York auto dealer bond, keep in mind that any claims proven and paid out by the surety must be reimbursed by the principal, the bondholder.

Starter Kits & Signs

New York auto dealers have to follow the state’s laws for obtaining a starter kit and proper signage. A starter kit includes the following items:

• Book of Registry
• Bills of sale (MV-50)
• Odometer statements
• Warranty forms

Those items can be purchased through several approved vendors listed on the DMV website. Official dealer signs meet the following criteria:

• Red background with white lettering
• At least three feet wide by two feet tall
• In two-inch block lettering, display “REGISTERED (facility number) STATE OF NEW YORK MOTOR VEHICLE DEALER”
• Permanently mounted and visible from the nearest street or highway

Ready to get licensed and purchase your New York auto dealer surety bond? Single Source Insurance can help!