Blog Posts Categorized: General - Page 19

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.

Get Bonded

$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!