- Required by the state
- Also known as the DMV Bond, Dealer Bond Bond or Motor Vehicle Dealer Bond
- Bond is to guarantee the rules and regulations of Dealer License
- Each State has its own bond form and bond amount
It is not uncommon in the industry for a bond to have several different names, and this bond is a perfect example. The motor vehicle dealer bond is also known as: a used car dealer bond, MVD bond, auto dealer bond, and DMV bond.
The Auto Dealer Surety Bond guarantees that the dealer operates as per the terms of the state in which they operate. This bond is considered a moderate risk by bonding companies; in recent years applicants have been examined more closely. Low rates for Dealer Bonds are available to those who qualify, but those with a poor credit track record will be forced into the higher rate, bad credit market.
For those with less then perfect credit, we have DMV Bonds available through our bad credit auto dealer program. This program requires a higher rate then the standard market, but allows those auto dealers who have been denied before the opportunity to be bonded.
Below is some state specific requirement you should keep in mine when you apply for your dealer bond:
Alabama: Auto Dealer Bonds in Alabama must expire on September 30th.
Florida: Dealer Bonds in the State of Florida are required to expire on April 30th by the DMV.
Georgia: Applicants for a Georgia Motor Vehicle License are required to submit a surety bond that expires on March 31st of an even year (examples: 3/31/12, 3/31/14). For this reason a two year bond term is required.
Illinois: The designated agent bond is required to expire on December 31st.
Louisiana: Dealer Bonds are required to expire on December 31st in the state of Louisiana
Missouri: An Expiration date of December 31st is required for auto dealer bonds.
Montana: Auto dealers are required to have a surety bond that becomes effective on January 1st and expires on the last day of December
New Jersey: NJ Auto Dealers must submit a surety bond that expires on March 31st to the DMV for licensing.
New Mexico: NM Auto Dealer Bonds must expires on December 31st
Oklahoma: A December 31st expiration is required for Oklahoma bonds.
Oregon: In Oregon a DMV Bond is required to expire the last day of the month, and the bond must be for a three year term.
Tennessee: Auto Dealer in Tennessee must have a bond that expires on the last day of the month and runs for a two year term.
Texas: The Texas Auto Dealer Bond is required to end on the last day of the month.
West Virginia: Applicants for a WV MVD Bond must have an expiration of June 30th for their surety bond.