Alaska Auto Dealer Bond Overview
Dealers in almost every state are required to post an auto dealer bond which ensures their compliance with certain regulations and laws.
The dealer bond is a type of surety bond requirement, which protects car buyers by allowing them to file claims if they have been defrauded. A proven claim will have to be repaid by the dealer, with the sum not exceeding the total bond amount required.
Bond Name: Alaska Motor Vehicle Dealer Bond/Buyer’s Agent Bond
Bond Amount: $50,000 or $25,00 if you only sell motorcycles
Obligee: State of Alaska
Division of Motor Vehicles
1300 W Benson Boulevard STE 300
Anchorage, AK 99503-3691
Expiration Date: Biannual renewal
This is a quick overview of the dealer bond requirement in Alaska. You can click on the Start Your Application button to begin our online application process. If you want to learn more about Alaska dealer bonds, read on.
Alaska Auto Dealer Bond Cost
Depending on whether you are a car dealer or a motorcycle dealer, you will have to obtain either a $50,000 or a $25,000 bond, respectively.
However, these sums are the maximum a claimant can get if they file a successful claim, not what dealers are required to pay to get bonded. Dealers need to pay premiums once every two years. The price of your premium depends mostly on your personal credit score. Applicants with FICO of 650 or above will normally pay no more than a 3% premium.
|Surety Bond Cost by Credit Score|
|Surety Bond Name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Auto Dealer Bond||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$5,000|
|Motorcycle Dealer Bond||$25,000||$188-$375||$250-$750||$625-$1,250||$1,250-$2,500|
Check out our How Much Does a Surety Bond Cost? page for some more information on factors determining your bond costs.
Bad Credit Dealer Bonds in Alaska
It’s still possible to obtain your auto dealer bond even if you have bad credit– or no credit. Bryant Surety Bonds offers a Bad Credit Surety Bonds Program, designed to help applicants with poor credit get bonded.
Surety underwriters consider applicants with bad or no credit history as high-risk, which is why they offer surety bonds at higher premiums: between 3% and 10%. For a $50,000 bond this is still only $5,000 per two years at most. And if you take steps to improve your credit score or can demonstrate strong financials, your bond quotes will decrease year after year.
Alaska Auto Dealer Bond Renewal
Unlike auto dealer bonds in most states, Alaska dealer bonds need only be renewed one every two years in order for them to remain in force. You need to keep your bond renewed for as long as you wish to operate as a dealer.
Renewal is easy and premiums won’t differ much from the last time you had to renew your bond, unless there is a change in your credit history or financial statements. Since renewal is not due every year, it is easier to forget it. But don’t worry, Bryant Surety Bonds sends out renewal reminders to all of its customers, to make sure you’ll never miss an important deadline.
Getting an Alaska Dealer License
Besides your auto dealer bond, there are several important requirements you will need to satisfy before you can file your application. Here are some of them:
- Submit an Application for Registration and choose whether you will be a motor vehicle or a buyer’s agent.
- Submit the original bond form
- Pay a $50 registration fee
Processing time takes between 4 and 6 weeks, so it’s wise to plan in advance. Be sure to check the full list of requirements on the website of the Alaska DMV. To stay away from claims, it’s imperative that you also be up-to-date with Title 8, Chapter 66 of the Alaska Statutes.
Apply for Your Auto Dealer Bond Today!
You now have all the information you need to proceed with your online application. It involves only a few simple steps. Upon completion, we will contact you with a free bond quote. After you sign an indemnity agreement with the bonding company and pay your quote, we will do our best to get your bond form ready within 2 business days.
The original will be sent to you by mail and you need to use that in your application, but you can request a copy via fax or email.
Should you have any more questions, feel free to call us at (866)-450-3412 and let us know how we can be of help!