Idaho Auto Dealer Bond Overview
Becoming an auto dealer in Idaho involves many steps, and among the most important one of them is the Idaho auto dealer bond.
The auto dealer bond is a surety bond requirement between the dealer (principal), the Transportation Department (obligee), and a bonding company which underwrites the bond and backs the agreement. The goal is to protect car buyers against fraudulent or unethical business practices. A dealer may face a claim if they breach the agreement, which is why it’s essential to be up-to-date with all relevant laws and regulations.
Here’s the most important information about the Idaho auto dealer bond:
Bond name: Idaho Motor Vehicle Dealer Bond
Bond amounts: $20,000 (retail dealers)
$40,000 (wholesale-only dealers)
$10,000 (dealers of motorcycles, ATVs, UTVs, or snowmobiles)
Obligee: Idaho Transportation Department
Expiration date: When your license expires
You can apply online now, or continue reading for more relevant information about Idaho auto dealer bonds.
Idaho Auto Dealer Bond Cost
We offer a surety bond calculator on the right, which will give you a ballpark estimate of the price you’ll be expected to pay to get bonded. Keep reading to learn more about what determines the price of your bond amount.
Depending on which type of license you are applying for, you’ll need either a $10,000, $20,000, or $40,000 auto dealer bond. These amounts are fixed and refer to the maximum coverage which can be extended to claimants.
Once you know the total bond amount, you can calculate your bond premium, which is a few percentage points of the total bond amount. Unlike the total bond amount, the premium is not fixed, but determined by the bonding company. Yours will depend on the level of risk the bonding company accepts in backing the bond. This risk is measured through an analysis of your credit history, mainly your personal credit score.
Applicants with good credit pay low premiums, in the range of 1% to 3% of the total bond amount.
|Surety Bond Cost by Credit Score|
|Type of Dealer License||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Dealers of motorcycles, ATVs, UTVs and snowmobiles||$10,000||$100-$150||$100-$300||$250-$500||$500-$1,000|
Sometimes, submitting additional information, which is usually optional for your application, can help you reduce your premium. Some examples of such information are:
- Personal financial statements
- Business financial statements
- Strong asset profile
- Resume showing industry experience
The choice of your surety bonds agency is no less important. Bryant Surety Bonds offers the lowest possible rates, thanks to our partnership with America’s strongest A-rated and T-listed providers. Always research the bonding agency you work with.
If you want to read more detailed information on the topic of surety bond cost, you can check out our guide on the topic.
Bad Credit Dealer Bonds in Idaho
If you have bad credit, you shouldn’t worry, as you can still get your Idaho auto dealer bond. In fact, thanks to our Bad Credit Surety Bonds Program, we have been able to help 99% of our applicants get bonded.
Since bad credit applicants pose a higher risk to bonding companies, they pay higher premiums, usually between 5% and 15% of the total amount required. Idaho auto dealer bonds need to be renewed yearly. You can take steps to improve your credit and financial situation, so you can pay lower premiums next time around.
Idaho Dealer License Application and Requirements
To get an Idaho dealer license, you need to attach your original bond form as part of your application. Among other things, you also need to fulfill the following:
- Get a zoning approval
- Pass an inspection
- Buy liability insurance
- Complete training (used-car and wholesale dealers only)
- Obtain a seller permit number
- Submit a copy of your Sales Tax Number Certificate
- Submit an application for each salesman you will hire
- Get an Employer Identification Number (EIN)
- Pay applicable fees
Make sure you check the website of the Transportation Department to make sure your application is complete with all the necessary information.
Get your Idaho Auto Dealer Bond Today
Congratulations! You now have a comprehensive understanding of the dealer bond requirement and you are ready to begin your online application. You can go through the whole application process in a few minutes, and we will be in touch with you shortly to help you finalize it.
After you pay for the bond quote, we will do our best to issue your auto dealer bond in no more than 2 business days. Feel free to request copies via fax or email.
Got more questions or need assistance? Call us at (866)-450-3412 and we will be happy to help!