Montana Auto Dealer Bond Overview
Montana auto dealers – including wholesalers, broker dealers and franchise dealers – must obtain a Montana auto dealer bond when applying for a business license at the Montana Motor Vehicle Division (MVD).
The Montana auto dealer bond offers protection to the state and to customers of the auto dealer in the form of financial compensation. This applies if the auto dealer is found to have engaged in fraudulent and dishonest business practices, or otherwise violated state regulations for car dealers.
The bond functions like an agreement between the bond principal (the Montana auto dealer), the bond obligee (the state and public) and the surety bond company that provides financial backing for the car dealer bond.
Keep reading for answers to the most common questions about Montana motor vehicle dealer bonds: how much they cost, how you can get bonded and more.
Montana Auto Dealer Bond Cost
Franchise dealers, wholesale dealers, auto auction dealers, and broker dealers in Montana must obtain a $50,000 Montana auto dealer bond when applying for their business license.
The cost of obtaining this bond is a percentage of the total amount of the bond, and is determined by sureties, based on these factors:
- Personal credit score of the applicant
- Personal financial statements
- Business financial statements
- Industry experience and record of the applicant
The following table provides estimates for the cost of the bond, based on credit score:
|Auto Dealer Bond Cost Based on Credit Score|
|Surety Bond Name||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|New & Used Motor Vehicle Dealer, Franchise, Wholesale, Auto Auction and Broker Dealer Bond||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$3,500|
Among the above factors determining bond cost, personal credit score is by far the most important, since it’s seen as a very useful predictor of the financial stability of an applicant. Applicants who have a high credit score are considered more reliable, and receive a lower rate on their motor vehicle dealer bond. These applicants typically receive rates that are between 1%-3% of the total amount of their bond. Those, as in the above table, who have a slightly lower rate are offered a cost that is between 3%-7.5%.
Another cost-determining factor is the applicant’s choice of surety bond agency. Different agencies have access to different markets, so picking the right agency has an effect on the rate you will be offered.
By working with Bryant Surety Bonds, you know that you’ll be offered exclusive rates on your Montana auto dealer bond, backed only by A-rated and T-listed sureties.
Not only do these sureties offer some of the most competitive rates in the country, but they are also among the most reliable and successful surety companies, which means you’ll be backed by the best.
If you’d like to get an estimate of the cost of your bond, try our surety bond calculator on the right. If you’d like to get a precise and entirely free quote, simply apply online and submit your surety bond application form. We will contact you with your personalized Montana auto dealer bond quote, with no obligation.
Contact us anytime to have your questions answered or receive support from our surety professionals. Call us at (866)-450-3412 for more information or help. If you’d like to know more about how sureties determine bond rates, our 'Surety Bond Bost' page can tell you everything you need to know.
Bad Credit Dealer Bonds
Applicants who have a bad credit score sometimes doubt whether they can get bonded at all. Many sureties tend to reject bad-credit applicants.
But there’s still hope for applicants with bad credit. Through our Bad Credit Surety Bond Program we make it possible for riskier applicants to get bonded, at rates between 7.5%-10% of the bond amount. At the same time, bonds under this program are still supplied by our expert surety partners, guaranteeing their quality and reliability.
Montana Auto Dealer License Application and Renewal
To be qualified for licensure as a dealer, Montana auto dealers must submit their auto dealer surety bond, along with an application form, and fulfill a number of additional requirements. Bonds expire on December 31st of the current licensure year and must be renewed annually, along with the license. Your application form, additional documentation and bond must be submitted to:
Title and Registration Bureau
1003 Buckskin Drive
Deer Lodge, Montana 59722
Some of the requirements you need to fulfil and the documents you need to submit when getting licensed as a Montana auto dealer are:
- An auto dealer application form specifying the type of vehicles you intend to sell
- Name, address and information of vehicle manufacturer for franchise dealers
- A business sign
- A $50,000 Montana auto dealer bond
- Information about place of business
- Evidence of compliance with all state/county/city requirements
- General liability insurance
- An original license and application fee of $30
For more information and your license application form, make sure to check the Montana MVD’s website.
Get Your Montana Auto Dealer Bond Today
Apply online here for your Montana auto dealer bond. The application process is very simple and highly secure. Fill in your application form, specify a number of details and submit it. Approvals for auto dealer bonds are fairly fast, so you can expect to get your free bond quote in no time
You can always give us a call at (866)-450-3412 if you’d like to know more about dealer bonds or need help or assistance. Our surety experts will be happy to help.