Wyoming Auto Dealer Bond Overview
Whether you intend to sell new or used cars, you need a Wyoming dealer license. The license requirements include obtaining a type of surety bond called an auto dealer bond. This requirement pertains to everyone who sells 3 or more vehicles in any 12-month period.
Auto dealer bonds are required in order to protect car buyers and the state itself. Like other surety bonds, they represent an agreement between the car dealer (principal), the state (obligee) and a bonding company (surety). In case of a proven act of fraud or misuse on part of the dealer, the auto dealer bond can be used as a foundation for a claim. Initially, the surety covers any claim costs. Valid claims needs to be repaid in full by the auto dealership, and dealers are always advised to avoid them as best as they can.
Here’s a quick overview of the Wyoming auto dealer bond requirement:
Surety Bond Name: Wyoming Vehicle Dealer Bond
Surety Bond Amount: $25,000
Obligee: Office of the Indiana Secretary of State
Auto Dealer Services Division
302 W. Washington St.
Indianapolis, IN 46204
Required Expiration Date of Dealer Bond: One year since the date of issue
Read on for all the information about Wyoming auto dealer bonds, along with some tips on saving on your bond premium.
Wyoming Auto Dealer Bond Cost
When applying for your auto dealer bond, it’s important to know how the cost is calculated. The $25,000 sum is the total bond amount, which is not the amount you are required to pay. The total bond amount is the maximum penal sum up to which you can face a claim.
To get a Wyoming auto dealer bond, dealers are required to post a bond premium, normally just a few percentage points of the total bond amount. Your bond premium is determined by the bond underwriter after a thorough evaluation of your application. The factor which matters the most is your personal credit score, though other factors are also considered. These include:
- Liquid assets
- Personal and business financial statements
- Industry experience
Standard market rates for Wyoming auto dealer bonds are in the range of 1% to 3%. Check out the table below for a better idea of how your personal credit score affects bond premiums.
|Surety Bond Cost by Credit Score|
|Surety Bond Name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Wyoming Motor Vehicle Dealer Bond||$25,000||$188-$375||$250-$750||$625-$1,250||$1,250-$2,500|
The choice of your surety bond agency can sometimes be equally important. Since Bryant Surety Bonds works with a variety of A-rated and T-listed companies, we can negotiate the best quote on your behalf. We’ll send out your application to all of our partnering bonding companies, and match you with the one that offers the best quote.
The right sidebar contains a surety bond cost calculator which you can use to get a rough estimate of your Wyoming dealer bond premium. If you’re ready to get bonded, you can apply through our user-friendly online application. Our surety experts are there for you if you have any questions– just call us at (866)-450-3412.
Our surety bond cost page contains even more detailed information on how surety bond premiums work.
Bad Credit Program
If you’re applying for a Wyoming auto dealer bond with bad credit, you may have to pay a higher premium. This is because surety bond underwriters assume a higher risk underwriting a bond for an applicant with bad credit, and increase their premium to mitigate that.
Just like banks give out loans with higher interests to riskier applicants, surety bond companies offer bonds with higher premiums. Bryant Surety Bonds has an exclusive Bad Credit Program, to ensure you can still get the top-quality bond you need, and continue to be compliant with state regulations.
Bad credit premium rates are typically between 5% and 10% of the total bond amount. Thanks to our program, you can get bonded even if you have other credit issues, such as tax liens or civil judgments.
Wyoming Dealer License Application and Renewal
The Wyoming auto dealer bond is one of the most important requirements for getting a Wyoming dealer license, but it’s far from the only one. In addition to the bond you will be required to take a number of other steps, including:
- Complete a MV-422 Vehicle Dealer and Manufacturer Application
- Obtain a Wyoming Sales and Use Tax License from the Department of Revenue
- Go through a state and national criminal history record background check
- Pay an annual fee (applicable for license renewal as well)
Your Wyoming dealer license will be valid for one year from the issue date, and needs to be renewed annually. Each license renewal means an auto dealer bond renewal as well. We’ll send you renewal quotes ahead of the deadline to make sure you don’t miss it.
Renewal quotes typically don’t vary much from year to year, unless there is a change in one of the factors we outlined above, such as financial status or personal credit score.
Get your Wyoming Auto Dealer Bond Today
Our online application saves you time and unnecessary paperwork. Just click on the Apply Now button and follow the instructions– it takes just a few minutes. We’ll contact you shortly with your bond quote.
If you experience any difficulties you can reach our surety bond agents at (866)-450-3412 and they will gladly help you out.
After receiving your original bond form, we advise you to make copies and keep them for your personal records.