Georgia Dealer Bonds: Getting Bonded with Bad Credit Is Not a Crazy Idea

Starting and running an auto dealership business in Georgia is a challenge on its own. It gets even more difficult if you are struggling with a bad credit history. There is good news though: getting your Georgia dealer bond is possible, even with not-so-perfect credit.

Although some sureties find it problematic to write bonds for dealers with bad credit, here at Bryant Surety Bonds we think differently. With our Bad Credit Program, we help dealers get in the business and stay there, by providing them with continuous bonding.

Before we get to the least troublesome part of getting bonded, let’s review the auto dealership licensing process with its options and requirements.

Type of dealerships

In the State of Georgia, you can operate either as a new car dealer or as a used car dealer. Each case requires a different procedure to start your Georgia dealership.

Starting a new car dealership in Georgia means you need to operate as a franchise of a car manufacturing company. Once you’ve set up your business accordingly, you can also add used car sales by obtaining a specific business license and registering with the Motor Vehicle Division of the Georgia Department of Revenue.

The process for starting a used car dealership is quite different. Here you need to get a proper Georgia dealership license in order to operate legally. The process is thoroughly regulated and you need to meet a variety of requirements to get started.

The Georgia dealership license requirements

As explained just above, used car dealers in Georgia need to get licensed by the Georgia Board of Used Motor Vehicle Dealers. The process starts with completing the Application Package.

Aspiring used car dealers in Georgia need to meet a few licensing requirements and need to pay a non-refundable application fee of $170. The requirements include getting a set office location and a business telephone number, passing a licensing seminar and a criminal background check, obtaining a Sales Tax Identification Number from the Georgia Department of Revenue, and getting $125,000 insurance and a $35,000 Georgia dealer bond.

As a quick reminder, the required surety bond does not protect your business like insurance does. Instead, the bond is a guarantee that your dealership will abide by state regulations. This means it protects contractual obligations and the interests of your customers. When obtaining a dealer bond, you need to pay only a percentage of the bond amount, which is called the bond premium. In the case of Georgia, you need to renew the bond by March 31 on even-numbered years.

Bryant Surety Bonds’ Bad Credit Program