2018 Ushers in Higher Surety Bond Amounts for Motor Vehicle Dealers in Oregon
2018 will bring changes in the auto dealer market regulations in several states across the country. Some of the new amendments to become effective next year involve the surety bond amounts. Oregon is one of the states that passed a bill increasing the bond amount auto dealers will be required to post.
According to Oregon Senate Bill 974, motor vehicle dealers will now have to post a bond in the amount of $50,000, an increase from the previous $40,000 bond. Dealers who only sell motorcycles, mopeds, all-terrain vehicles or snowmobiles will have to obtain a $10,000 surety bond, a significant increase compared to the previous $2,000 bond. The new amendments are effective starting January 1, 2018.
How will the Oregon auto dealer licensing process change?
The increase in the amount of the Oregon auto dealer bond is just one of the revisions introduced by the Oregon Senate Bill 974. The certification process is also about to change as of January 1, 2018.
Until now, new applicants in the state of Oregon were able to choose between a standard and a special auto dealer license. The standard license allowed applicants to operate as dealers or re-builders of motor vehicles, while the special one covered business owners looking to sell motorcycles, mopeds, snowmobiles or ATVs.
Starting in 2018, all new applicants are obliged to apply for the general motor vehicle dealer license. According to the new bill, however, already existing dealers can keep their obtained certification for selling motorcycles, mopeds, snowmobiles or ATVs.
The new amendment will affect the claiming process as well. The bill reduces the maximum amount for payment of any claims against general motor vehicle dealers by non-retail customers from $20,000 to $10,000. When it comes to dealers holding a certificate specifically for motorcycles, mopeds, ATVs or snowmobiles, only retail customers of the dealers in question can make a claim against the bond.
How to save on your Oregon auto dealer bond despite the amount increase?
Even though the amount increase of the Oregon auto dealer bond is quite significant, you shouldn’t worry – you won’t be spending much more on your premium.
The final surety bond cost you have to pay regularly is a percentage of the whole amount. However, it also depends on your specific financial background. Factors such as personal credit score, assets and liquidity are taken into account to calculate your specific bonding rate.
So, you can still keep your bond costs low, even though the state has increased the total amount of the Oregon auto dealer bond. Just work on your personal credit score and make sure you demonstrate financial strength. By proving that you’re not a high risk applicant, you ensure you receive the lowest bonding rates.
If you have further questions about the Oregon auto dealer bond and how the bonding process is about to change in 2018, feel free to reach out. Our team is ready to answer all your questions at: 866.450.3412.