How Much Does an Alabama Auto Dealer Bond Cost?
All motor vehicle dealers in Alabama are required to obtain a $50,000 bond.
The cost of the bond, also called the bond premium, is equal to a percentage of that amount. The premium is determined by the surety based on several financial factors with the applicant’s personal credit score being the most important one.
|Alabama Auto Dealer Bond Costs
|Alabama motor vehicle dealers
In addition to your credit score, a surety may also review your financial statements, information about your assets, and your industry experience. Yet, the credit score is the most important factor, and the higher your score, the lower your bond premium will be.
To learn more, see our surety bond cost guide for a detailed explanation of how the different factors influence your bond premium.
Want to get an estimate of how much your auto dealer bond might cost? Try our surety bond cost calculator below.
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Never gotten bonded before? Our What is a surety bond? guide can provide you with all the essential information about why surety bonds are required and how they work.
Can I Get Bonded if I Have Bad Credit?
Yes, you can get an Alabama auto dealer bond, even if your credit score is currently low.
Through our Bad Credit Program, we can enable auto dealer bond applicants who currently have a low score, previous bankruptcies or other financial difficulties to get bonded.
How to Get an Alabama Dealer License?
To get licensed as an auto dealer in Alabama, you need to apply at the Alabama Department of Revenue Motor Vehicle Division.
As part of your application, you will need to complete the following steps:
- Register your business entity with the Alabama Secretary of State Business Services section
- Obtain sales tax registration from the Department of Revenue and an Employer Identification Number (EIN) from the IRS
- Meet local zoning requirements
- Obtain blanket liability insurance
- Get an Alabama auto dealer bond
- Pay a $125 dealer license fee and a $25 dealer license plate fee
- Complete the online Alabama auto dealer license application form
- Pass a designated agent registration