Connecticut Motor Vehicle Dealer Bond Overview
Are you an auto dealer in Connecticut? If so, you might be wondering about the Connecticut motor vehicle dealer bond requirement, which is included in your licensing application.
Like most types of surety bonds, auto dealer bonds are designed to protect the public, namely car buyers. If a dealer uses unethical or fraudulent business practices, the affected buyer has the right to file a claim. A successful claim obliges the dealer to compensate the claimant for their losses.
The auto dealer bond binds you into an agreement with the state, and that agreement is backed by the bonding company which underwrites the bond.
Here’s a quick overview of the dealer bond requirement:
Bond Name: Connecticut Motor Vehicle Dealer Bond
Bond Amount: $50,000 (new and used-car dealers)
$10,000 (leasing or rental companies)
$5,000 (vehicle repairers)
Obligee: Connecticut Department of Motor Vehicles
Dealers and Repairers Section
60 State Street
Wethersfield, CT 06161
Expiration Date: Valid for two years
Click on the Apply Now button to begin your quick online application. For more information on the Connecticut motor vehicle dealer bond requirement, explore the sections below.
Connecticut Motor Vehicle Dealer Bond Cost
You can easily find a rough estimate of the price you need to pay for your bond, using our bond cost calculator on the right. Keep reading to learn more about the factors that determine the price.
First, there is the total bond amount, which the DMV requires, and which signifies the maximum sum you may have to pay to a successful claimant. This amount can be $5,000, $10,000, or $50,000, depending on the type of license you are applying for.
To get the auto dealer bond, car dealers pay bi-annual premiums to the bonding company that issues them. Bonding companies determine premiums on the basis of the applicant’s credit score, which they use as a measure of the risk they undertake. Dealers with good credit usually pay premiums of no more than 3% of the total bond amount.
|Surety Bond Cost by Credit Score|
|Type of Surety Bond||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Connecticut New or Used Motor Vehicle Dealer Bond||$50,000||$500-$1000||$750-$1,500||$1,000-$2,000||$1,500-$3,500|
|Connecticut Leasing or Rental Company Bond||$10,000||$100-$200||$150-$300||$200-$400||$300-$700|
|Connecticut Motor Vehicle Repairer Bond||$5,000||$100||$100-$150||$100-$200||$150-$350|
You may choose to include additional, optional information in your application, which can make you a lower-risk applicant and therefore get you a lower premium. Such information may be strong financial statements (whether business or personal), the availability of liquid assets, or even a CV which demonstrates your industry experience.
Choose Bryant Surety Bonds for your Connecticut motor vehicle dealer bond, and you are guaranteed to get the lowest possible rates. We work with over 20 A-rated and T-listed bonding companies, which lets us match your application with the best possible price.
Bad Credit Dealer Bonds in Connecticut
While it’s true that surety bonds companies regard bad credit applicants as high-risk, you can still get your Connecticut motor vehicle dealer bond with Bryant Surety Bonds. Thanks to our Bad Credit Program, we help 99% of applicants obtain the bond they need.
Premiums are slightly higher if you have bad credit, so expect anything between 4% and 7%, depending on how low your credit score is and whether you have other issues such as tax liens or civil judgments. In our experience, only applicants with open bankruptcies and late child support payment cannot get bonded.
Connecticut Dealer License - Application and Renewal
Obtaining your motor vehicle dealer bond is just one step on the road to obtaining a Connecticut dealer license. Depending on the type of dealer license you need, you will have to satisfy a number of other requirements. This include getting a zoning approval, a Sales Tax ID Number, a contract or a franchise agreement, and buying insurance.
Finally, you will also have to pay the applicable application fee. Once you get the Connecticut dealer license, you have to renew it once every 2 years, which you can do online up to 45 days after the expiration date of your license. Each license renewal must be accompanied by the renewal of your motor vehicle dealer bond as well.
Get Your Connecticut Motor Vehicle Dealer Bond Now
Now that you have the facts, you can start your online application. The whole process is easy to follow and one of our agents will contact you to guide you through the remaining steps.
You’ll receive a free, no-obligations bond quote. Once we receive payment, it usually takes no more than 1-2 business days to get your bond form signed by the surety. You will need to attach the original bond as part of your license application. Upon request, we’re happy to furnish copies for your personal records.
Need any assistance? Simply call us at 866.450.3412 and let us know how we can help!