Hawaii Auto Dealer Bond Overview
The Motor Vehicle Industry Licensing Board requires used- and new-car dealers, as well as motorcycle dealers, to get an auto dealer bond before they are issued a license. The requirement is put in place to ensure that dealers stay compliant with state laws, and don’t use fraudulent business practices.
Failure to abide by the rules of the bond agreement can result in a claim against the dealership. A valid claims means the principal (i.e., holder of the bond) will have to reimburse the claimant up to the total value of the bond.
Let’s take a look at the most important information about this surety bond:
Bond Name: Hawaii Motor Vehicle Dealer Bond
Total Value: Varies based on volume of sales (see table below)
Obligee: Department of Commerce and Consumer Affairs
Professional & Vocational Licensing
PVL Licensing Branch
P.O. Box 3469
Honolulu, HI 96801
Expiration Date: June 30
Continue reading for more important information on dealer bonds in Hawaii, such as cost calculation, renewal, and other licensing requirements.
Hawaii Auto Dealer Bond Cost
To calculate your surety bond cost, you first need to know what the total value of your required bond is. Hawaii requires varying bond amounts based on the cars you sell. Amounts also vary depending on whether you are a new-car or a used-car dealer:
New Car Dealers:
- $50,000 if you sell less than 10 vehicles per month
- $200,000 if you sell more than 10 vehicles per month
Used Car Dealers:
- $25,000 if you sell less than 60 vehicles per month
- $100,00 if you sell more than 60 vehicle per month
Motorcycle/Scooter Dealers: $10,000
Hawaii auto dealer bonds are paid for in annual premiums, which are only a small percentage of the total value of the bond. Applicants with good credit can pay as little as 1% per year for their bond. The table below contains a good approximation of what your premium might be, based on your personal credit score.
| Surety Bond Cost by Credit Score and Number of Vehicles Sold | |||||
|---|---|---|---|---|---|
| New-car auto dealer bond | |||||
| Number of Vehicles Sold | Surety Bond Amount | Above 700 | Between 650-699 | Between 600-649 | Below 599 |
| Less than 10 vehicles per month | $50,000 | $500-$1,000 | $750-$1,500 | $1,000-$2,000 | $1,500-$3,500 |
| More than 10 vehicles per month | $200,000 | $2,000-$4,000 | $3,000-$6,000 | $4,000-$8,000 | $6,000-$14,000 |
| Used-car auto dealer bond | |||||
| Number of Vehicles Sold | Surety Bond Amount | Above 700 | Between 650-699 | Between 600-649 | Below 599 |
| Less than 60 vehicles per month | $25,000 | $250-$500 | $375-$750 | $500-$1,000 | $750-$1,750 |
| More than 60 vehicles per month | $100,000 | $1,000-$2,000 | $1,500-$3,000 | $2,000-$4,000 | $3,000-$7,000 |
| Motorcycle/Scooter Dealer Bond | $10,000 | $100-$200 | $150-$300 | $200-$400 | $300-$700 |
While undoubtedly the most important factor determining your bond premiums, your credit score is far from the only one. Learn more about this on our How Much Does a Surety Bond Cost? page, where you will also find some valuable cost-saving tips.
Bad Credit Dealer Bonds in Hawaii
It’s true that obtaining a dealer bond with bad credit is harder, mainly because surety bond underwriters consider such applicants as high-risk. After all, sureties are also legally responsible for claims against bonds they have signed.
But you needn’t worry that your bad credit will prevent you from obtaining your auto dealer bond. Thanks to our Bad Credit Program we successfully help 99% of applicants get bonded. Only in some instances, where an applicant has an open bankruptcy or is late on their child support payments, will a bond application be rejected.
Bad credit bond premiums rarely exceed 7%. If you follow our cost-saving tips, you can reduce your premiums next time renewal is due.
Hawaii Auto Dealer Bond Renewal
Auto dealer bonds in the state expire on June 30th each year, which means your bond renewal application needs to be filed before that.
If you got your bond through us, we’ll make sure you don’t miss your deadline by sending you a bond renewal reminder along with a new quote. After you pay your new premium, there is generally nothing else you need to do to renew renew your auto dealer bond.
Your bond quote will likely be similar to last year’s, unless there has been changes in your credit history or financial status.
Hawaii Dealer License - Application Requirements
Obtaining a Hawaii dealer license means going through a number of other steps. Some of them include:
- Submit a self-inspection report, which has to contain a description of your premises
- Attach photos of your proposed premises
- Submit a copy of your rental or lease agreement
- List all of the salespeople you will employ
- Attach financial statements
- Pay applicable fees
You can find a full list of licensing requirements on the website of Department of Commerce and Consumer Affairs.
Get Your Hawaii Auto Dealer Bond Today!
Applying with Bryant Surety Bonds is straightforward and easy thanks to our convenient online application. You can complete it in just a few minutes, after which one of our surety bond experts will be in touch with you to help you complete the rest of the requirements.
You’ll receive a free bond quote which carries no obligations. Upon payment, we will issue your bond in as few as two business days.
Don’t hesitate to call us at 866.450.3412 if you have any questions or need assistance with your application.
