Ohio Auto Dealer Bond Requirements
To sell used cars in Ohio, you will need to obtain a used motor vehicle dealer license from the Ohio Bureau of Motor Vehicles (BMV) Dealer Licensing. One of the main licensing requirements is to post a $25,000 auto dealer bond.
You will need to post this bond by mail to the Ohio Attorney General at the following address:
Ohio Attorney General
Consumer Protection Section
Attn: TDRF Unit Surety Bond
30 E. Broad Street, 14th Floor
Columbus, OH 43215
Why Do I Require This Bond?
This bond is required under section 4501:1-3-11 of the Ohio Administrative Code (OAC). It guarantees your compliance with the provisions of Chapter 4501:1-3 OAC.
If you violate your obligations under that chapter, the auto dealer bond serves as financial security for anyone who has purchased a vehicle from you and has experiences losses or damages in the process.
The bond is posted to the Attorney General’s Office and any compensation extended under a bond claim is issued by the Title Defect Rescission (TDR) fund.
If a claim is filed against your bond, the surety will investigate it to determine its veracity and the possible amount of compensation it needs to extend under the bond agreement. Such compensation may be as high as the full penal sum of the bond.
Do you want to know more about surety bonds and why you need to get one? Have a look at our detailed ‘What is a surety bond’ guide for a complete explanation!
See the following sections to learn more about the cost of the Ohio auto dealer bond, and how to get yours!
For further information about this bond and the bonding requirements in Ohio, call us at 866.450.3412 anytime!
What Is The Cost of The Ohio Auto Dealer Bond?
Applicants for an Ohio used motor vehicle license need to post a $25,000 bond.
To get bonded, you must pay a bond premium to the surety that issues your bond. The premium is typically a percentage of the full amount of your bond. When setting the percentage rate at which you can get bonded, sureties will take into account several different factors.
Factors That Determine Your Bond Premium
Your personal credit score is the primary factor that influences your surety bond premium. The higher your credit score is, the lower your bond premium will be. If instead, you have a low credit score, this will increase your bond premium.
Applicants with very high credit scores can get bonded for as little as 1%-2% of the total bond amount. Those with a lower score are typically bonded above that rate. To get an estimate of the possible cost of your bond, see the table below!
Apart from your credit score, there are several other factors that can influence your bond premium. These include your:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
To learn more about surety bond cost and how these different factors influence it, see our surety bond cost guide!
|Ohio Auto Dealer Bond Cost Based on Credit Score
|Used motor vehicle dealer
How to Get Your Ohio Auto Dealer Bond
Ready to get your auto dealer bond? Click on the banner below to complete our brief bond application form.
You will then receive a free quote on your bond, along with detailed information regarding the bonding process, and the steps that follow.
If you have any additional questions about the bonding requirements for used car dealers in Ohio, call us at 866.450.3412!