How Much Does a $50,000 Tennessee Auto Dealer Bond Cost?
To get bonded, you’ll have to cover only a percentage of the required bond amount. It’s called your bond premium and is the actual cost that you pay. The main factor that determines it is your credit score. You can expect lower premiums if your score is high.
|Tennessee Auto Dealer Bond Costs|
|License type||Bond Amount||Starting Price|
|Tennessee auto dealer license||$50,000||$500|
Your surety may consider other factors when setting your premium, including business finances, fixed and liquid assets, and industry know-how. Make sure to check our detailed surety bond cost guide for a full overview of the price formation.
Want a quick estimate of your auto dealer bond cost? Here’s our surety bond calculator.
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Can I Get Bonded If I Have Bad Credit?
If you have a low credit score or are struggling with other issues such as tax liens, civil cases, or bankruptcies, you might find it difficult to get your Tennessee auto dealer bond. But there are still good options.
To help dealers with problematic credit, Bryant Surety Bonds offers its Bad Credit Program. We have a personalized approach to our high-risk applicants, so we can offer you the best rates and help you improve your finances over time.
How to Get a Tennessee Dealer License?
The Tennessee dealer license requirements are numerous, and providing a surety bond is just one of them.
You’ll also need to go through the following steps:
- Register your business in the state
- Get an Employer Identification Number (EIN) from the IRS
- Obtain a Sales & Use Tax Certificate from the Tennessee Department of Revenue
- Choose the right dealer license type
- Get an established and permanent business location that meets state requirements and complies with zoning rules
- Obtain a Certificate of Liability Insurance with a minimum of $300,000 per occurrence
- Provide a compiled financial statement proving a minimum net worth of $10,000
- Attach financial background disclosure forms for the main people in the business
- Franchise agreement for franchise dealers
- Complete a salesperson application form for every salesperson
- Complete the TN dealer license application
- Pay the licensing fees: $400 per line make for franchised vehicle and motorcycle dealer licenses and used vehicle dealer licenses and $35 for salesperson licenses
When you submit your application, you’ll get an on-site inspection of your business location from the state Commission of Motor Vehicles. Your license will be issued within 14 days if you’ve met all requirements.
Make sure to renew your license 10 days before its expiration date to continue your operations without a halt. The licensing period is 2 years.