Wholesale Auto Dealer Bond

A wholesale auto dealer bond is a type of insurance that all car dealers need to obtain before they can get their car dealer license and open their businesses.
Key Highlights
- These bonds are also referred to as motor vehicle dealer bonds or car dealer bonds.
- Wholesale auto dealer bonds protect customers from any fraudulent or unethical actions by the dealer.
- If an employer is required to have a wage surety bond but doesn't secure one, they may incur fines and penalties.
How do I purchase a wholesale auto dealer bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue wholesale auto dealer bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Wholesale Auto Dealer Bond FAQs
A wholesale auto dealer bond is a type of insurance that all car dealers need to obtain before they can get their car dealer license and open their businesses. Also referred to as a motor vehicle dealer bond or car dealer bond, wholesale auto dealer bonds protect customers from any fraudulent or unethical actions by the dealer. If a car dealer does not follow rules and regulations, a customer can make a claim on the bond and be reimbursed.
A wholesale auto dealer bond is required for individuals or businesses seeking to obtain a wholesale motor vehicle dealer license in many US states. This bond is a type of license and permit bond that serves as a financial guarantee to the state and the public that the dealer will operate in compliance with all applicable laws and regulations. Specifically, it is needed by wholesale auto dealers — those who buy and sell vehicles exclusively to and from other licensed dealers, rather than to the general public. The bond protects against fraudulent or unethical business practices by allowing claims to be filed if the dealer violates state laws. It is typically a prerequisite for licensing and is mandated by the state’s Department of Motor Vehicles or similar authority.
The cost of a wholesale auto dealer bond varies depending on several factors, primarily the bond amount required by the state and the financial profile of the applicant. The bond amount typically ranges from $10,000 to $150,000, while the premium usually falls between 1 and 10% of the bond amount.
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