The reason you need a motor vehicle dealer bond is because it is required by law to get a dealer license.?While it is required by law, it helps to protect the public from any sticky situations such as fraud or bouncing a check.?Having a bond can also help protect other businesses that you do business with as a dealer.
The price of the vehicle registration bond varies depending on a number of factors.?In order to get a retail license, a $50,000 bond is required.?If you are going to be a wholesaler, the price of the bond required drops to a measly $10,000.?You can identify the amount of bond you need according to the number of cars you will transact.
If you are transacting less than 25 cars per year, you are going to be a wholesaler needing only a $10,000 bond.?But if you are a wholesaler and transact 25 or more cars per year, a $50,000 bond is required.
So what does all this mean to you??Surprisingly, the going rate is rather minute according to the bond amount you have to get.?For a $10,000 bond, you can expect to pay somewhere around $300 per year.?If you need a $50,000 bond, the payment will be between $800 and $1,500 per year.?These numbers fluctuate and differ from person to person according to your credit.
When getting a vehicle registration surety bond, the bond will be cheaper the better your credit is.?If you have a really good credit, the price of a $50,000 bond will be closer to the $800 per year.?However, you can expect to pony up closer to the $1,500 with a poor credit score.?If your credit is as bad as it can get, it is recommended that you get a co-signer or a business partner with a good credit to better your situation.
When you set out to find a company to purchase a dmv surety bond, be wary or where you look.?The yellow pages are filled with companies, but many times these companies are rather expensive.?Searching online is one of the better sources because of the variety and options available.
While it can be a pain having to get a motor vehicle dealer bond, fortunately they are cheaper than most people think.?As long as you research and find a reasonable company, the price of a dmv bond should be far from overwhelming.
