Being a business owner means holding the correct license, permits, insurance, and bonds in order to legally run your company. These requirements are set in place by local, state, and federal governments in order to protect the public and ensure that all business owners operate according to the state licensing regulations. As an owner of a motor vehicle dealership in California, you are required to obtain a motor vehicle dealer bond. This type of surety bond is required before you can open to the public. Bonding Solutions is a leading national surety agency that specializes in writing California Motor Vehicle Dealer Bonds and is here to help answer all of your questions about obtaining an MVD bond.
California motor vehicle dealer bonds, also referred to as California auto dealer bonds are required by the California Department of Motor Vehicles. Whether you sell new, used, or pre-owned vehicles, all car dealers must be licensed and bonded. California motor vehicle dealer bonds are a type of surety bond that provides a guarantee that the licensed auto dealer will adhere to state laws, statutes, and regulations related to his/her dealer licensing. It is essentially a contract between the car dealer, the state government, and the surety that assures a dealer’s performance of pertinent state licensing regulations. Each state’s regulations differ when it comes to licensing but they all require an MVD bond in order to protect consumers and the government from fraudulent behavior performed by a dealership and its’ employees. To start an application for a California motor vehicle dealer bond, contact Bonding Solutions today!
Any owner of a dealership in California is required to show proof of a California motor vehicle dealer bond prior to applying for a dealership license. The dealership owner can contact a surety agency to learn more about the bond requirements specific to California as each state’s regulations vary. Without obtaining the surety bond for the correct amount, a car dealership owner will not meet the requirements to apply for a dealership license.
The cost of an auto dealer bond ranges on the necessary coverage based on the size of the dealership. The bond itself can be quite expensive but the dealership owner will only pay a portion of this cost, also called the premium. The cost of a California Motor Vehicle Dealer Bond will vary based on the dealer’s credit and industry qualifications. Generally, the rate will range from 0.5% to 3% on both the $10,000 and $50,000 auto dealer bonds. The key to qualifying for a lower rate is having a good credit score, good standing with the surety, and substantial financials to prove the ability to repay a bond claim if necessary. Bonding Solutions has the ability to underwrite California motor vehicle dealer bonds for any amount. We have specialty programs set in place to help all of our clients obtain the right bond at the right price.
The MVD bond protects consumers and the government from auto dealers who fail to follow all regulations, laws, and licensing agreements.
It is simple! Click here to start your easy 2-minute online bond application and receive a quote same-day from the Bonding Solutions team. As long as we have the right information, financials, and personal details, we can provide quotes within the hour. If you prefer to call one of our team members directly, click here, and we would be happy to walk you through the application process.
A consumer who purchased a vehicle from the dealership or the government can make a claim against the California MVD bond. Claims can be made for any of the reasons listed above or if the consumer or government feels as though the car dealership has not followed specific laws and regulations. The claim will go through the normal investigation period before a decision is made whether the claim is in fact valid. The surety agency that wrote the bond will investigate the claim without favoring either party but instead, look at all of the facts and deciding who whether or not the claim made is valid. There can be one of two outcomes once the investigation is completed: either the surety will conclude that the claim made was false or there was not enough proof to coincide with the claim or the surety will, in fact, agree that the claim is legitimate, in which case the principal will be responsible for any and all costs accumulated from the claim and investigation. The surety will pay out the claim and the principal will be in charge of settling all debt.
Claims made against your California motor vehicle dealer bond can hurt your current and business tremendously. Claims that are not taken care of immediately can have lasting negative effects on your future bond applications. Avoiding bond claims is simple when you run your business ethically and legally and work to follow all regulations. If a dealership does everything by the books, it is rare that a claim will be made against the MVD bond and if a claim is made against the bond but the dealership is in fact running the business in all of the right ways, the bond claim will be classified as a false claim and no further action will be taken. Good business means doing things the right way. A business owner can avoid the negative impacts of a bond claim by doing things right the first time. If a legitimate claim is made, it is important for the dealership owner to not only pay out the claim quickly but also make the appropriate adjustments to the dealership to ensure no further claims will be made.
It is important to talk to your Surety Bond Agency about the renewal process for your California motor vehicle dealer bond. Each year you will be required to renew the bond, but depending on the approval process, your premium may change. If you previously had a higher premium due to poor credit or lower financials but have since made positive progress in those areas, you may qualify for a lower rate during your renewal. Bonding Solutions can get you the lowest rate on the market and ensure a fast approval time so that your California car dealership never suffers. When you work with Bonding Solutions, our team makes sure to guide you through the renewal process and gives plenty of notice before the exploration of your California motor vehicle dealer bond.
Quotes for a California auto dealer bond can be provided within hours of inquiry, often without running a full credit check. To obtain the actual surety bond, it is important to provide your surety agent with the correct financial information from the start to ensure a quick approval process. If all financials provided check out, we have the ability to underwrite California MVD bonds on the same day as the inquiry was made. The Bonding Solutions Team has the resources to provide you with fast approval at an affordable rate. We are the leading provider of California auto dealer bonds nationwide.
Qualifications for California MVD bonds are fairly simple. With good credit, good bond history, and the appropriate financials, Bonding Solutions can help you get qualified for an auto dealer bond at an affordable rate. If you suffer from poor credit, we have options to help you get approval, including adding a co-signer to your bond application.
Obtaining a California Motor Vehicle Dealer Bond means you will also have access to dealership auctions and exclusive car auctions. Car dealer auctions are a real auto dealer industry gem. They bring together different dealers and promote interesting and healthy competition. At these auctions, people get to pick their perfect option from a wide range of vehicles at a below-market price. This is great for dealerships as they can get exclusive access to one-of-a-kind vehicles at an extremely affordable rate and then resell it at their dealership for a premium price.
Car auctions are great because they provide hundreds of vehicles from various sources and puts them up for sale in one place. Dealers and individual buyers can then bid over the vehicle they’re interested in – the highest bidder gets the vehicle, of course. Car auctions are great for used car dealers or specialty car dealerships.
We are a surety agency that focuses on the unique needs of our clients and provide tailored bond programs that offer the most competitive advantage for their business. We want to continue to satisfy our customers, educate our employees, and aid in the success of our partners. Our team is comprised of some of the most innovative, experienced, and hard-working people you’ll ever meet. We thrive on being different, offering our clients a streamlined experience, paired with superior surety products. When it comes to California motor vehicle dealer bonds, you won’t find a surety agency better suited to get you the bond necessary to run your dealership.