Pennsylvania Motor Vehicle Dealer Bond | #1 Surety for MVD Bonds

Pennsylvania Motor Vehicle Dealer Bond

Posting a Motor Vehicle Dealer Surety Bond is required by law prior to conducting any business in the state of Pennsylvania.


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What is a Pennsylvania Motor Vehicle Dealer Bond?

Motor vehicle dealer bonds in Pennsylvania are mandatory to obtain to operate a business legally in the state. This auto dealer bond, similar to other surety bonds, acts as an agreement between three separate parties, the vehicle dealer (principal), the state (obligee), and the surety company. Generally, consumers that are harmed from illegal business activities such as fraud or not honoring any written contracts can claim against your surety bond. A motor vehicle dealer bond is posted to protect the buyer, not the business. The bond is set to make sure the operating vehicle dealer will abide by Pennsylvania’s state Statutes and applicable laws.

Bonding Solutions has proprietary programs custom set to any client or agent that can help them receive industry-low rates on your vehicle dealer bond. Contact us today. 877.841.674

Bonding Solutions | Pennsylvania Motor Vehicle Dealer Bond
Bonding Solutions | Pennsylvania Motor Vehicle Dealer Bond
Bonding Solutions | Pennsylvania Motor Vehicle Dealer Bond

How much will my Pennsylvania Motor Vehicle Dealer Bond Cost?

Pricing of your motor vehicle dealer bond is dependent on industry regulations and the applicant’s personal credit. Pennsylvania requires all motor vehicle dealers to post a bond at $20,000. Similar to other bonds, this surety bond is subject to underwriting, so you do not have to pay the full $20,000 but a percentage based on your credit. Typically applicants receive rates from 0.5% to 10%. 

Regardless of your credit history, Bonding Solutions can help you receive a lot rate on your auto dealer bond with our proprietary programs. Contact an expert today.

Why is this Pennsylvania Auto Dealer Bond Required?

In Pennsylvania, the requirement for auto vehicle dealers to post a surety bond is a regulatory measure imposed by the state to uphold the integrity and ethical standards of the automotive industry. This bond serves as a formal assurance that all business activities conducted by the motor vehicle dealer will be in strict compliance with Pennsylvania’s statutes and applicable laws. These laws encompass various aspects of vehicle dealership operations, including ethical sales practices, transparent financial dealings, and accurate vehicle documentation. The bond acts as a safeguard, ensuring that dealers adhere to these legal and ethical requirements, thereby maintaining fair business practices within the state’s automotive market.

The Pennsylvania Auto Dealer Bond is particularly crucial for consumer protection. It provides a financial safety net for the public against potential malpractices by auto dealers. In instances where a dealer engages in fraudulent activities or illegal business operations, such as misrepresentation of vehicle conditions, failing to fulfill warranty obligations, or engaging in deceptive financial transactions, consumers have a recourse for compensation. Affected individuals can file a claim against the auto dealer bond, and if the claim is substantiated, the surety company is obligated to compensate the claimant for their financial losses up to the bond’s limit. This process not only provides a mechanism for redress for those who have been wronged but also serves as a deterrent for dealers against engaging in unlawful practices.

Furthermore, the bond requirement instills a greater degree of trust and confidence among consumers in the Pennsylvania auto market. Knowing that there is a bond in place that holds dealers accountable for their actions reassures consumers that they are entering into transactions with reputable businesses. This bond requirement thereby contributes significantly to creating a more secure, transparent, and reliable marketplace for buying and selling vehicles in Pennsylvania. It ensures that auto dealers operate with a high level of professionalism and customer service, fostering a business environment where consumer rights are respected and protected.

How do I get a Motor Vehicle Dealer Bond in Pennsylvania?

Bonding Solutions makes getting an auto dealer bond simple and effective. You can begin by taking two minutes to fill out our online application or call. After we receive the required information, we will then send you our pricing along with the terms. Once you pay for your bond, Bonding Solutions will email and send you your surety bond the same day.

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Additional Resources

Pennsylvania Dealer/Vehicle Manufacturer Bond Form

Pennsylvania Board of Vehicles Act

Pennsylvania Code Chapter 19

Pennsylvania Motor Vehicle Dealer License Application Forms

Surety Bond List

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