What is an Alaska Motor Vehicle Dealer Bond?
In vehicle dealerships, there are two categories of fraudulent activities — non-disclosures and affirmative misrepresentations. The first type takes place when a seller holds back information affecting the attractiveness and worth of a particular vehicle. Cases in point include a vendor failing to notify the customer that the motor vehicle was utilized as a rental car in the past, or that it was involved in an accident or sustained other concealed scratches, or that the car’s warranty has concluded.
The second category is used to mislead clients, but in this type of deceit, the salesperson takes a more active role, for instance, fiddling with the odometer, using “bait and switch” publicity, and claiming that a vehicle has options or features when it does not have. This is one huge reason why the Motor Vehicle Dealer Bond is essential.
The Alaska Motor Vehicle Dealer Bond is an explicit guarantee that will shield car buyers and the general public from damages as a result of mediocre work, slipshod efforts, unwarranted slip-ups, and lapses of judgment committed by a motor vehicle dealer. The bond likewise represents a verifiable assurance that in the event a dealer takes part in the unfair activity or shady business practices such as selling vehicles for an incorrect price or holding back critical information, a remedy can be resorted to thru the bond to help jeopardized customers.
Why do you need an Alaska Motor Vehicle Dealer Bond?
You need the Alaska Motor Vehicle Dealer Bond because you overwhelmingly want to show to your clients that you have the capacity and the competence to provide services in an upright and proficient manner. Having the bond is an essential strategy to advance your status as a business owner and can consecutively boost your image within the industry. With the bond up in your sleeves, customers feel secure while availing of your services.
More details about the Alaska Motor Vehicle Dealer Bond
Prior to obtaining the Alaska Motor Vehicle Dealer Bond, you must have a 1) filled up Original Application for Three Year Vehicle Dealer Certificate as a Dealer or Rebuilder of Vehicles, 2) a liability insurance certification, and the 3) education certificate from an approved provider or DMV’s Education Requirements Certificate of Exemption Form and your fee payments.
The Alaska Motor Vehicle Dealer Bond must be of $40,000 for a customary dealership. It must be signed by the owner of the application and the bonding agent. Whatever is the owner’s name(s), legal and business name and business location written on the bond, these must exactly match with what is placed on the dealer application and that the seal of the bond must be original.
What is the cost of an Alaska Motor Vehicle Dealer Bond?
Bond premiums are computed based on the registrant’s financial history and credit score. Those applicants with sound financial credentials typically pay rates calculated between 1% – 4% of the bond amount. Those who have histories of felony convictions may be asked to pay higher premium rates.
How do I get an Alaska Motor Vehicle Dealer Bond?
Getting the Alaska Motor Vehicle Dealer Bond is effortless. Choose a reliable surety company and call ASAP! An experienced surety professional will enthusiastically provide you with answers to whatever concerns you have in the operation of your business.