California Motor Vehicle Lessor-Retailer Bond
Find out why this surety bond is required by the California DMV and how you can easily get one!
What is a California Motor Vehicle Lessor-Retailer Bond?
The purpose of this surety bond is to protect any person who will suffer financial loss from the wrongful acts committed by the motor vehicle lessor-retailer.
The California Department of Motor Vehicles requires every motor vehicle lessor-retailer to deposit this bond before a license is issued and before he or she can engage in the business of leasing, offering to lease, arranging the lease, sell, or offer to sell a motor vehicle.
As part of the bond’s condition, the license applicant is obligated to comply with the applicable provisions of the California Vehicle Code as well as the rules and regulations of the California Department of Motor Vehicles.
This requirement is in pursuance of Section 11612 of the California Vehicle Code.
How much does a California Motor Vehicle Lessor-Retailer Bond cost?
The bond premium will start at 0.80% to 1% of the bond amount for those who have good credit scores. The bond amount is $50,000.
Give us a call to know more about our bond program for those who have low to very low credit scores.
How can I get a California Motor Vehicle Lessor-Retailer Bond?
The first step is to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
We will immediately process your application once we have received it. You can easily contact us if you have any questions, too.
One of our expert surety bond agents will take your call and guide you through the whole process. He will also let you know the documents and other information that you need to provide in order to move forward with your application. Some of these are as follows:
- Documents that shows your financial strength
- Proof of your job/business performance history
- Your credit score
An underwriter will evaluate all those. Once that’s done, you’ll be asked to sign an indemnity agreement. After that we will execute the bond and send it to you!
How does a California Motor Vehicle Lessor-Retailer Bond work?
This bond is a tool that an Obligee can file a claim on if the Principal fails to perform the work. The Obligee is any person to whom the obligation is owed. This can be any client of the motor vehicle lessor-retailer. The party who must fulfill the obligation is the Principal. The principal is the motor vehicle lessor-retailer. The third party is the Surety. The Surety will financially back the Principal. In doing so, the immediate financial responsibility will be shouldered by the surety. When a bond claim is made by the Obligee, it’s the duty of the surety to settle the claim once its validity has been determined.
Get fast approval! Apply for this bond HERE!