What is an Illinois New or Used Vehicle Dealer Bond?
Know why this surety bond matters to your business and how to get one ASAP!
Under the Consumer Fraud Act, before the issuance of a license, the person intending to become a new vehicle dealer or used vehicle dealer must submit a surety bond to the Secretary of State.
The purpose of the surety bond is to ensure that the new vehicle dealer or used vehicle dealer will perform his or her obligations in accordance with the relevant statutes.
This includes lawfully selling or dealing with new or used vehicles, as well as the proper relegation of all title, registration fees, and taxes.
The licensee can also “act as an intermediary, agent, or broker for any licensed dealer or vehicle purchaser” as stated in the Illinois Vehicle Code.
What is the New or Used Vehicle Dealer Bond amount?
New Vehicle Dealer – $50,000 per location
Used Vehicle Dealer – $50,000 per location
If you have an excellent credit score, you will be eligible to pay for a low bond premium or as low as 1% of the bond amount!
How can I get a New or Used Vehicle Dealer Bond?
You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
Here’s how to do get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of Illinois.
- The People of the State of Illinois should be named as the Obligee of the surety bond.
- The licensed new vehicle dealer or used vehicle dealer is required to abide by the provisions of the Illinois Vehicle Code, as well as the rules and regulations of the Department of Transportation of the State of Illinois.
- If the licensed new vehicle dealer or used vehicle dealer commits a valid violation, the Obligee of the bond will be eligible to file a claim against the bond.
- The bond should run concurrently with the license period.
For more details, contact us now!