What is an Indiana Vehicle Merchandising Bond?
Know the what, how, and why of this surety bond today!
As a regulated industry in the State of Indiana, the following persons must apply for a license and submit a sufficient surety bond before they can buy or sell motor vehicles or semitrailers:
- Automobile auctioneer
- Wholesale Dealer
- Converter Manufacturer
- Distributor Representative
- Factory Representative
- Transfer Dealer
- AutoMobility Dealer
Vehicle merchandising is an umbrella term for persons who are engaged in the business of selling or buying motor vehicles or semitrailers. Issuance of a license for the said persons includes the submission of a surety bond.
The surety bond will act as an assurance to the Indiana Secretary of State, Auto Dealer Services Division that the license applicant will conform to the state laws that pertain to vehicle merchandising.
If the licensee harms another person by defaulting on its obligations, the said person will be eligible to file a claim against the bond.
What is the Vehicle Merchandising Bond amount?
The bond amount depends on your type of business:
Automobile auctioneer = $25,000
Dealer = $25,000
Distributor = $25,000
Manufacturer = $25,000
Wholesale Dealer = $25,000
Converter Manufacturer = $25,000
Distributor Representative = $25,000
Factory Representative = $25,000
Transfer Dealer = $25,000
Auto Mobility Dealer = $25,000
Your bond premium will depend on your credit score. Those who have an excellent credit score will be able to pay as little as 1% of the bond amount!
How can I get a Vehicle Merchandising Bond?
You can easily get one by simply applying for this surety bond! Here’s a step-by-step guide on how to get this surety bond:
Submit a surety bond application to us! Once we have received your application, we will inform you about the important information or documents that you must submit to move forward to the next step of the bonding process, which is underwriting.
During the underwriting process, our expert underwriter will review your credit score to determine your bonding capacity.
It is important to provide us with clear and organized information to prevent any delays. Our expert underwriter will check everything that you have submitted, and once that is finished, we will immediately send the bond 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 Indiana
- The surety bond will be made payable to the Secretary of State – State of Indiana
- The licensee is obligated to comply with the provisions of Section 9-32-11 of the Indiana Code, as well as the rules and regulations of the Indiana Secretary of State, Auto Dealer Services Division
- If the licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
Secure your license! Get bonded! CONTACT US HERE!