What is an Iowa Motor Vehicle Dealer Bond?
Learn how to obtain this Iowa Motor Vehicle Dealer License requirement today!
All applications for a Motor Vehicle Dealer License in Iowa are required to be accompanied by a surety bond. The requirement is enforced by the Iowa Department of Transportation, in accordance with Section 322.4 of the Iowa Code.
The surety bond will act as an assurance that the motor vehicle dealer will faithfully perform his or her obligations.
What is the bond amount?
The bond amount is $50,000.
Those who have excellent credit scores may be eligible to pay a low bond premium or just 1% of the bond amount!
Get your FREE quote today to determine what you have to pay!
What are the Motor Vehicle Dealer bond conditions?
- The surety bond will be a legally binding agreement between these key parties:
Principal – The Licensed Motor Vehicle Dealer
Obligee – The State of Iowa
Surety – the surety bond company that will issue the bond
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Iowa such as Surety Bond Authority
- The surety bond should be made payable to the State of Iowa
- The licensed motor vehicle dealer is obligated to comply with the provisions of Section 322 of the Iowa Code, the rules and regulations of the Iowa Department of Transportation, and all the other applicable rules
- The surety bond should indemnify the motor vehicle dealer’s client who has been injured due to the motor vehicle dealer’s failure to comply with the provisions of Section 321 and 322 of the Iowa Code, which includes the failure to provide a valid certificate of title for the vehicle bought by the client
- The surety bond should indemnify any damages caused by the motor vehicle dealer’s failure to comply with the odometer requirements in Section 321.71 of the Iowa Code
How can I obtain this type of bond?
To secure this type of bond, the Motor Vehicle Dealer license applicant must seek the assistance of a surety bond company.
You will first be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Ready to get started on this bond? Apply HERE today!