What is a New York Automobile Broker Business Bond?
A quick guide to one of the most important requirements for automobile brokers in New York!
Do you have an automobile broker business that sells more than three automobile vehicles per the calendar year, or is not registered as a dealer in New York? If so, you need this surety bond!
A surety bond is required of automobile broker businesses by the Department of State, Division of Licensing Services of the State of New York.
The purpose of the surety bond is to guarantee the payment of valid bank drafts which include checks that are drawn for the purchase of motor vehicles, as well as the safekeeping of all customer deposits acquired from the sale of a motor vehicle.
If the automobile broker business fails to fulfill the said obligations, the Obligee or any person that has suffered any damages due to the violation will be able to retrieve compensation through the surety bond.
The prerequisite is in pursuance of Article 35-B of the New York General Business Law.
What is the Automobile Broker Business Bond amount?
The bond amount is $75,000.
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 an Automobile Broker Business Bond?
To secure this type of bond, the automobile broker business must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
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.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the pre-qualification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond company that is approved by the Superintendent of Financial Services of the State of New York to conduct business within the state
- The surety bond should be made payable to the People of the State of New York
- The automobile broker business should obey the provisions of Article 35-B of the New York General Business Law, as well as the rules and regulations of the Department of State, Division of Licensing Services of the State of New York
- If the automobile broker business defaults on its obligations, the aggrieved party will be eligible to file a claim on the surety bond