What is a North Carolina Motor Vehicle Dealer Bond?
Know what this bond is for and how to get one fast!
What is a Motor Vehicle Dealer Bond?
As a licensure requirement, every motor vehicle dealer in the State of North Carolina must post a surety bond. A motor vehicle dealer is someone who:
- Sells, exchanges, or buys 5 or more motor vehicles within any 12 consecutive months
- Negotiates the sale of 5 or more motor vehicles within any 12 consecutive months
- Sells or buys 5 or more new or used motor vehicles within any 12 consecutive months
- Displays for the purpose of sale 5 or more motor vehicles within any 12 consecutive months
- Rents or leases out motor vehicles
It will be conditioned that the licensed motor vehicle dealer must conduct business in accordance with Chapter 20 of the North Carolina General Statutes and other applicable rules and regulations.
An action can be taken against the surety bond if the licensed motor vehicle dealer commits any default or wrongful acts resulting in the injury of another.
What is the Motor Vehicle Dealer Bond amount?
$50,000 – the bond amount for one established salesroom or place of business
$25,000 – the bond amount per succeeding established salesroom or place of business
If you have an excellent credit score, you will be eligible for a very low bond premium! GET YOUR FREE SURETY BOND QUOTE HERE!
How can I get a Motor 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 in order 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 North Carolina
- The surety bond should be made payable to any person who will suffer damages from the potential wrongdoings of the Principal
- The motor vehicle dealer must comply with the provisions of Chapter 20 of the North Carolina General Statutes as well as the rules and regulations of the Department of Motor Vehicles of the State of North Carolina
- If the licensee commits a violation, the aggrieved party will be eligible to file for a claim against the bond