What is an Oregon Motor Vehicle Dealer Bond?
Purchasing the latest car model or buying a used motor vehicle from a dealer (whether done from a vehicle shop, from the internet, or a public sale) provides you added consumer rights and information compared to buying it privately. This is true especially if the dealer you’re buying from is a member of an Oregon Auto Dealers Association as you can be assured that they are registered and will comply with state laws and policies. However, to be on the safe side, before buying anything, you need to be certain that the dealer you will transact business with is fully bonded by the Oregon Motor Vehicle Bond.
The Oregon Motor Vehicle Dealer Bond is an explicit guarantee that will shield car buyers and the general public from damages as a result of mediocre work, slipshod efforts, unwarranted slip-ups, and lapses of judgment committed by a motor vehicle dealer. The bond likewise represents a verifiable assurance that in the event a dealer takes part in an unfair activity or shady business practices such as selling vehicles for an incorrect price or holding back critical information about the vehicle, a remedy can be resorted to thru the bond to help jeopardized customers.
Why do you need an Oregon Motor Vehicle Dealer Bond?
You need the Oregon Motor Vehicle Dealer Bond because you overwhelmingly want to show your clients that you have the capacity and the competence to provide services in an upright and proficient manner. Having the bond is an essential strategy to advance your status as a business owner and can consecutively boost your image within the industry. With the bond up in your sleeves, customers feel secure as they avail of your services.
More details about the Oregon Motor Vehicle Dealer Bond
Prior to obtaining the Oregon Motor Vehicle Dealer Bond, you must have a 1) filled up Original Application for Three Year Vehicle Dealer Certificate as a Dealer or Rebuilder of Vehicles, 2) a liability insurance certification, and 3) education certificate from an approved provider or DMV’s Education Requirements Certificate of Exemption Form and your fee payments.
What is the cost of an Oregon Motor Vehicle Dealer Bond?
The Oregon Motor Vehicle Dealer Bond must be $40,000 for the customary dealership. It must be signed by the owner of the application and the bonding agent. Whatever is the owner’s name(s), legal and business name, and business location is written on the bond, these must exactly match with what is placed on the dealer application, and that the seal of the bond must be original.
Bond premiums are computed based on the registrant’s financial history and credit score. Those applicants with sound financial credentials typically pay rates calculated between 1% – 4% of the bond amount. Those who have histories of felony convictions may be asked to pay higher premium rates.
How do I get an Oregon Motor Vehicle Dealer Bond?
Getting an Oregon Motor Vehicle Dealer Bond is effortless. Choose a reliable surety company and call ASAP! An experienced surety professional will enthusiastically provide you with answers to whatever concerns you have in the operation of your business.