What is a Pennsylvania Manufacturer-Dealer-Agent-Messenger-Salvor Bond?
Motor vehicle manufacturers, dealers, full and card agents, messenger services, and salvors are required to post a surety bond before being able to conduct business in Pennsylvania.
The Manufacturer-Dealer-Agent-Messenger-Salvor Bond guarantees compliance with the provisions of the law and regulations governing the conduct of such business with timely and full payment of fees, sales taxes, and monetary penalties related to the manufacture, purchase, sale, advertisement, and salvage of motor vehicles.
A manufacturer is any person engaged in the business of constructing or assembling vehicles or motor parts and accessories.
Exempted from this bond are:
- Farm equipment dealers
- Mobile home dealers and manufacturers
- Modular housing manufacturers.
A dealer engages in the business of buying, selling or exchanging vehicles, and obtains documents only for purchasers of vehicles.
A messenger service refers to any person who advertises or offers to the public the service of obtaining from the Pennsylvania Department of Motor Vehicle titles, registrations, drivers’ licenses and similar documents.
A salvor means any person who acquires abandoned vehicles to take them apart, recycle, sell, rebuild or exchange the vehicles and their parts.
What is the bond amount?
Manufacturers and Dealers – $20,000 for each place of business
Full Agent – $30,000 for each place of business
Card Agent – $3,000
Messenger Service – $50,000 with additional $50,000 per branch office
Salvors – $10,000
Note: The required bond amount must be maintained at all times, with no exceptions. If the amount for which the Principal is bonded falls below the required sum of the bond, the Principal’s authorization to operate in line with the applicable regulations will be considered void.
The cost of the bond is a percentage (bond premium) of the bond amount, typically ranging from 1%-5%. The cost varies and may be subject to a surety underwriter’s evaluation of your credit score.
How can I obtain a Manufacturer-Dealer-Agent-Messenger-Salvor Bond?
SEND US A BOND APPLICATION – We begin the bonding process with an application. To get an accurate rate of your bond, get your FREE quote HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Your business’ history
- Your credit score
- Your copy of the BOND FORM, which can be obtained from the Pennsylvania Department of Transportation, Bureau of Motor Vehicles.
To avoid any delay, make sure that your requirements are complete before submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!
What are the bond conditions?
- The Surety must be authorized to write surety bonds in the Commonwealth of Pennsylvania.
- The Principal must act in accordance with the laws and provisions prescribed by the PA CS, title 75, Vehicles, and rules mandated by the Pennsylvania Department of Transportation.
- The bond will remain continuous in nature, except that, if the bond is canceled, or not renewed for any reason, the Surety must notify the Bureau of Motor Vehicles, Manager of the Regulated Client Services Section at least 60 days before the date of cancellation.