What is Utah Motor Vehicle Dealer Bond?
Learn about each and determine which one you need!
This type of surety bond is also known as Utah Motor Vehicle Dealer, Special Equipment Dealer, Crusher, and Body Shop Bond. Any person who is applying for a Motor Vehicle Dealer, Special Equipment Dealer, Crusher, and Body Shop license in Utah is required to post a surety bond.
The requirement is stated in Title 41 Chapter 3 Part 2 Section 205 of the Utah Code Annotated or the Motor Vehicle Business Regulation Act and is enforced by the Motor Vehicle Enforcement Division of the Utah State Tax Commission.
A Motor Vehicle Dealer is a person who:
- Sells new or used motor vehicles or off-highway vehicles
- Displays or offers to sell or exchange 3 or more new or used motor vehicles or off-highway vehicles within a 12-month period
A Special Equipment Dealer is a person who sells cherry pickers, material lift; truck mounted crane, a post hole digger, and a utility or service body.
A Crusher is a person who crushes motor vehicles for recycling.
A Body Shop is a business entity that repairs or restores damaged motor vehicles.
What is the bond amount?
|BOND AMOUNT|| |
TYPE OF LICENSE
|$20,000||Body Shop’s License|
|$75,000||Motor Vehicle Dealer’s License|
|$75,000||Special Equipment Dealer’s License|
If you have an excellent credit score, you may be eligible to pay a very low bond premium! The bond premium starts at $100.
Find out you need to pay for this bond today! Get your FREE quote here!
What are the bond conditions?
- The corporate surety who will issue the bond should be authorized to conduct business in Utah and should have a rating of at least B+ by the A.M. Best Company
- The Attorney General should approve the surety bond
- The surety bond should be made payable to the State of Utah
- The Motor Vehicle Dealer, Special Equipment Dealer, Crusher, and Body Shop license applicants and licensees are obligated to comply with the provisions of Title 41 Chapter 3 of the Utah Code Annotated or the Motor Vehicle Business Regulation Act, as well as the rules and regulations of Motor Vehicle Enforcement Division of the Utah State Tax Commission
- If the licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the bond
- In case of cancellation, a 60-day notice is required
How can I obtain this type of bond?
STEP 1: Apply for the bond
You need to submit a bond application to us.
STEP 2: Underwriting
We will ask you for a couple of pertinent information required for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
Are you ready to apply for this bond? Start here!