What is a Motor Vehicle Wholesaler Surety Bond?
Motor vehicle dealers are typically required to obtain a surety bond to obtain a license and be in compliance with applicable laws and regulations. Motor Vehicle Wholesale Surety Bonds are required for dealers who sell vehicles in bulk to other dealers. Motor Vehicle Wholesale Surety Bonds ensure that the motor vehicle wholesaler adheres to the terms and limitations of their wholesale license, as well as all applicable laws and regulations.
They also serve as a safeguard against potential acts of fraud and misrepresentation. Fraudulent actions made on behalf of the motor vehicle wholesaler, such as the misrepresentation of vehicles and their condition, can potentially result in significant losses for the wholesale buyer.
Which states require Motor Vehicle Wholesaler Surety Bonds?
Pacific Surety proudly offers Motor Vehicle Wholesale Surety Bonds in the following states:
- Alabama
- Arizona
- California
- Colorado
- Indiana
- Montana
- Nebraska
- New Mexico
- New York
- North Carolina
- Oklahoma
- South Carolina
- Wisconsin
If you do not see your state listed, please contact us and our knowledgeable underwriters will assist you.
What is the bond amount for Motor Vehicle Wholesaler Surety Bonds?
Bond amounts for Motor Vehicle Wholesaler Surety Bonds vary and are set by the local rules and statutes regulating the industry. Therefore, bond amounts and requirements will fluctuate from state to state. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much does a Motor Vehicle Wholesaler Surety Bond cost?
Pricing for Motor Vehicle Wholesaler Surety Bonds will vary, and your premium will be based on the following factors:
- State the bond is required in
- Amount of the bond
- Term length of the bond
- Personal credit for anyone with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Motor Vehicle Wholesaler Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Motor Vehicle Wholesaler Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Motor Vehicle Wholesaler Surety Bond. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I purchase a Motor Vehicle Wholesaler Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
Who does a Motor Vehicle Wholesaler Surety Bond protect?
Motor Vehicle Wholesaler Surety Bonds serve as a safeguard against potential acts of fraud and misrepresentation. Fraudulent actions made on behalf of the motor vehicle wholesaler, such as the misrepresentation of vehicles and their condition, can potentially result in significant losses for the wholesale buyer and a claim can be filed. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. You are then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.