Arizona Auto Dealer Surety Bond
How Much Does An Arizona Auto Dealer Bond Cost?
This is the question we hear the most as soon as we answer the phone. I wish there was a simple answer for this. However, the fact is that rates can vary greatly depending on several factors. First, the credit rating of the owners will have the greatest impact on the premium or price paid for the surety bond. Simply put, the better the credit rating, the cheaper the cost of the bond. However, this is not the only factor to take in when purchasing an Arizona auto dealer bond. Have you had a claim in the past? If so, and an insurance has paid out a claim, chances of you being able to obtain will be pretty slim.
Arizona auto dealer surety bonds will range from .7% to 20% of the penalty amount which is determined by the type of dealer license.
Amount Type of Dealer
$100,000 New Motor Vehicle Dealer, Used Motor Vehicle Dealer, Public Consignment Auction Dealer
$25,000 Broker, Wholesale Auto Auction Dealer, Wholesale Motor Vehicle Dealer
$20,000 Automotive Recycler
We usually give multiple year discounts on your dealer bond so be sure and look for the 2 year discounted quote offer on your invoice and renewals. Financing is also available for those dealers with bad credit.
Do I Need An Arizona Auto Dealer Bond?
The State of Arizona requires all dealers and brokers to get a dealer surety bond. This includes retail sales, wholesale, or the leasing of motor vehicles. All dealers must furnish a surety bond prior to obtaining a dealer license with the ADOT. Apply Now
What Does My Personal Credit Have To Do With The Auto Dealer Surety Bond Premium?
Premiums of Arizona auto dealer surety bonds will be greatly based on the owners personal credit score. This is because if a surety company has to pay out a claim, they want to make sure the applicant has a good track record of paying that debt back. Unlike insurance, if you have a valid claim on your auto dealer bond, the insurance company will look to the applicant to repay the debt. Untimely payments on your report will result in a higher bond premium.
When Do The Arizona Auto Dealer Bonds Expire?
The Arizona auto dealer surety bond will expire one year after the effective date. If your current effective date is October 1, your bond will expire on September 30th. You may also choose to purchase a 2 year bond at a discounted rate. You can usually get a 25% discount on the second year premium. We highly suggest doing this as it will save you money and also the hassle of paperwork ever year. Apply Now
I Just Purchased My Auto Dealer Surety Bond…Now What?
Once you have received the surety bond from Absolute Surety, you will need to file it with the Arizona DOT in order to get your Arizona dealer license. You will need to provide both, the original Arizona dealer surety bond along with the Power of Attorney to the Arizona Department of Transportation.