Arkansas Auto Dealer Bond
How Much Does An Arkansas 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 Arkansas 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.
Arkansas auto dealer bonds will range from .7% to 20% of the penalty amount which is currently set by the state at $25,000. This amount cannot be more nor can it be less. In short, an applicant with good credit and that has been in business for a few years can expect to pay between $175 and $500 per year. Those with credit problems can probably expect to pay between $750 and $2500 depending on how bad the personal credit is. 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. Apply Now
Do I Need An Arkansas Auto Dealer Bond?
The Arkansas Motor Vehicle Commission (AMVC) requires all licensed franchise dealers to get a surety bond. The Arkansas State Police (For Used Car Dealers) requires all licensed used car dealers to get a surety bond. This includes retail sales, wholesale, auctions or the leasing of motor vehicles. Any licensed used auto dealer must submit a $25,000 Arkansas auto dealer bond. Franchise auto dealer must submit a $50,000 auto dealer bond with the AMVC
What Does My Personal Credit Have To Do With The Auto Dealer Bond Premium?
Premiums of Alabama auto dealer 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.Apply Now
When Do The Alabama Auto Dealer Bonds Expire?
The Alabama 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.
I Just Purchased My Auto Dealer Surety Bond…Now What?
You will need to file the dealer surety bond with the Arkansas State Police. For those franchise dealers, you will need to file the surety bond with the Arkansas Motor Vehicle Commission. You will need to provide both, the original AR surety bond and the power of attorney that will be stapled to it.