Florida Auto Dealer Surety Bonds
How Much Do FL Auto Dealer Bonds 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 Florida auto dealer bonds. 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.
Florida 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 A Florida Auto Dealer Bond?
The State of Florida mandates that all persons or businesses that buys, sells or trades three or more vehicles during a 12 month period must get a Florida Auto Dealers license. This includes retail sales, wholesale, or the leasing of motor vehicles as pursuant to Florida Statute 320.27 Section 1 paragraph B&C. Any licensed auto dealer must submit a $25,000 Florida auto dealer bond. Apply Now
What Does My Personal Credit Have To Do With The Auto Dealer Bond Premium?
Premiums of Florida 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 Florida Auto Dealer Bonds Expire?
The Florida auto dealer surety bond will expire on April 30th. This is not negotiable. This is mandatory per the State of Florida DHSMV. However, you can usually obtain a 2 year surety bond to reduce the time and money spent on renewing your dealer bond. The State of Florida will also allow you to renew your Florida auto dealers license for a 2 year term. 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 bond from Absolute Surety, you will need to file it with the Florida Department of Highway and Safety Motor Vehicles. You will need to provide both, the original FL surety bond along with the Power of Attorney. You can provide these to any local Florida DMV office.
The auto dealer bond is also known as the “MVD Bond, motor vehicle dealer bond, auto dealership bond, car dealer bond, etc. No matter what you call them…we can write them!