IA Auto Dealer Bond
Iowa Auto Dealer Bond

Do I need a Iowa auto dealer bond?

If you sell vehicles in the Iowa, you will need a $75,000 IA auto dealer bond. The Motor Vehicle Division of the state’s Department of Transportation used to require a $50,000 bond, but it was increased in 2016.

 

Purchasing this bond is your promise to the state of Iowa and to your customers that you will uphold the terms of your license and of the bond. If you don’t and cause financial damage to any customers, they can file a claim against your bond to seek restitution. If the claim is valid, your surety company takes care of the initial payout (up to the bond’s full coverage amount) and you reimburse the surety.

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How much does this surety bond cost?

Your Iowa motor vehicle dealer surety bond won’t cost you $75,000 — you pay a percentage of that amount, called a premium, annually. Your premium could be as low 0.5% of the bond amount. That’s just $375! Call Absolute Surety at 855-689-5106 for your Iowa auto dealer bond quote today!

 

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How does my credit score affect my bond premium?

The better your credit score, the lower your Iowa motor vehicle dealer surety bond premium will be. If you’ve had a surety bond previously with no claims made, that’s good news. If you’re a reliable borrower, you are a lower risk to the surety company and can get a great rate for your bond.

 

But don’t worry if your credit isn’t perfect. Absolute Surety can help you get the best surety bond rate!

 

When does my IA auto dealer bond expire?

Most Iowa auto dealer bonds expire one year from the date they are issued.  However, you may qualify for a two-year bond term. Talk to a surety bond expert at solute Surety to see if you qualify for a discount on your two-year auto dealer bond!

 

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No matter if your bond has a one- or two-year term, it usually expires around the same time you got licensed since it’s part of the licensing process. Iowa auto dealer licenses expire on December 31 in even years.

 

I just purchased my IA surety bond — now what?

After purchasing your bond, you will file it with the Iowa DOT.  Send the surety bond along with your application and other required forms to the DOT:

 

Office of Vehicle & Motor Carrier Services

Iowa Department of Transportation

P.O. Box 9278

Des Moines, Iowa 50306-9278

 

The surety company can cancel your IA auto dealer bond with 30 days’ written notice to the Iowa DOT and the principal. Don’t forget to send an updated surety bond to the state each time you get it renewed.

 

Give Absolute Surety a call to get a quote for your Iowa motor vehicle dealer surety bond!

 

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Resources

Iowa auto dealer licensing information

2016 SF 2228 — Bond increase

Code of Iowa — Chs. 321 and 322