Different states have very different requirements in conditions of their motor vehicle dealer bonds. These a genuine are needed by state laws so as to run a car dealership, and it’s really essential to understand how they may differ in certain locales, and what may be required of you and your business.
Nevertheless that’s not the only way that auto dealership bonds can be different from one another. There’s also the matter of renewal term, and expiration date. Bonds are typically made viable for either one or two year intervals.
A state may have a set expiration date for renewal, such as Georgia, where their two year term ends March 31st in even-numbered years. Elsewhere, they may simply be renewed at the day when you first obtained it, as in Tennessee, when their two yr term expires the previous day of the month of issuance for you.
Another way that your auto dealer bond needs may differ is the sort of dealership that you’re operating. Certain states don’t differentiate, and just lump every person in the same class. Other towns though very carefully and finely break down dealers into different categories based after the actual sell.
In Florida, it’s about the sort of auto dealer bond. You will find half a dozen different dealership licenses with varying needs for bonds, based after whether you sell used cars, new cars, or both, or different types of vehicle classes, such as recreational vehicles.
Inside Louisiana on the other hand, they differentiate based after volume. For dealers who sell less than 120 vehicles in a 12 30 days period, the bond has a minimum requirement of $20, 000. For retailers who sell more than 120 vehicles, the bond is raised to a $35, 000 minimum.
Keep in mind that to keep your dealership license in good standing there may be other requirements as well. Many says require garage liability insurance in order to obtain and maintain a dealer’s permit. In other states, as compared with to garage liability, it could be a vehicle liability coverage.
Be sure to work with an experienced professional who has experience in your local area. He or she should be able to clarify to you personally the requirements for auto dealer bonds in your state, and all of one other specifics and mandates that you require to pay attention to in order to keep your license in good position, while also fully safeguarding yourself and your business.
John Rothschild is the owner of ACI Insurance policy Services, a leading supplier of Florida dealer bonds for more than 12 years. ACI is known for their customer service, their comprehensive experience and knowledge of the industry, and their affordable rates, and they’re going to do everything they can to meet the needs of their clients.