Auto Dealer Surety Bonds (Top 3 Questions)

Auto Dealer Surety Bonds

Auto Dealer Surety Bonds – Top 3 Questions ever received!

So you are a used car dealer and have been looking into Auto Dealer Surety Bonds and you still have some questions. Over the years, I’ve consistently seen some confusion about what exactly this bond does. It doesn’t protect your dealership from customers demanding their money back or anything like that; rather, the bond protects the Department of Motor Vehicles from any complaints filed against you as a result of selling vehicles with open recalls or liens on them.

It also protects the public from a variety of things a dealer could do from willful acts to violations the dealer may not even be aware of at the time. 

Below, you will find just a few of the most commonly-asked used car dealer questions: 

  1. How exactly does an Auto Dealer Surety Bond protect my dealership?
    • The protection that a surety bond provides is not going to benefit the auto dealer.
    • It’s meant to cover the general public, other car dealers, and the lenders that provide financing for inventory.
    •  
  2. One of my dealer friends told me that the surety company that writes my dealer bond isn’t important. And so for this reason, the bottom-line auto dealer bond price is the only thing that matters?
    • This is a common misconception because a dealer bond is different that dealer insurance.
    • You don’t want your bond carrier to pay claims without proper investigation. Why? YOU reimburse every bond claim so once they pay the claim, you are now responsible for payback.
  3. How should I budget for my Auto Dealer Surety Bond Cost?
    • The rate is typically between 1% and 9%, depending on your Experian Credit Score. 
    • The 2 other main factors are citizenship status and property ownership.
Auto Dealer Surety Bonds for less!

 

Most of these questions come from wholesalers, auto brokers, and retail dealers. But even with that said, seasoned dealers usually have a general idea of how this works. For that reason, we released this content in hopes of helping at least a few of you out there.

We know that this process can be overwhelming so please know that we are here to help!


So, you’re already a used car dealer and you know the ins and outs at this point. You’ve got inventory, customers, and vendors to juggle. But there’s one thing you don’t have to worry about: your Car Dealer Insurance! Your Car Dealer Bond LLC has some of California’s most renowned educators in the dealer insurance space.

So don’t just think of YCDB for surety bonds, but as experts in helping you understand and satisfy your insurance risk.


What is the difference between Dealer Insurance and Auto Dealer Surety Bonds?

https://youtu.be/0H9ZzPO-IEM

How can I obtain more free info? I am just getting my California Car Dealer License?

As a former pre-licensing educator for the California DMV, I have walked hundreds of people just like you through the step-by-step process of getting their California Auto Dealer License. Most of them had more questions after their pre-licensing education than before. In our experience, this is the exact time where most pre-licensing educators wash their hands of you.

I love helping used car dealer startups deal with an overly complex government bureau…the DMV. It’s like the old story about how you can’t teach a pig to sing – it wastes your time and it annoys the pig. The same is true for trying to get anything done at the DMV. If you want your startup company to succeed, let me help you cut through all of that red tape TODAY! 

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