Alabama Motor Vehicle Dealer Bond |
AmeriPro Surety Bonds | 844-589-9732
Auto Dealers – Alabama
Auto dealers (or motor vehicle dealers) in Alabama are licensed and regulated by the state’s Department of Revenue. If you sell 5 or more vehicles within a 12 month period—you’re a dealer and you require licensing! The dealer licensing fees are extraordinarily reasonable.
- Each additional place of business – 5.00;
- New and used dealers – $25.00 licensing fee;
- Off-site sales licenses – $25.00
- Rebuilder – $25.00
- Wholesalers – $25.00 fee.
The application for a dealer license is submitted electronically.
In addition to the above fees, a condition of licensing is that the appropriate surety bond and insurance policy be obtained.
Our agency provides the surety bond for a rock bottom low premium for those who qualify.
Amount of Surety Bond – Qualifying – Estimated Premium
The Alabama motor vehicle dealer bond is a $25,000 surety bond required as a condition of licensing.
Qualifying for the bond is done with the following:
- Completion of a surety bond application (our agency can begin the application with you on the phone; however you will need to sign the application before it can be reviewed);
- An underwriter review which includes a credit inquiry. We note that surety agencies utilize “soft inquiries” — these are the types which don’t adversely affect (lower) your score.
For those who qualify, the Alabama auto dealer bond may have a premium as low as $250, annually. However, the premium amount will be contingent on the results of your credit and information supplied in the application process.
Purpose of Your Surety Bond Requirement
The surety bond protects the Department and the people of the state of Alabama by ensuring that you will be in compliance with all laws and regulations concerning auto dealing in Alabama.
As principal for this bond, you are responsible to indemnify the surety for any claims paid against your bond; however, excluding attorney fees and costs, no such claim will exceed in the aggregate the total amount of surety required.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout Alabama.
Our surety agency also provides surety bonds nationwide.
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