Used and pre-owned auto dealers must furnish evidence of a $25,000 Massachusetts motor vehicle dealer bond. The for this bond is contingent upon your good credit, and is at 2% of the bond's amount, $500 annually. Please call AmeriPro Surety Bonds today at: 844-589-9732.
Auto dealers who wish to be licensed by the Commonwealth are required to furnish and maintain evidence of an active surety bond.
AmeriPro Surety Bonds provides you with the Massachusetts auto dealer surety bond in the amount required by statutes as both a new (for first time licensees) and renewal surety bond (for existing licensees.)
The Massachusetts motor vehicle dealer bond is a $25,000 surety bond required of auto dealer licensees within the state.
More specifically, the Massachusetts auto dealer bond is required of Class 2 car dealers; that is, those who sale used or pre-owned vehicles (Massachusetts Generals Laws, Section 58: Classes).
Moreover, each dealership owned by you which operates under a different name, and which is licensed as Class 2, must maintain its own surety bond.
Pricing for an auto dealer surety bond in the Commonwealth will typically be determined by the following:
Additional Premium Payment Options
At $500 premium premium, your MA auto dealer bond is active for a one year period. Thereafter your bond and the premium renew. Our agency also offers you the option to prepay your bond up to 3 years. Prepayment of your premium allows you a savings over year to year renewal of the premium. It also, of course, lengthens the time between renewals.
The premium prepayment options and savings are as follows:
While the surety bond is required of Massachusetts Class 2 auto dealer licensees as a condition for licensing (the Commonwealth will not issue or renew a license without evidence of some financial responsibility), the purpose of this surety bond is for the residents of Massachusetts.
Among other protections offered the public, your auto dealer surety bond does the following:
In short, this motor vehicle dealer surety bond protects against acts of fraud, theft, malfeasance and misrepresentation in the operation of your auto dealership, and which causes some harm.
Such protections for the public also extend to wrongful acts committed by any employees, agents, and managers of your auto dealerships which are first judged as unlawful by a Commonwealth court.
(Section 58) goes into more detail as to other protections offered, and, moreover, and how a claim is paid against your surety bond.
The Massachusetts motor vehicle dealer bond is active for one year from the date of issuance, and thereafter the bond must be renewed.
You may be offered the opportunity to prepay the surety bond for up to 3 years, thereby offering you a savings on the premium over a year to year renewal.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout Massachusetts.
Our agency also offers surety bonds nationwide.
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