The surety bond requirement of Minnesota auto dealers applies to the following professions:
Auto dealers are regulated by the Minnesota Department of Public Safety (DPS). The Department is the is also the entity which requires you to obtain the surety bond.
The Minnesota motor vehicle dealer bond is a $50,000 surety bond required of any auto dealers listed in any of the above categories. There is a $5,000 surety bond amount rquired for boat, snowmobile, and motorized cycle dealers.
Our discussion on pricing refers to the $50,000 surety bond amount.
Qualifying is by means of a standard surety bond application (really, in general, your name, company name, personal information, and social security number), along with a credit inquiry.
The credit inquiry utilized by our agency is a soft inquiry which will have no adverse impact on your credit score.
The annual premium may typically vary anywhere between $750 - $1000; however, the amount you may be required to pay can vary somewhat from these amounts.
To be clear, the biggest determining factor for the premium amount is your credit score.
Once approved and the payment of the premium is received by our agency, we will send the bond to you immediately. Options exist to have the bond sent overnight if required.
We can also email you a copy of the bond for no additional charge.
Your Minnesota motor vehicle dealer bond is issued for a standard term of one year. In some cases, the bond may allow a premium prepayment of 2 or 3 years.
While entirely up to you, prepayment allows you a savings vis-a-vis year to year renewal of your surety bond premium.
Motor vehicle dealers are provided a state-issued dealer guide which goes into great detail about the duties of various Minnesota dealers.
The purpose of this particular surety bond requirement is to serve as a financial guarantee which ensures your agreement to pay all taxes, licensing fees, and penalties which may be assessed by the Department, and according to Minnesota Statutes, section 168.27.
AmeriPro Surety Bonds is a surety bonds only agency. We provide license and permit, fiduciary, and court bonds throughout Minnesota.
Our agency also provides surety bonds nationwide.
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