The North Carolina Department of Transportation --- Division of Motor Vehicles regulates and licenses automobile dealerships in the state.
The Department requires one --- and possibly more – auto dealer surety bonds in two different amounts.
AmeriPro Surety Bonds offers both auto dealership surety bonds for your professional compliance.
Auto dealerships operating in North Carolina must maintain:
The state refers to this as a $50,000 surety bond for an established “salesroom”; and each location thereafter requiring an additional $25,000 surety bond for their respective “salesroom”.
The pricing for the NC motor vehicle dealer bond will be dependent on several factors.
At least one $50,000 surety bond is required; however, the number of $25,000 surety bonds (if there will be any) will be determined by the number of additional locations.
Typically, and as a very broad general rule, an applicant with good credit may pay as little as 1% annually for the $50,000 surety bond. The same is likewise true for the $25,000 surety bond.
However, in both cases, the amount that you will be required to pay as the premium will be determined by information provided in your surety application, and, perhaps most importantly, your credit score.
Therefore, the premium required may vary greatly from one person to the next; however, AmeriPro Surety Bonds will work to find you the best surety bond premium which is completely customized for you, personally.
The bond term is active for one year from the date of issuance. Thereafter, it must be renewed. A surety bond must always remain actively on file in order to operate as an auto dealership in the state.
The purpose of this surety bond is a financial guarantee for the people of the state of North Carolina (and anyone purchasing or leasing a vehicle) that a licensed auto dealer will comply with all laws regulating auto dealerships.
The surety bond, while purchased by you, is for others, namely, your customers. It is designed to protect your customers against acts of fraud, theft, negligence and other acts of malfeasance.
While the bond is for the protection of others, as principal, you maintain the legal responsibility of reimbursing the surety in full for all fees and costs paid on claims against your surety bond, if such were ever the case.
AmeriPro Surety Bonds is a surety bonds only agency which provides license and permit, contractor, court, and fiduciary surety bonds throughout North Carolina.
Our agency also provides surety bonds nationwide.
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