Pennsylvania Motor Vehicle Dealer Bond
AmeriPro Surety Bonds | 844-589-9732
Pennsylvania Motor Vehicle Dealers
Pennsylvania motor vehicle dealers and Pennsylvania manufacturers of motor vehicles are both regulated by the state’s Department of Transportation.
As one of the conditions for licensing, Pennsylvania auto dealers are required to obtain at least one $20,000 surety bond.
AmeriPro Surety Bonds offers you both a first time and renewal PA auto dealer bond.
Pennyslvania Motor Vehicle Dealer Bond: Amount Required
As mentioned above, the Pennsylvania motor vehicle dealer bond is a $20,000 surety bond; however, the bond amount required is $20,000 surety bond for each business location of a Pennsylvania auto dealership.
Pennsylvania Motor Vehicle Dealer Bond: The Purpose
The purpose of the Pennsylvania motor vehicle dealer bond is to protect your customers from any acts of fraud, theft, or criminal misconduct committed by an auto dealership, its employees, agents, or owners in their professional conduct.
The bond serves as a financial guarantee – again, solely for the Department of Transportation and the people of the Commonwealth of Pennsylvania — that a licensed auto dealership will abide by all laws and statutes governing operations of a dealership.
The bond, therefore, it is not an insurance policy.
Its existence allows those who can demonstrate financial harm from a dealership to file against the bond up to the bond’s $20,000 amount.
And very much unlike an insurance policy, should a surety pay a surety bond claim, it is your legal responsibility to reimburse the surety in full for all costs involved in claim’s resolution.
Pennsylvania Motor Vehicle Dealer Bond: The Premium
The following will determine the amount of your motor vehicle dealer bond:
- The amount of the surety bond that you require. Recall that the $20,000 motor vehicle dealer bond amount is for each location of your dealership;
- Information provided on an application (AmeriPro Surety Bonds can help you complete your application with you directly over the phone);
- A standard credit check.
The credit check is perhaps the single largest factor in determining the premium amount required.
Applicants who require a surety bond for $20,000 will require less information than those whose surety bond amounts are $60,000 and more.
Larger bond amounts may – or may not — require bank statements, information on investments, income, net worth, and real property owned.
None of these more stringent applications requirements is to make your life more difficult.
But, as an agency, we like our customers to have an idea what they may expect in the applicant process.
In all cases, our goal is to only help you get your bond filed quickly–and to find you the best surety bond pricing.
Applicants with good credit scores may pay as little as a few small percentages of the bond’s face amount annually.
Again, however, that is very general statement.
The only thing that really matters, is what YOU will pay. And that is determined by the criteria referenced above.
Duration of Your Motor Vehicle Dealer Bond
This motor vehicle dealer bond renews annually and must be kept active and to run concurrently with the license issued by the state’s Department of Transportation.
A lapse in your bond coverage could potentially have a domino effect:
It can cause the suspension of your license, temporarily bringing your operations to a halt, and costing you time and money in sales revenue.
Well ahead of your bond renewal, however, a renewal bill will be mailed to the address on file from AmeriPro Surety Bonds.
About Our Agency
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary bonds throughout the Commonwealth of Pennsylvania.
We also provide surety bonds nationwide.
You can rest assured that we are both committed and focused on providing you with the motor vehicle bond you need at the best pricing available.
Please call our agency today: 844-589-9732