Tennessee Motor Vehicle Dealer Bond |
AmeriPro Surety Bonds | 844-589-9732
Auto Dealers – Tennessee
The licensing and regulation of auto dealer in Tennessee is overseen by the Tennessee Motor Vehicle Commission.
As a requirement for licensing, whether you sale new and/or used vehicles is that evidence of a surety bond must be furnished to the Commission.
AmeriPro Surety Bonds offers this surety bond for both first time licensees and those who need to renew an existing surety bond.
Tennessee Motor Vehicle Bond: Amount Required and Duration
According to state statutes, 55-17-111, the Tennessee motor vehicle dealer bond is a $50,000 surety bond required of licensees.
The bond is active from 2 years from the last date of the month in which you purchase your bond.
If the TN motor vehicle dealer bond, for example, is purchased on January 20, 2020, then this auto dealer surety bond is active until January 31st, 2022.
An option does exist to purchase the bond for one year, because of its lower price; however, you will want to make sure to renew your bond before its expiration.
As an applicant for the Tennessee motor vehicle dealer bond, the premium is the price you will pay for its issuance.
The premium amount will be determined by a surety bond application and a credit inquiry. AmeriPro Surety Bonds utilizes a soft inquiry which does not impact your score.
Well qualified applicants may pay as little as 1% for the auto dealer bond; however, the amount that you will pay will vary considerably.
Premium amounts may range from as little as 1% to up to 5%, and very rarely higher.
Our agency will work with you to find you the fairest surety bond pricing.
The Purpose of this Surety Bond
The purpose of a Tennessee auto dealer bond is to serve as a financial guarantee which will ensure your compliance with all rules, statutes, and regulations concerning the sales of new and used vehicles in the state.
Specifically, this auto dealer bond is for the benefit of consumers who:
- Purchase a vehicle in cases where the dealer failed to pay title and/or registration fees, or taxes;
- Purchase a vehicle that is not free of encumbrance of liens and prior owners.
The liability of the surety bond, however, will not exceed the aggregate amount of $50,000. As principal of this bond you are responsible for all claims paid by your surety.
AmeriPro Surety Bonds is a surety bonds only agency which provides license and permit, contractor, court, and fiduciary surety bonds throughout Tennessee.
We also provide surety bonds nationwide. Please call our agency today at:
Or, you may fill out the form below and an agent will contact you.