California auto dealer bonds—what do they mean for your auto dealership?

 

California auto dealer bonds—what do they mean for your auto dealership?

If you’re an auto dealer in California you probably have some questions about auto dealer bonds! Viking Bond Service is here to help. Let’s start with some quick facts:

  1. All auto dealers in California must have an auto dealer bond in place
  2. The bond size is dependent on the type of business
  3. You’ll need to maintain a bond at all times while you are operating as an auto dealer in California, it’s a licensing requirement enforced by the California Department of Motor Vehicles
  4. Auto dealer bonds generally last for one year and must be renewed annually

What this means for your auto dealership:

  • You must maintain an active bond at all times

Basically this means that you’ll need to apply for a bond and renew it every year to ensure that your auto dealership complies with state auto dealership regulations. The California Department of Motor Vehicles requires that auto dealers maintain an active bond to provide a form of financial recompense for parties who suffer financial loss due to the actions of the dealer. In fact, the California DMV requires you to have an auto dealer bond in place to apply for and keep your auto dealer license.

  • Your obligations as a bond principle (the person who takes out the bond)

By applying for a bond and maintaining an auto dealer license you agree to not partake in any fraudulent activity that will cause financial loss to your clients.  If the surety is required to pay out on your behalf, you will be required to repay the surety.

Save time and money by choosing the right bonding company

Although obtaining and maintaining an auto dealer bond can take a huge amount of time and effort, it doesn’t have to.  To help you focus your energy on running your business it’s important to work with a good bonding company who can make the process quick and easy. Selecting a trusted and established bonding company will not only save you time but you can rest assured that they have the experience to track down the best rate for the bond you need.

California Auto Dealer Bonds

For more information about California auto dealer bonds including required bond amounts, the application process, and how much auto dealer bonds cost in California, visit Viking Bond’s California auto dealer bond page.

5 Licenses that you didn’t know required a surety bond

 5 Licenses that you didn't know required a surety bond

If you’re planning to apply for a state license to operate your business you may be surprised to find out that you need a surety bond! In many cases these commercial bonds are required as part of the business license application process. We’ve picked out five of the less well-known bond types below:

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How Used Car Dealer Bonds will Change in 2017

How used car dealer bonds will change in 2017

If you’re a used car dealer in New York State your surety bonding requirements are about to change! Thanks to the New York Assembly Bill 8166 the state is about to bring in key changes that used car dealers need to be aware of. Although the bill passed in 2016, its influence will only begin on March 28, 2017, when the bill comes into effect.

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How Motor Vehicle Dealer Bonds Work

How Motor Vehicle Dealer Bonds Work

Auto dealers are a big part of the transportation industry and our society at large, providing the bridge between auto manufacturers and consumers. This crucial part of our economy and culture carries with it a large responsibility, so auto dealers must adhere to local laws and regulations and follow ethical business practices. Motor vehicle dealer surety bonds provide assurances that dealers will behave legally and ethically.

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History of the Surety Bond [Infographic]

History of the Surety BondViking Bond Infographic (1)

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Everything You Need to Know About Freight Broker Bonds

 

Everything You Need to Know About Freight Broker Bonds

Freight brokers are an important force in the American economy, helping connect shippers of products with carriers to make sure that deliveries are made, keeping the world going round and round. In order to become a freight broker and join this group of crucial service businesses, you need to obtain a freight broker bond.

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Viking Bond – Contractors Bond Guide: A Surety Bond Guide for The Construction Industry

Overview:

In many states, from the day contractors receive their licenses, they have to be bonded. They must also secure surety bonds for many projects they take on.

 A Surety Bond Guide for The Construction Industry

This guide will serve as an introduction to what kinds of surety bonds you will need as a contractor, when you will need them, how much they will cost, why you need them, and how to get them.

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