Arizona requires all auto dealerships operating in the state to purchase an auto dealership bond. The amount of a motor vehicle surety bond in Arizona varies by the type of vehicles the dealership sells. Auto dealer bonds are a form of surety bond that provide protection to consumers by ensuring that they have access to financial recompense should the dealership fail to fulfill their contractual obligations.
Viking Bond Service is a leading supplier of motor vehicle surety bonds in Arizona. Our team of bonding professionals is experienced at working with Arizona auto dealers to help them secure the right surety bond. Our application process is quick and easy; use the information below to get started today:
An auto dealer bond Arizona involves three parties:
The obligee - the agency that requires the bond (AZ MVD in this case)
The surety - the insurance company that backs the bond
The principle - the auto dealership that needs the bond
The state requires all auto dealerships to purchase a motor vehicle surety bond in Arizona. The bond amount depends on the type of business the dealership conducts. New and used motor dealers or public consignment auction dealers are required to have a bond of $100,000. Wholesale motor vehicle dealers and brokers, automotive recyclers, and auto auction dealers need to have a bond of $25,000.
A motor vehicle surety bond in Arizona is obtained through a bonding company like Viking Bond Service. You’ll need to submit a bond application in order to start the process. You may also be asked to submit supporting information with your application. The additional documentation required to underwrite the bond request includes a credit check and in some situations business financial records. The bonding company will provide a list of exactly what is needed for your individual surety bond request.
The premium amount for a motor vehicle surety bond in Arizona is calculated based on a number of factors including the bond amount, your credit score, and financial strength. This information is used to create a risk profile for the bond. Basically this means the bonding company will calculate how likely it is that a claim will be received against the bond. If the business has a strong history and good credit rating they will pay a lower premium for a bond than a business with questionable credit, although it is still possible to get a bond with bad credit. The premium for a motor dealer surety bond in Arizona will generally range between 1 and 4 percent of the bond amount.
Viking Bond Service offers an efficient, friendly, and knowledgeable bonding process. Our team of experienced bond experts can help you secure the auto dealership bond you need, when you need it. In fact, we respond to most quote requests the same day we receive the application.
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