From March 28, 2017 all New York State auto dealerships will need to have an auto dealer bond. These bonds are a type of license surety bond that provide a guarantee that an auto dealership will abide by state regulations. This provides a guarantee for consumers and ensures that there is a level of financial protection for them should the dealership break the terms of a car sale agreement.
The new auto bond regulations have changed the amount of bond coverage that is required of new and used car dealers in New York. The new rules split the dealerships into two tier levels: those who sell less than 50 cars per year, and those that sell more than 50 cars per calendar year. The dealerships in the lower tier will need a bond of $20,000. The auto dealers in the higher tier will need to purchase a $100,000 bond.
As mentioned above, New York State requires all auto dealerships to have an auto dealer bond. This rule is enforced by the New York State Department of Motor Vehicles.
The application process is relatively simple to obtain an auto dealer bond. To start you'll need to submit an application form along with the documents requested by the bonding company. These documents normally include business financial statements and credit information.
New York motor vehicle dealer bonds generally cost between one and four percent of the bond amount. The exact amount is determined by what risk level the bonding company places on the bond. The risk factor is determined by many factors including the financial records of the dealership and the business owners credit score. While people with a stronger financial and credit record will pay a lower premium for their motor vehicle surety bond in New York, we work with business owners of all credit levels.
Viking Bond Service can help you secure an New York motor vehicle dealer bond quickly and easily. Our dedicated team are bond experts with years of New York auto dealer surety dealer bond experience. We process most quote requests in 24 hours and help guide you through the application process so you get the bond you need when you need it.
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