A motor vehicle dealer bond is a type of license surety bond. All auto dealers in Texas, except those who are franchised, are required by the state to purchase an auto dealer bond. These bonds help protect car buyers in Texas by providing them with a form of recourse should the dealer break their contractual agreement.
Viking bond service is one of the premier auto dealer bond companies in Texas. We’re here to help make the process fast, easy, and understandable. We’ve outlined the key points of Texas auto dealer surety bonds below.
An auto dealer surety bond will involve three parties:
Texas has strict rules when it comes to licensing used car dealers in the state. One of these rules is that all dealers, unless they are franchised, must buy and maintain an auto dealer bond. If you are looking to become an auto dealer or you’re already a licensed motor vehicle dealer you need a Texas motor vehicle dealer bond.
Auto dealer bonds in Texas are obtained through a bonding company like Viking Bond Service. All applicants must complete an application form and supply the required supporting documentation. The supporting documents may include your businesses financials, resume, and credit score. The bonding company will supply a premium quote and once the premium is paid and all paperwork is signed, you will be provided with the auto dealer bond.
The cost of the bond is calculated based on the bond amount (which in Texas is $25,000) and the deemed risk of the bond. The bonding company will assess how likely it is that a claim will be placed against the bond based on the supporting paperwork you submit with your application. This means that applicants with higher credit scores, stable financials, and stronger business resumes will receive lower quotes. Even if your credit score is low Viking Bond Service can still help you to secure a Texas motor vehicle surety bond.
At Viking Bond Service we’ve built our business on friendly and efficient customer service. We make it quick and easy to apply for a bond by providing a premium quote for most Texas motor vehicle surety bond applications within 24 hours.
Viking can get you from bond application to bond in hand quick and easy. We work with both good and bad credit clients. Get started here.
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Need a Bond? Here's how to get one. Read here for information about the bonding process.