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:
- All auto dealers in California must have an auto dealer bond in place
- The bond size is dependent on the type of business
- 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
- 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.