Here’s an interesting data point from the industry experts at the Auto Alliance: The average American vehicle is 11.6 years old, but the average vehicle in Oklahoma is just 10.1 years old. According to the data, Oklahomans replace their cars and trucks more often than the average person, making this a great state for auto sales. In fact, the auto industry accounted for almost $25 billion of sales in 2018 alone and employed over 73,000 people. If you’re eager to jump into this booming industry, you need an Oklahoma auto dealer bond first. This guide will show you exactly how to get one.
Most importantly, having an auto dealer bond is a requirement for getting an auto dealer license. If you intend to sell five or more vehicles within a 12-month period, you’re required to have a license. All states require bonds as part of the licensure process in order to protect the public from the risk of unscrupulous auto dealers. Essentially, bonds make auto dealers financially accountable if they break state laws or codes of conduct – like rolling back an odometer, for example. There are three parties involved in the bond agreement:
Basically anyone involved with commercial vehicle sales needs a license and therefore also needs an auto dealer bond. That applies to used car dealers, wholesalers, dealer auctions, and crushers as well as manufactured home builders and dealers. Without a bond, it’s impossible to get an auto dealer license, and if the bond lapses then the license becomes invalid. Any dealer caught conducting business without a license faces penalties ranging from hefty fines to permanent loss of license or even jail time in extreme instances. Any of those consequences could be disastrous personally and professionally, which helps to emphasize why it’s so important to have an Oklahoma auto dealer bond at all times.
You need a bond before you can get a license, so it’s best to get started as soon as possible. Follow these steps:
The first and most important step is partnering with the right surety company. Viking Bond Service already works with auto dealers across Oklahoma, and we’re excited to serve you too. Rely on us for comprehensive service, a speedy bonding process, and competitive premium prices, even for applicants with bad credit. Please contact us if you have questions. If you would like more information about bonds in general, consult this free resource that covers everything.
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