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DC Auto Dealer Bond

Those that are looking to set up shop in Washington, DC as an auto dealer will need to have a motor vehicle dealer bond. If you're in this situation, it's helpful to familiarize yourself with the basics of surety bonds and gain an understanding of the bonding process. At , we're committed to providing superior surety bond solutions for auto dealers across the country, as well as providing informational resources for those looking to learn about surety bonds.

What is a DC Auto Dealer Bond?

The Washington, District of Columbia (DC) Motor Vehicle Dealer bond is a License Surety Bond that serves to protect Washington, DC's citizens by providing a path for recourse in situations where an Auto Dealer does not adhere to the laws, rules, and regulations as set in Washington, DC legal statutes. A Washington, DC Motor Vehicle Dealer bond may be required as part of the Motor Vehicle Dealer licensing and/or dealer vehicle registration process.

In Washington, DC, the required Motor Vehicle Dealer bond amounts are as follows:

  • Washington, DC, New Motor Vehicle Dealer bond requirement - $25,000 Surety Bond
  • Washington, DC, Used Motor Vehicle Dealer bond requirement - $10,000 Surety Bond

You should always check with the Washington, DC Department of Consumer and Regulatory Affairs, or requesting agency, for the most current required Washington, DC Motor Vehicle Dealer bond amount as well as the required bond forms.

To understand how a DC motor vehicle surety bond works, it's helpful to familiarize yourself with the fundamentals of surety bonds. Every surety bond follows the same basic structure, which involves three parties:

  • The obligee, which is the party that requires the bond. In this case, it's the District of Columbia, requiring the bond on behalf of its citizens.
  • The principal, which is the party that needs to be bonded. That's you, the auto dealer, who is looking to set up shop in DC. The principal has an obligation to adhere to certain rules and regulations set forth by the obligee.
  • The surety issues the surety bond and steps in when a claim is made against it. If the obligee is determined to have a valid claim, then the surety will issue financial compensation. The principal is then responsible for paying back the surety for the dispersed funds.

How to Get an Auto Dealer Bond in DC

writes Washington, DC Motor Vehicle Dealer bonds. We can assist both clients with good credit, and clients with bad credit. Typically, the worse the credit, the higher the surety bond premium will be. In either case, we always work to get the best quote for you. Viking has partnered with markets that welcome Washington, DC Motor Vehicle Dealer bond applications and provide competitive quotes for them.

At , we have decades of experience supplying surety bond solutions to auto dealers across the country. Reach out to one of our Surety Bond Experts to get started today.

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