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Iowa Motor Vehicle Dealer, Iowa Auto Dealer Bond:

The Iowa Motor Vehicle Dealer bond is a License Surety Bond that serves to protect Iowa'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 Iowa state legal statutes. An Iowa Motor Vehicle Dealer bond may be required as part of the Motor Vehicle Dealer licensing and/or vehicle registration process.

In Iowa, the required Motor Vehicle Dealer bond amount is as follows:

  • Iowa, Motor Vehicle Dealer bond requirement - $75,000 Surety Bond

You should always check with the Iowa Department of Transportation, or requesting agency, for the most current required Iowa Motor Vehicle Dealer bond amount as well as the required bond forms.

What is an Iowa Auto Dealer Bond?

This type of surety bond is an agreement between three parties:

  • The obligee is the entity that requires auto dealers to obtain a bond. In this case, the Iowa Department of Transportation is the obligee. Officials there will set the bond limit and hold auto dealers accountable if they fail to get a bond.
  • The principal is the entity that takes out the Iowa auto dealer surety bond, most likely you. As the principal, you take financial responsibility for the bond premiums as well as any claims made against the bond.
  • The surety is the entity that issues the bond. Surety companies investigate whether claims made against the bond are valid, and they accept the risk if the principal doesn't pay the claim. Even though the principal has the ultimate financial responsibility, the surety company and the bonds they issue exist to guarantee that claims are paid to the public.

Who Needs an Iowa Auto Dealer Surety Bond?

It's illegal to sell vehicles in Iowa without an auto dealer license, and it's impossible to obtain a license without the required surety bond. Failing to obtain a bond or letting the bond renewal lapse exposes you and your business to some significant penalties including lifetime forfeiture of license, hefty fines, and possibly even jail time. According to Iowa law, if you intend to sell more than 5 vehicles or more in a 12 month period you must have an Iowa auto dealer bond. Viking Bond Service is available to begin evaluating your bond application at any time.

How Much Will an Iowa Motor Vehicle Bond Cost?

Even though the required bond provides $75,000 of coverage, the cost of the premium is a small percentage of that, usually around 1-3% of the required bond amount. How much you pay is based on your financial risk. Bond premiums must be paid upfront to obtain the bond, then again every time the bond is renewed, typically annually. Budgeting for the premium is important because the cost of not having a bond is always more than the bond itself. To find out exactly how much your bond will cost, apply for a quote from Viking Bond Service.

How to Obtain an Iowa Motor Vehicle Surety Bond

Obtaining a bond is a requirement for every motor vehicle dealer in Iowa, along with lots of other types of businesses across the state and country. Therefore, companies like Viking Bond Service make it quick and easy to apply. All you need to supply is the following:

  • Supply basic information about the business
  • Provide background on the business owner(s)
  • Turn over any additional information requested by our team if requested.

It doesn't take long to find the required information and complete the application. Viking Bond Service will evaluate this information to decide whether you're an acceptable financial risk. Having bad credit doesn't necessarily a disqualify you, it just means that you may have to pay a higher premium as the perceived risk of providing the bond is higher. Decisions about Iowa auto dealer bonds are typically made the same day the bond application is received. It may not take long, but you should still apply for a bond as soon as you know your auto business needs one.

Getting Started With Your Iowa Auto Dealer Bond

Viking Bond Service, Inc. writes Iowa 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 Bond Service has partnered with markets that welcome Iowa Motor Vehicle Dealer bond applications and provide competitive quotes for them.

See Also: Cost Expectations for Auto Dealer Bonds

Request a Motor Vehicle Dealer Bond Quote:

To obtain a Iowa Auto Dealer Surety Bond quote or for more information on any of Viking Bond Service's surety bonds call us at 1-888-278-7389 to speak with one of our representatives who will be happy to help you. You can also contact us by completing our online application, the contact form on the current page, or by emailing us and one of our agents will contact you shortly.

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