New Hampshire Auto Dealer Bond
Get an Auto Dealer Bond in New Hampshire through Viking Bond Service
Auto sales are brisk in New Hampshire, coming from an estimated 134 new car dealerships and totaling $6 billion annually according to the National Automobile Dealer Association. If you're eager to enter this booming industry, you will need a bond first. Rely on Viking Bond Service to provide you with all the information you need, along with the New Hampshire Auto Dealer surety bond you require.
New Hampshire Auto Dealer Bonds Explained
The New Hampshire Motor Vehicle Dealer bond is a License Surety Bond that serves to protect New Hampshire'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 New Hampshire state legal statutes. A New Hampshire Motor Vehicle Dealer bond may be required as part of the Motor Vehicle Dealer licensing and/or vehicle registration process.
In New Hampshire, the required Motor Vehicle Dealer bond amount is as follows:
- New Hampshire, Motor Vehicle Dealer bond requirement – $25,000 Surety Bond
You should always check with the New Hampshire Division of Motor Vehicles, or requesting agency, for the most current required New Hampshire Motor Vehicle Dealer bond amount as well as the required bond forms.
What Parties Are Involved in a New Hampshire Motor Vehicle Dealer Bond?
When you get a New Hampshire motor vehicle bond, you are one of three parties involved:
- The principal obtains the bond and pays for any claims filed against the bond
- The obligee requires the bond and is the beneficiary of any claims filed.
- The surety issues the bond and guarantees payment of valid claims.
Who Needs an Auto Dealer Bond in New Hampshire?
New Hampshire considers anyone who expects to sell five or more vehicles (new or used) within a 12 month period to be an auto dealer. All auto dealers must have a state license, which requires a getting a New Hampshire motor vehicle surety bond first. Anyone caught selling vehicles without a license is subject to penalties including fines, permanent loss of license, or jail time in extreme circumstances.
How Are Auto Dealer Bonds in New Hampshire Obtained?
You will need to go through a surety company with the authority to issue New Hampshire auto dealer surety bonds. Viking Bond Service is one example. You will complete a bond application that underwriters will use to evaluate your credit worthiness. The surety will then quote you a price for the bond premium. Once you pay, the surety will provide you with paperwork proving you have a New Hampshire auto dealer bond that meets the state requirements.
The Cost to Obtain an Auto Dealer Bond in New Hampshire
Bonds cost a small percentage of their total value. You need a bond valued at $25,000, but the price of the premium will only be around 1% to 4% — less if you have good credit and more if you have bad credit. Bonds are active for one year, and your renew them by paying the premium again, so start planning for this annual cost. Less certain but potentially more expensive is the cost of claims. As long as you sell vehicles according to the rules of New Hampshire, no claims will be filed and therefore will cost nothing.
How to Renew a New Hampshire Auto Dealer Bond?
Your surety company will inform you when your bond is close to expiring. Since you need to keep your bond active to keep your auto dealer license valid, renewal is more or less mandatory. When you renew, you will submit current information about your business revenues and personal finances. Underwriters at the surety will calculate your risk and potentially raise or lower your premium price based on the results.
How Viking Bond Service Can Help You Get a New Hampshire Auto Dealer Bond
writes New Hampshire 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 New Hampshire Motor Vehicle Dealer bond applications and provide competitive quotes for them.
Request a New Hampshire Motor Vehicle Dealer Bond Quote
The best time to request a bond quote is as soon as you discover you need a bond. Feel free to contact the team at Viking Bond Service if you have questions about anything. You can reach us at 1-888-278-7389 or by filling out the contact form on this page. Whenever you're ready, fill out our online bond application and expect to get your quote in about 24 hours!
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