Auto Dealer Bond North Carolina
Get an Auto Dealer Bond in North Carolina through Viking Bond Service
Research from the Alliance of Automobile Manufacturers helps illustrate the major impact motor vehicle sales have on North Carolina's economy. With almost $15 billion in 2018 sales on over 462,000 new cars and just as many used models, there are lots of vehicles being bought and sold. If this seems like an exciting entrepreneurial opportunity, you're right. But before you can legally sell vehicles, you need to get a license, which requires getting a North Carolina Auto Dealer Bond too. Viking Bond Service is here to explain how these bonds work and to help you obtain one in as little as 48 hours.
North Carolina Auto Dealership Bonds Explained
The North Carolina Motor Vehicle Dealer bond is a License Surety Bond that serves to protect North Carolina'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 North Carolina state legal statutes. A North Carolina Motor Vehicle Dealer bond may be required as part of the Motor Vehicle Dealer licensing process.
In North Carolina, the required Motor Vehicle Dealer bond amount is as follows:
- North Carolina, Motor Vehicle Dealer bond requirement – $50,000 Surety Bond for one place of business, $25,000 for each additional place of business
You should always check with the North Carolina Department of Transportation Division of Motor Vehicles, or requesting agency, for the most current required North Carolina Motor Vehicle Dealer bond amount as well as the required bond forms.
What parties are involved in an Auto Dealer Bond North Carolina?
North Carolina auto dealer surety bonds involve three parties:
- Principal - The auto dealer (you) is the principal. That means you're required to obtain the bond, keep it active, and pay for any claims filed against the bond.
- Obligee - The North Carolina Department of Transportation Division of Motor Vehicles is the obligee. That means they set the bond requirement and have the right to file claims against the bond if an auto dealer (the principal) breaks specific rules.
- Surety - The bond company is the surety. That means they issue the bond to the principal, and guarantee payment to the obligee for any valid claims if the principal is unable or unwilling to pay. When this happens, the surety has the right to collect that debt from the principal.
Who needs an Auto Dealer Bond in North Carolina?
You're allowed to sell five vehicles in a 12-month period without a license. If you sell more than that then you will need an auto dealer license, which lists having a North Carolina motor vehicle bond as one of the main requirements. Businesses that sell 6 or more vehicles without a license could face penalties ranging from fines and closures to even time behind bars. If you have questions about whether you need a North Carolina motor vehicle surety bond, reach out to the experts at Viking Bond Service.
How are Auto Dealer Bonds in North Carolina obtained?
First you find a surety company like Viking Bond Service that issues North Carolina auto dealer surety bonds. You will fill out an application with some basic information about your business, your background, and your personal finances, along with the same information from any business partners you have. The surety company will then quote you a premium price. After you pay the premium, the bond becomes active.
The cost to obtain an Auto Dealer Bond in North Carolina
You need a bond worth at least $50,000, meaning the surety company is willing to pay out that amount in claims. The cost of the bond is only 1-3% of the bond's actual value, so as little as $500. Your premium could be higher or lower than that based on your credit risk. Applicants with a low credit score or history of bankruptcy will pay a slightly higher percentage, but at a company like Viking Bond Service, they're rarely turned down.
How to renew a North Carolina Auto Dealer Bond?
When you get an auto dealer bond NC it's active for 12 months. Once it goes inactive, your motor vehicle dealer license lapses, making it illegal to continue selling cars. In order to prevent that from happening, Viking Bond Service will send you a renewal notice long before the deadline. Renewing a surety bond is typically a simple process with Viking. Your financial and credit standing will be reviewed. Improvements can lead to lower premiums going forward. However, red flags can also lead the opposite.
How Viking Bond Service can help you get a North Carolina Auto Dealer Bond
writes North Carolina 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 North Carolina Motor Vehicle Dealer bond applications and provide competitive quotes for them.
Request a North Carolina Motor Vehicle Bond Quote
The sooner you get your North Carolina auto dealer surety bond the sooner you can open your business. Get a quick quote from Viking Bond Service by completing our streamlined online application. Or get more information first by filling out the contact form on this page or calling one of our bond exerts at 1-888-278-7389.
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