Oklahoma Motor Vehicle Surety Bond
New and used car dealerships across Oklahoma sold over $46 billion worth of vehicles in 2018 according to the National Automobile Dealers Association. If you want to get involved with this lucrative industry, you will need to meet a number of requirements before opening a dealership, including obtaining an Oklahoma motor vehicle dealer bond.
What is an Oklahoma Motor Vehicle Surety Bond?
The Oklahoma motor vehicle dealer bond is a License Surety Bond that serves to protect Oklahoma'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 Oklahoma state legal statutes. An Oklahoma motor vehicle dealer bond may be required as part of the motor vehicle dealer licensing and/or vehicle dealer registration process.
How does an Oklahoma Motor Vehicle Bond work?
When a motor vehicle dealer breaks Oklahoma state laws of professional conduct - by selling someone a vehicle with the odometer rolled back, for example - the state may file a claim against the Oklahoma motor vehicle surety bond seeking compensation. The bond company guarantees payment of valid claims, but the bonded party has the final financial responsibility. By holding car dealers financially accountable for criminal or unethical acts, Oklahoma motor vehicle dealer bonds discourage bad behavior and help ensure the victims receive justice and restitution.
Who should get an Oklahoma Motor Vehicle Surety Bond?
Anyone who plans to sell new or used vehicles on a consistent basis. Essentially all motor vehicle dealerships require a bond, as well as most dealerships that sell ATVs, boats, and other kinds of transport vehicles. If you require a bond, it will likely be apparent as you're establishing your business. You can't operate legally without a bond, so don't put off obtaining one from a leading surety brokerage like Viking Bond Service.
Who are the parties involved in an Oklahoma Motor Vehicle Bond?
There are three parties involved in the bond agreement.
- Principal - The motor vehicle dealer and the bonded party. Principals must pay to obtain a bond and pay for any valid claims the obligee files against the bond.
- Obligee - The state of Oklahoma and the bond beneficiary. Any money received for claims goes into state funds or directly to affected consumers.
- Surety - The company that issues the bond. The surety agrees to pay for claims if the principal refuses, but the surety has the right to collect that debt from the principal with interest and fees added.
How much does an Oklahoma Motor Vehicle Surety Bond cost?
In Oklahoma, the required Motor Vehicle Dealer bond amount is as follows:
- Oklahoma, Used Car Dealer bond requirement – $25,000 Surety Bond
- Oklahoma, Wholesale Motor Vehicle Dealer bond requirement - $25,000 Surety Bond
You should always check with the Oklahoma used motor vehicle and parts commission, or requesting agency, for the most current required Oklahoma Motor Vehicle Dealer bond amount as well as the required bond forms. The cost to you, the motor vehicle dealer, is a small percentage of the bond total. The exact amount depends on your credit history and business record, which underwriters will evaluate when you submit your bond application. Learn more about the cost to you by requesting a quote today.
How are claims handled for Oklahoma Motor Vehicle Bond?
When the surety company receives a claim, it launches an investigation using whatever resources necessary. If the surety determines a claim is true, it will ask the principal to honor it, but if the principal is unable or unwilling, the surety guarantees payment up to the bond amount. At that point, the principal owes the surety the amount of the claim plus the cost of the investigation and any fees or interest. As a further incentive to follow the rules, it costs motor vehicle dealers more when the surety has to step in to settle claims.
Oklahoma Motor Vehicle Surety Bond License and Renewal
All Oklahoma motor vehicle bonds expire on December 31st of odd numbered years. Whenever you first secure a bond, it will remain valid until the end of the next odd number year, and when you renew it will remain valid for 2 years. Renewal involves submitting your financial information to the surety so they can recalculate your premium amount based on changes in your credit, meaning the amount could go up or down with each renewal.
How to apply for an Oklahoma Motor Vehicle Bond?
writes Oklahoma 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 Oklahoma Motor Vehicle Dealer bond applications and provide competitive quotes for them.
(See Also: Cost Expectations for Auto Dealer Bonds)
Get Your Business Rolling With Viking Bond Service
Do yourself and your business a favor and pick the right surety brokerage to work. Connect with our team by filling out the contact form on this page or by calling 888-278-7389. Or complete our online application to get a bond ASAP.
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