What is an auto dealership surety bond?
As part of the application procedure for a Motor Vehicle Dealer License in Ohio, used car dealers must purchase the Motor Vehicle Dealer Bond. The auto dealership surety bond guarantees that if a car dealer fails to comply with licensing standards, the public will be compensated and that the dealer will pay all required taxes and fees to the State of Ohio. In a nutshell, a bond is a sort of insurance that protects the general public in the event that a dealer violates licensing rules.
Why does your auto dealership need a surety bond?
The license and rules were enacted by the Ohio government to guarantee that dealers follow ethical business practices and pay all appropriate taxes and fees. To be eligible for licensure, used auto dealers must obtain and maintain a $25,000 motor vehicle title defect surety bond to offer a financial guarantee for the enforcement of the license requirement.
How can Catanzaro Insurance help with your auto dealership surety bond?
The annual cost of the $25,000 Ohio Motor Vehicle Dealer surety bond starts at $150. Insurance companies set rates based on a variety of factors, including your customer’s credit score and prior experience. Catanzaro Insurance makes obtaining a bond quick and easy, the typical turnaround for an auto dealership surety bond is within one business day.
In need of a surety bond for your auto dealership and want our help? Fill out the form below or give us a call today! (614) 489-8383 option 1.
Check out our article on how to obtain an auto dealership license in Ohio.
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