An Alabama motor vehicle dealer (designated agent) bond is necessary for auto dealerships in the country to obtain a license to buy or sell vehicles. The Alabama motor vehicle dealer/ designated agent bond is in place to protect the customer. The bond keeps the dealership in accordance with the state and federal laws for operating a facility for buying and selling cars. If these laws are broken, causing financial harm to a customer, the customer can make a claim against the bond. In addition, the bond ensures the public is compensated for any damages resulting from a licensed business breaking any laws.
If a customer files a claim against your bond, it must be investigated by the Department of Revenue and the court. The Department of Revenue investigates the claim's legitimacy against the motor vehicle company while the court has the final judgment.
The requirements for getting an Alabama auto dealer license include the following.
How much the bond will cost depends largely on credit. The bond being posted is $50,000, and applicants with strong financial credentials may qualify to pay as little as 1–5% of the bond amount, meaning the cost paid will be between $500–$2,500. Contact the experienced surety agents with The ProSure Group today to request a free Alabama motor vehicle dealer/designated agent bond quote!
A surety bond is needed in almost every state to obtain a license to sell or buy vehicles. All businesses are required to purchase and file a bond to activate their license. Motor vehicle dealer bonds provide financial protection to regulate the industry by ensuring customers are receiving a reliable car, along with protecting the creditors and governments. In addition, the surety bond guarantees an auto dealer will operate in compliance with ethical and legal standards. The Alabama Department of Revenue-Motor Vehicle requires the bond to be filed with them to receive your license to buy or sell motor vehicles.
This type of surety bond is considered continuous, but you must keep it active by renewing it every year before September 30. The bond gets renewed at the same time your license is getting renewed. Renewing your bond and license will keep you an active motor vehicle dealer. However, the renewal price may differ from year to year depending on a personal credit or any claims against your bond the previous year/years.
Contact The ProSure Group! With over 23 years of experience as trusted surety bond experts, The ProSure Group has handled hundreds of motor vehicle dealer bonds and has partnerships with more than 30 different surety companies. Our goal is to get you the best, most competitive pricing and terms available in the marketplace. Please complete our simple application, and one of our specialists will get in touch with you as soon as possible.
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|Alabama Motor Vehicle Dealer and Designated Agent Bond
|Alabama Department of Revenue’s Motor Vehicle Division
|Get Bonded Now