The Motor Vehicle Dealer Bond is required by Alabama law of any person, partnership, or corporation that buys, sells, or deals 3 or more motor vehicles in a 12 month period.
We have recently developed a new underwriting program to save you money on your bond premium. This new program does not require home ownership, financials, years in business, or collateral and was customised for those applicants with less than perfect credit. In addition to this program we are able to approve bonds at $100 annually for those applicants with strong credit. Take a couple of minutes to complete our online application to obtain a quote within hours.
We can also write your Garage Dealers Insurance, Dealers Liability, Dealers Open Lot, and Garage Keepers policies as these coverages are needed as well in most instances.
The Alabama Department of Revenue, Sales, Use & Business Tax Division Severance & License Sections requires all licensed dealers to obtain a new $10,000 surety bond for Used Motor vehicles and a $25,000 for New Motor Vehicles for their license renewal on September 30 of every year. The bond does not protect the dealer, instead it serves to protect the consumer from fraud, misrepresentation, or similar under Ala Code 40-12-398 (2009), Alabama Statutes. Failure to obtain a bond / license is punishable by fine or jail time.
If you have any questions about our application, rates, requirements please feel free to call us at 1-888-518-8011 or by email at [email protected].