State of California Department of Motor Vehicles
Personal credit check of all business owners.
1 Year – Preferred Rate $200.00 *(actual premium rate is determined by personal credit score and financial strength of business owners)
Who is Required to Secure this Bond
Under California Vehicle Code 11710 (CVC 11710) all applicants for a dealer or remanufacturer license are required to procure and file a bond with the Department of Motor Vehicles. The bond must be executed by an admitted surety, as approved to by the Attorney General. The dealer bond must be in the amount of $50,000, unless the dealer deals exclusively in motorcycles or all-terrain vehicles and wholesale dealers who sell fewer than 25 cars per year (CVC 11710.1). In this case, a $10,000 bond will be required by the State of California Department of Motor Vehicles.
Bond Requirement Specifics
The bond is required by the State of California Department of Motor Vehicles for all licensed dealers and remanufacturers to ensure that the applicant will not practice any fraud or make any fraudulent representation which will cause a monetary loss to a purchaser, seller, financing agency or governmental agency (CVC 11710). The liability of the bond must remain at full value at all times. If the bond amount is decreased or if there is an outstanding court judgment again the dealer, remanufacturer or surety, the license will be automatically suspended. In order to reinstate the license, the licensee must file an additional bond or restore the bond to the original amount, or terminate the outstanding judgment or which the dealer, remanufacturer or sureties are liable (CVC 11710).
Who is protected Under this Bond
Purchaser, sellers, financing agencies or governmental agencies in the State of California are entitled to make a claim against the dealer’s surety bond should they act in violation of the California Vehicle Code. Upon validation of the claim, the beneficiary is entitled to monetary damages which the surety bond would cover. The bond guarantees that individuals granted a license or permit to operate a business or to exercise a privilege will meet the obligations under that license or permit.
Each applicant must first complete and submit the application for a Motor Vehicle Dealer, which contains all of the pertinent information regarding the business and business owners. Upon receipt of the application, our agency will be able to provide a response as to rate and approval for the Motor Vehicle Dealer bond within one business day. Once the application is approved, the bond will be executed and released to the applicant upon receipt of payment.
What you Need to do Once you have your Bond
Once the Motor Vehicle Dealer bond has been approved and released to the applicant’s care, it must be filed with the Department of Motor Vehicles along with the licensing paperwork. The Department of Motor Vehicles will maintain the bond, which must remain effective at all times to prevent any suspension of the Motor Vehicle Dealer license
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.