It’s no secret that many people are skeptical of auto dealers. They have been known to overprice vehicles, sell faulty vehicles without warning the buyer, and refuse to cooperate with dissatisfied customers. If you operate a car dealership, it may be tough for consumers to trust you. The fact that car dealers are so culturally untrustworthy is the reason why car dealership owners are required to obtain surety bonds for their businesses. These surety bonds are used to regulate the industry and ensure that consumers are protected from dishonest and shady dealers. In the event that a car dealer breaks the agreement of the bond and customer wants to open a claim against a car dealer, the surety bond will come into play and cover the losses for the customer.
Common types of bonds include:
As you can see, the type of bond you will need depends on the type of vehicle your dealerships sells. No matter what type of bond it is, they all work the same way. When you start your business, an agent will usually let you know if you need to purchase a surety bond.
You may have to access your surety bond if a customer makes a claim against your business. Claims are most commonly made when:
The price of an auto dealer surety bond varies by state. The price also depends on your dealership’s size, assets, worth, credit, and reputation. It’s very easy to instantly get an auto dealer surety bond quote. Protect your reputation and ensure the people you serve are satisfied customers and obtain the surety bond you need!