Used Car Dealer Bonds are a Vital Part of Running a Dealership
If you think used car dealer bonds are going to be vastly different from the other bonds a company issues, you’re going to be disappointed. Although they’re geared specifically towards the sale and purchase of used cars, all bonds are quite similar. The reason people are comfortable handling the sale of cars is because they know the company on the surety will cover the transaction if the parties involved don’t honor their agreement.
The used car dealer bond does more than simply promise that one way or another, the cost of the vehicle will be covered. In order to get the bond, the used car dealers need to promise that in addition to learning the various laws the state has set up regarding the sale of used car, the dealer also agrees to never use any sort of fraudulent acts during the process of selling a car. Getting caught breaking laws or resorting to fraud will result in the dealer losing their surety bond, making it very difficult for them to sell vehicles. Other penalties for not adhering to the bond include being forced to handle surety fees, and possibly losing their insurance.
Anyone who’s interested in running an auto dealership will first have to get all of their affairs in order, most importantly getting their business license before they can approach a company that handles used car dealer bonds Not only do you need to have your license in order to be approved by the surety company, but it’s also very important to make sure the name on the application matches the name on the license perfectly. Making mistakes will slow down the approval process.
You should anticipate it taking a minimum of a week before the application for the used car dealer bond to be approved, though this can sometimes take a bit longer. Just because the application has been passed, you shouldn’t assume you no longer have to think about it. That’s not the case at all. Before the bonding process can be considered complete. At this point you’re going to have to pay for the bond, this cost can vary from one state to another. You will also have to make sure you have all the paperwork needed for the state to approve the bond. Once all of this has been completed, you still need to have everything properly notarized.
Owners of auto dealerships will find that they have a very difficult time attracting customers if they haven’t taken the time to apply for a used car dealer bond New York. Even though many customers aren’t clear on what the surety bond proves, but they do know that its existence means you’re an honest business person who won’t resort to sneaky, underhanded techniques while making a sale.
Contact SuretyEz when you decide that you’re ready to get a used car dealer bond for your new dealership. They make the process easy.