Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Washington Department of Consumer and Regulatory Affairs and the Department of Motor Vehicles (DMV) as part of the licensing requirements for new and used car dealerships. The DMV sets the total bond amount at $25,000.
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for DC auto dealer bonds typically cost between 1% and 5% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a DC auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
DC auto dealer bonds provide protection for customers, creditors, and the district government. When a Wyoming motor vehicle dealer posts a surety bond, they provide a guarantee to the DMV that they will conduct business in compliance with the conditions listed in the District of Columbia Municipal Regulations, Title 18.
If the auto dealer fails to comply with the conditions, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
To obtain your auto dealer license in the District of Columbia, you must meet the DMV licensing requirements by completing the following steps:
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.