North Carolina Auto Dealer Bond

An auto dealer bond in the amount of $50,000 is mandated for licensed auto dealers in North Carolina. For each additional business location beyond the first, an extra $25,000 surety bond is required. The premium typically varies between 1% and 10% of the bond's total value. Consequently, the starting premium for a North Carolina Auto Dealer Bond is $500 for the primary location and $250 for each additional location.

Several factors influence the cost of your surety bond. These include your credit score, your company's financial health, your experience in the industry, and any claims previously made on your surety bonds. To receive a precise, no-obligation quote for your bond premium, simply fill out our online form.

To obtain your North Carolina Auto Dealer Bond, begin by completing our online application form. We will quickly respond with a free, no-obligation quote.

After receiving your quote, the next steps are straightforward: sign the indemnity agreement and pay the quoted premium. Once these are completed, we will instantly send you an electronic copy of your surety bond. The original document will then be mailed to you. Once signed, send it, along with other necessary paperwork, to the following address:

N.C. Division of Motor Vehicles

Vehicle Services - Dealer Unit

3129 Mail Service Center

Raleigh, NC 27697

Before beginning the bonding process, it's crucial to know the specific surety bond required. For instance, we had a client who contacted us, looking for a $50,000 auto dealer bond for his second dealership in North Carolina. Since we had been working with him for several years and knew his business, we were pleased to inform him that he only needed a $25,000 bond for his additional dealership. He was delighted to learn that his premium would be significantly lower than he initially expected.

Anyone in North Carolina who is seeking to sell, advertise, lease, or arrange the sale of at least five motor vehicles in a 12-month consecutive period, including motor vehicle dealers, manufacturers, wholesalers, factory branches, distributors, and distributor branches, needs a North Carolina Auto Dealer Bond as part of their professional licensing requirements. This bond is crucial for maintaining ethical standards in the auto dealership industry and protecting consumer interests.

Renewing a North Carolina Auto Dealer Bond is an essential part of maintaining an active motor vehicle dealer license in the state. Typically, the bond has a one-year term and must be renewed before its expiration date to avoid any lapse in coverage. The renewal process is straightforward and can be completed online, which is convenient for busy auto dealers. We’ll send you a renewal notice well in advance of the bond's expiration date, detailing the steps and any fees required for renewal. It's important for you to respond promptly to this notice to ensure uninterrupted bond coverage and compliance with state regulations.

A North Carolina Auto Dealer Bond is a type of surety bond required by the North Carolina Department of Transportation, Division of Motor Vehicles, for individuals and businesses involved in the selling, leasing, or arranging the sale of motor vehicles. This bond is a legal requirement for obtaining a North Carolina Auto Dealer License.

The primary function of the North Carolina Auto Dealer Bond is to protect consumers. It serves as a safeguard against fraudulent or unethical practices by auto dealers. If a dealer engages in misconduct, such as fraudulent representation, failure to pay required taxes and fees, or violation of other licensing laws, affected parties can file a claim against the bond.