In Delaware, vehicle dealers must have a bond in the amount of $25,000. This bond must be in effect during the entire time of licensure, and is enforced by the State of Delaware Division of Motor Vehicles. Pricing is provided below, but you may get right into the application by clicking the button below.
Jet works to make the process stress free by delivering a quote to purchase within one business day.
As previously stated, you will receive your bond for a small portion of the bond limit. The exact cost will be based on personal factors, like years in business and credit history.
Jet prices are highly competitive, searching through several insurance companies to find the lowest price for you. Jet’s rate for a Delaware dealer bond starts as low as a monthly payment of $15. Our yearly rate also starts low at $150.
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A Delaware dealer license has a length of one year, starting January 1st or at time of license issuance and ending at midnight on December 31st. Dealer bonds in Delaware are able to be concurrent with your dealer license, or may be elected to be continuous. If choosing to correlate with the license, the bond may not expire before midnight of the expiration date of the license.
Bonding is a legal way to protect the people of Delaware from unethical dealer practices. If a dealer engages in any fraud or misrepresentation, the consumer can be reimbursed in the amount of financial loss they encountered.
Select Apply Now below to jump right into the application and get your bond at a low price.
$25,000 Motor Vehicle Dealer Bond
There are several crucial aspects of receiving your dealer license. A full list can be reviewed here, but the following information provides a brief insight into a few important steps.
First, approval is needed from the Delaware DMV to become licensed by submitting a completed application which contains the name of the applicant and information about the business they plan to open.
You must have a valid Delaware driver’s license and live in Delaware for 90 days before applying. Franchised and new vehicle dealers are not held to this requirement.
A fee is required of all dealers by the Department of Finance, Division of Revenue for a yearly dealer business license. The DMV does not charge a fee for the license.
A bond is an easy way to show financial responsibility for a vehicle dealer. When purchasing a bond, you get the full $25,000 coverage for a small portion of that price. If you conduct your business ethically and no claims are filed against you, you will not have to pay more than that small amount to receive your bond. However, if claims are filed against you, the surety company will reimburse the customer up to the full bond limit, and you will have to repay the surety for the amount paid out.
If you choose a letter of credit, you will have to supply the full $25,000 to show financial responsibility. The money will be put into an account by the Commissioner to pay out any claims. Even after your dealer license is canceled, your money will be tied up for another 2 years to ensure claims can be paid out.