Delaware Auto Dealer Bonds
In Delaware, vehicle dealers must have a bond in the amount of $25,000. This bond must be filed with the Office of the Bank Commissioner and must be in effect during the entire time of licensure. In lieu of the bond, a letter of credit may be issued in the amount of $25,000. This shall be filed with the Bank Commissioner and will be retained two years past the end of the dealer license for claims.
Pricing is provided below, but you may get right into the application by clicking Let’s Roll above. Jet works to make the process stress free by delivering a quote within one business day.
Pricing for a Dealer Bond.
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. Our rate for a Delaware dealer bond start as low as a monthly payment of $13. Our yearly rate also starts low at $150.
|Price Tier*||Used / Franchise
|Monthly | Annual|
|Preferred||$13 | $150|
|Standard||$27 | $325|
|Credit Repair||$47 | $500|
*Bond pricing varies depending on the above stated factors. Not all available price tiers are shown, and rates are subject to change.
Important Bond Information.
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.
|Application for Dealer Bond|
|$25,000 Motor Vehicle Dealer Bond|
What Do I Need to Get a Dealer License?
There are several crucial aspects of receiving your dealer license.
First, you must get approval from the Department of Transportation, Division of Motor Vehicles to allow business transactions. Your dealer application must have accurate name and address of the applicant and any other owners, partners, or officers.
You must have a valid Delaware driver’s license and lived in Delaware for 90 days before applying. Franchised and new vehicle dealers are not held to this requirement.
Finally, a fee is required for the Department of Finance, Division of Revenue for a yearly dealer business license. The DMV does not charge a fee for the license.
Why Choose a Bond Instead of a Letter of Credit?
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 bond will reimburse the customer and you will still have to repay the surety for the amount of the claim.
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 cancelled, your money will be tied up for another 2 years to ensure claims can be paid out.