The auto industry in Georgia has several types of dealers, but only a couple of them have bonding requirements. Used car dealers are legally required to have a $35,000 bond, which is enforced by the Georgia Secretary of State, Board of Motor Vehicle Dealers.
Surety bonds in Georgia cost as low as $280 for a two-year term, but the rate is based primarily on personal credit. A soft credit check must be done to see what rates the dealer qualifies for.
|Price Tier*||Used Motor Vehicle Dealers|
|Monthly | Annual|
|Preferred||$15 | $280|
|Standard||$32 | $613|
|Credit Repair||$70 | $1050|
There are certain requirements when filling out a bond form. For used dealers, the bond must be for the exact name and address of the business. A signed Power of Attorney form must be attached to the bond.
Bonds must be in the correct limit and be in effect until the required date.
Bond Limit: $35,000
Bond Expiration: March 31st of even-numbered years
Lastly, the bond form must be signed, and the original sent to the corresponding licensing authority. A copy of the bond should be kept for your records.
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$35,000 Used Auto Dealer Bond
This is a quick list meant to help get the main requirements for your license, all requirements to be met can be found through the Georgia Professional Licensing Board.
When a complaint is brought up on a car dealer bond, the surety company will look into the claim first to verify it’s legitimacy. If the claim is indeed valid, the surety company will contact the licensed dealer to first see if the claim can be disputed with the customer before any civil litigation occurs. If the claim is not dealt with, the surety company will cover up to the full costs of the bond amount. The principal is then legally required to pay back the full amount paid by the surety, along with all legal fees incurred.
It is best to avoid claims being made against your bond, as a claim that is not dealt with properly can lead to the suspension of your license.