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North Carolina Auto Dealer Bond
The North Carolina Department of Transportation Division of Motor Vehicles requires a $50,000 surety bond to be filed for a motor vehicle dealer to be licensed as a franchise, used, wholesale, distributor, factory branch, or manufacturer.
Click the quote button and get your bond in minutes!
A $25,000 bond is required for each additional location.
Jet provides auto dealers direct access to surety underwriters and claims handlers without middlemen agents or brokers, simplifying the bond process from purchase to filing.
We also study the car business to sniff out the shady shops that cause all of the claims, allowing us to lower bond prices for North Carolina dealers.
Other bond providers just run a generic credit check, which opens the floodgates causing quality dealers to unfairly subsidize the deadbeats with an inflated premium.
We think honest dealers with solid business practices should get to save on their bond.
What Is the Price for a North Carolina Auto Dealer Bond?
The cost for a $50,000 Dealer License Bond starts at $220 for one year or $22 per month. Bonds for additional locations start at $110 a year or $11 monthly each.
Rates are based on the personal credit of the dealer (which is a soft check that won't affect your credit score), the dealer's experience and business practices. The chart shows preferred pricing.
| Bond Term | Cost |
|---|---|
| Monthly | $22 |
| 1 Year | $220 |
| 2 Years | $385 |
| 3 Years | $550 |
Other companies use underwriting to assess many arbitrary factors, extending the time it takes to provide a rate. Jet streamlines the process to have an immediate rate available for purchase.
Jet is the only company to offer monthly payments on the North Carolina Auto Dealer Bond. Gone are the days of 30-40% down payments and 20-30% APRs! The monthly payments require zero down payment, zero interest, and zero fees. You can cancel the bond at any time.
Can Jet File the North Carolina Motor Vehicle Dealer Bond for Me?
Yes! Jet will send your surety bond directly to the DMV for filing. When you have purchased the bond, the bond form will be completed with our surety seal and necessary signatures. The original bond will be mailed to the DMV.
For new dealership applicants, you may need the original bond form to submit along with the initial licensing paperwork. Jet can send it to you upon request within the online application process. When you have all documentation ready, mail all paperwork to:
North Carolina Department of Transportation
Division of Motor Vehicles
3129 Mail Service Center
Raleigh, NC 27697
Can I Cancel My Auto Dealer Bond and Get a Refund?
Yes; unlike other surety companies that withhold minimum earned premiums and commission fees, Jet will provide you a full refund on any unearned premium. Any time that the bond has not been “used” will be reflected in your refund.
If you are enrolled in the monthly payment plan, you’ll simply need to contact our team to cancel your bond and we will stop the automatic payment withdrawals.
Jet will send out a cancellation notice to the Division of Motor Vehicles immediately following your request to cancel. However, since the DMV keeps the bond in effect for an additional 30 days, that time must be accounted for in the return premium as the bond remains active.
What Is the Purpose of the Auto Dealer Bond?
Surety bonds for vehicle dealers ensure the licensee conducts business according to the Motor Vehicle Dealers and Manufacturers Licensing Law (General Statutes Chapter 20, Article 12) and the Vehicle Mileage Act (Article 15). The North Carolina Division of Motor Vehicles enforces these statutes upon auto dealers as part of their mission to connect people safely with motor vehicle products.
This bond is a guarantee provided by Jet covering any financial harm that falls upon the public due to the fraudulent or negligent actions of a car dealer. Think of Jet as a person vouching to North Carolina that you, the dealer, are trustworthy to sell vehicles in the state. The state expects you to abide by regulations and address customer complaints, and so does Jet who is guaranteeing your business with a surety bond.
How Does a Motor Vehicle Dealer Avoid Bond Claims?
The best way to avoid claims is to follow licensing regulations and conduct business in an honorable manner. If there is misconduct, a person that has purchased a motor vehicle and suffered damages may file a complaint with the DMV. This complaint may be resolved between the parties before it escalates into a bond claim.
Under North Carolina General Statutes 20-294, certain acts by a motor vehicle dealer may be cause for disciplinary action from the DMV including revocation, suspension, or denial of a license. Examples of these acts include:
- Willful disobedience of the Motor Vehicle Dealers and Manufacturers Licensing Law, the Vehicle Mileage Act, or General Statutes 20-52.1, 20-75, 20-79.1, 20-79.2, 20-108, 20-109, 20-109.3
- Purposefully defrauding a retail buyer that results in financial damage
- Retaking motor vehicles under retail installment contracts and reselling them through fraudulent methods
- Willful deception and misrepresentation during advertising
- Knowingly label a used motor vehicle as a new motor vehicle
- Purposefully issuing a false title or withholding a title following the sale of a motor vehicle
- Failing to pay the DMV for any fees or penalties
- Changing the number of miles indicated on the odometer of a motor vehicle
These are just some of the ways a dealer can get in trouble. A motor vehicle dealer guilty of financial damage to a person may face a claim against the Auto Dealer Bond for reimbursement to that person.
What Happens if a Bond Claim Is Filed?
In the event that a claim is filed against your Dealer License Bond, Jet will protect you from false accusations. At the outset of the investigation, Jet will request any evidence from the claimant and any applicable records from you.
The DMV must be notified within 10 days of any action starting the bond claim process. If the investigation concludes and the claim is valid, Jet will reimburse the customer in the amount of the claim, up to the bonding limit. However, since bonds are like an extension of credit, the dealer is ultimately held responsible for the amount that was paid out and must restore the bond to its full amount by reimbursing Jet for the claim payout.
How to Apply for a North Carolina Dealer Surety Bond
You can get your Auto Dealer Bond in just a few minutes. Once you have entered basic information, Jet will offer an approved rate that is ready for purchase.
An electronic copy of the bond and receipt is available immediately after purchase for your own records.
How to Renew the Auto Dealer Bond With Jet
If you enroll in the monthly payment program, you will not have to worry about renewing your bond! Each payment that is received will keep your bond on file.
For bonds that are purchased on annual terms, a renewal payment will need to be submitted to continue coverage. When the term is drawing to a close, Jet will send out a renewal notice well in advance of the bond expiration date. The renewal can be processed online instantly, or you can mail in payment. If any payment terms need to be updated, changes can be made during this time.
Does the Auto Dealer Bond Expire?
Not with the NCDMV. The Auto Dealer Bond remains active until cancellation has been requested by Jet. The bond will only expire on a specific date with Jet if an annual renewal or monthly payment is not made.
Does a Motor Vehicle Dealer Need Any Other Coverage?
Auto dealers must also hold a comprehensive liability insurance company policy for dealer plate coverage. A Garage Coverage Form-Automobile Dealer Supplementary Schedule policy number or binder number from an insurance company can also be used for dealer plate coverage.
North Carolina Motor Vehicle Dealer Bond Form Example
