Auto Dealer Bonds – North Carolina
North Carolina requires a motor vehicle dealer bond in order to be a licensed car dealer in the state. By working with several top-rated insurance carriers, we are confident we can deliver the lowest price in the market. Once the bond is purchased, a copy is sent to you to be filed with the North Carolina DMV.
How Much Does a Motor Vehicle Dealer Bond Cost?
Personal credit of the dealership owner, penalty limit, and dealer classification type are the factors that affect bond costs.
The $50,000 auto dealer bond is required for all motor vehicle dealers in the state of NC. The cost for this bond starts at $21 monthly, or $250 if paid in full up front. If you have more locations, the $25,000 bond is required for each of those. The pricing of these are less, due to the lower bond limit. Costs for the $25,000 bond start at $14 per month, or $150 annually.
|Price Tier*||$50,000 Bond||Additional $25,000 Salesroom Bond|
|Monthly | Annual||Monthly | Annual|
|Preferred||$21 | $250||$14 | $150|
|Standard||$42 | $505||$20 | $200|
|Credit Repair||$93 | $1000||$25 | $250|
*Prices shown are based on several factors including, but not limited to, personal credit, license history, years in business and active licensing and bonding. Not all available pricing tiers are shown. Rates do not constitute an offer of bonding and are subject to change at any time.
What Is the Process of Applying For a Car Dealer Bond?
Applying for a motor vehicle dealer bond can be done by simply clicking the apply now button below. The total process takes less than one minute. Once you click the button, follow the instructions to receive your quote and purchase your bond online. Any additional salesroom bond requirements will be easily addressed in our application.
|Application for North Carolina Motor Vehicle Dealers|
|$50,000 Motor Vehicle Dealer Bond|
North Carolina Requirement of the Auto Dealer Bond.
All car dealers in the state of North Carolina are required to carry the $50,000 motor vehicle dealer bond. A $25,000 bond is required for each additional showroom location. For example, if a licensed dealer has 3 locations, they would need to hold the $50,000 MVD bond and two of the additional $25,000 bonds. The $25,000 surety bond is a separate bond, but is filed in the same fashion as the $50,000 bond and is associated under the same license.
Different from general liability insurance, which is also required for dealerships in North Carolina, the car dealer bond protects the state as well as the public from the licensed auto dealer in the event of a claim.
What to Do If a Claim Is Filed on Your Bond?
If a claim is made against your bond the surety company will investigate and contact the dealer. If the surety company finds the claim to be legitimate, they will payout the claim. It is in the best interest for the dealership to be responsive to the surety company and with the claimant, if a settlement can be reached directly. When a claim is paid out to the claimant, the surety company will turn around to the dealer and demand reimbursement for the amount paid for the claim, as well as any legal costs that were incurred.
Claims arise for a variety of reasons, but all of them are due to the dealer and/or their employees acting in a dishonest or illegal manner. Examples of this would be a check that bounces at an auction or failing to deliver the proper paperwork when a vehicle is purchased. Claims can be filed by a customer that you have worked with or from the state of North Carolina.
Interesting North Carolina Auto Facts.
It is illegal to drive too slowly. Posted speed limits are meant to keep drivers safe, but driving way slower than the speed limit can also cause accidents.
It is illegal to drive your car onto a sidewalk in North Carolina, even if you are parking to get your car off a narrow roadway. Whether lawful or not, you probably shouldn’t do this.