The Motor Vehicle Division of the North Dakota Department of Transportation requires that auto dealers carry a bond in order to operate legally. The bond amount will vary depending on the type of vehicles being sold at the dealership. Click Let’s Roll below to start the application and get a quote today.
Carrying a bond is a crucial part of the application process for a dealer. Dealers selling new and used motor vehicles, trailers, motor-powered recreational (MPR) vehicles, and mobile/manufactured homes must all have a bond. Low speed vehicle dealers are not required to be licensed or bonded.
The rates for a bond are determined through a few factors, like personal credit history and the number of years in business. The type of dealer license also plays a big role because it regulates the bond limit needed for that license. Below are preferred rates for the $25,000 North Dakota Motor Vehicle Dealer Bond.
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A bond is used to protect the public from illegal dealer practices. When a dealer does not follow the law, they may cause financial harm to the purchaser. By filing a legitimate complaint, the purchaser will get reimbursed by the bond for the loss they suffered on behalf of the dealer.
If a dealer follows the law, they will not have to pay anything above the rate they paid to receive the bond. However, illegal dealer activities that result in claims will cause the dealer to repay the surety in the amount paid out to customers.
You can get a bond quote by selecting your coverage below and submitting the application. Jet works to deliver a low price within one business day of receival of the application.
Motor Vehicle Dealer Bond
These comprehensive documents from the Department of Transportation cover the guidelines to do business as each dealer type:
All dealer types have different requirements, applications, fees, bond types, etc. Make sure you meet all the requirements necessary for the dealer type you are applying for.
Claims only arise if the dealer is acting in an unlawful way toward the customer. A few examples of reasons a claim would be filed are as follows: the odometer has been tampered with, the dealer does not include a title with the sale of the vehicle, or a check that bounces at auction.
Say a claim does get filed on your bond, it is important to act immediately by trying to resolve the issue at hand with the customer directly. If the claim is proven just and the dealer does not comply to resolve the issue, the bond company will pay the customer up to the full amount of the bond. However, the dealer is then responsible to pay back the amount paid out by the surety company, as well as any legal fees.