Ohio Auto Dealer Bond

Ohio Auto Dealer Bond

Ohio used car dealers must file a $25,000 Motor Vehicle Title Defect Bond (also known as an Auto Dealer Bond) to the Ohio Attorney General in order to have a license. Jet Insurance Company offers the bond as a guarantee to the State of Ohio that its citizens are financially protected from the dealer regarding title transfer failure and odometer tampering. 

QUOTE

Jet is your no-nonsense surety bond provider. We are a direct insurance company providing you the Ohio Motor Vehicle Dealer Bond without using pesky middlemen who benefit themselves by adding fees and commissions.

What Is the Lowest Price for the Ohio Auto Dealer License Bond? 

At Jet, rates for the $25,000 Ohio Auto Dealer Bond start at $150 annually or you can choose our convenient $15 monthly option. Our prices for the bond are based on the dealer’s personal credit and the number of years in business. Refer to the chart below for additional multi-year bond terms at preferred tier prices.

Bond TermCost
Monthly$15
1 Year$150
2 Years$263
3 Years$375
Ohio Dealer Bond Prices

The Jet team believes in providing affordable prices for everyone, which is why we offer the Auto Dealer Bond with monthly, annual, and multi-year payment options. 

How Do I Get the Lowest Rate for the Ohio Used Dealer Bond?

At Jet, we are looking at the credit score combined with the years of experience to determine our rates. As a used dealer’s credit score gets better, the rates can lower to be just fractions of higher tiered rates. Years in business can take the rate even lower. Typically, the longer you have the bond with Jet the lower your rate will be.

Why Is the Auto Dealer Bond Required by the State of Ohio?

The Auto Dealer Bond acts as an extra layer of financial protection for the Bureau of Motor Vehicles (BMV) and the Attorney General’s mission to safeguard Ohio’s consumers.

As a prerequisite to becoming a licensed used motor vehicle dealer, the BMV asks the applicant to provide the $25,000 Auto Dealer Bond as a legal assurance that they will abide by the rules and regulations of their license. 

As for the Attorney General, their office oversees the Title Defect Recision Fund? which provides restitution to used car purchasers if they face financial damages due to a title violation. If the dealer cannot pay back the Attorney General for violation payments made on their behalf, the surety bond will be used to reimburse the Fund so that it may continue to relieve the Ohio public from financial losses.

Jet will provide financial compensation to a claimant should the used motor vehicle dealer not be accountable for their actions regarding salvage and buyback disclosure, title transfers, or odometer readings.

As there are various regulatory parties involved in the licensing of used motor vehicle dealers and the regulation of the Auto Dealer Bond, the Jet team has broken all this information down in the chart below for easy understanding.

Regulatory PartyConnection to Auto Dealer Bond
Ohio Legislature- Wrote the code that mandates the surety bond
- Wrote regulations for those in the motor vehicle dealer industry
Ohio Bureau of Motor Vehicles- Manages and regulates motor vehicle dealers
- Ensures a surety bond is in place for all dealers
- Works with the Motor Vehicle Dealer Board and Attorney General in dealer investigations
Ohio Motor Vehicle Dealer Board- Conducts hearings and appeals on the issuance, suspension, or revocation of motor vehicle dealer licenses
- Implements penalties
Ohio Attorney General- Works with BMV and the Board to review and investigate title defect complaints
- Manages the Title Defect Recision Fund and provides restitution to claimants
- May file a claim on the bond to cover losses of Fund
Ohio Used Motor Vehicle Dealer Regulatory Parties

How to Apply for the Ohio Auto Dealer Bond With Jet 

Our online application makes it easy to apply for and purchase your bond; we only ask for necessary information and you will receive an approved rate as soon as you’re done. Jet does require submission of the owner’s social security number for a soft credit check — don’t worry, a soft check won’t make a difference to their credit score. 

Once you complete the application, you will be able to purchase your bond online. Simply select the term you would like to proceed with and provide payment information. You will receive an emailed copy of your bond and a receipt. 

How Does the Ohio Auto Dealer Bond Get Filed?

Jet will file the bond for you to the Attorney General. You will need a witness present when signing for the bond online. The online signature is secure and takes seconds.

If you are applying as a new licensee, the original bond will need to be submitted with the initial application. In this case, Jet will send you the original bond. Be sure to sign the form and have a witness sign it as well. The witness can be any person of legal age. 

The original bond is sent to the following address:

Ohio Attorney General- Consumer Protection Section
ATTN: TDRF Unit Surety Bond
30 E Broad St, 14th Floor
Columbus, OH 43215

Can I Get A Refund After Cancelling My Dealer Bond?

Yes, you are able to cancel your Auto Dealer Bond with Jet and get a refund. Please send us a written request, either by mail or email ([email protected]). We will begin the cancellation process starting by notifying the Attorney General and the Registrar of Motor Vehicles of cancellation. The bond will stay active for 30 days from the date of cancellation notice. For monthly subscribers, payments will continue during that time. 

Once the cancellation is complete, Jet will review the remainder of the time left on the bond to see if a refund is available; any time left unused will result in a prorated refund. Monthly payment plans are not eligible for refunds. 

How to Renew the Ohio Auto Dealer Bond

The Auto Dealer Bond form does contain a custom effective and expiration date that will be based on your chosen bond term with Jet, therefore renewal will be needed once the expiration date on the bond form is met. 

However, if you choose our monthly payment option, there is no need for renewal! Your payments will continue to come out of your preferred account until the official cancellation of the bond is requested. Pay no attention to the bond expiration as Jet will continue to update the Ohio Attorney General.

If you choose to purchase on an annual or multi-year bond term, Jet will send you a renewal invoice via email and mail far in advance of your bond’s expiration date. No additional paperwork or extra fees will be required of you, simply fulfill premium payment and the Jet team will take care of the rest!

How Do Used Auto Dealers Avoid Disciplinary Actions in Ohio?

There is no shortage of legislation surrounding motor vehicle dealers. For used auto dealers, the rules and regulations to be familiar with can be found in Chapter 4505 and Chapter 4517 of the Ohio Revised Code and Chapter 4501 of the Ohio Administrative Code.

When it comes to the surety bond, there are four areas of concern:

What seems commonplace after selling the car—transferring the title to the new owner or lienholder—creates our first area of concern. A 40-day window exists to pull this feat off, so no excuses if it does not happen. A nefarious dealer may have never obtained the title, either obtaining the vehicle through illegitimate means or through a floor plan (thus not owning the car outright). Either way, the actual title must be obtained and transferred properly. Failure to do so will eventually be discovered and punishment handed out.

There exists a 60-day window after the transfer of the vehicle to the customer for them or their representative (lender) to make a request to rescind the purchase if they did not receive the title. A refund must be made to the customer and/or a refund of the appropriate amount to the lender. Or, you could just deliver a clean title if a clerical error was made (if the consumer will allow it).

Used dealers can get in trouble for delivering a title with outstanding liens, forging the title document, tampering with the odometer, or not disclosing a vehicle was a former salvage or buyback (factory recall) to the buyer. Act dishonestly and eventually, you will get walloped. In these cases, the purchaser has 180 days to bring a complaint against the dealer. Once again, the used dealer must make a proper refund with the return of the vehicle to the dealer.

Used dealers may receive a complaint directly from the consumer or the Ohio Attorney General. Be advised, you will only hear from the Attorney General if a complaint is deemed viable based on their initial review of the complaint. 

The Attorney General will investigate the complaint regarding the alleged violations. You should be fully cooperative and you can bet the bank that the investigator will keep looking to find more against you than the original complaint.

Should there be grounds for a citation, the Attorney General will provide an option to have a hearing held with the Motor Vehicle Dealers Board. This is a good chance for used dealers to dispute investigation findings.

With the determination a violation was committed, the licensee can receive the following punishments including, but not limited to: 

Dealers must abide by the ruling and the consequences handed down if there is hope to continue as a used dealer. Any fiscal damages sustained by the public will need to be rectified by the dealer as ordered. Failure to do so will result in a payment to the affected party from the Title Defect Recision Fund. This does not remove the necessity of the dealer to reimburse the Fund for payments made.

What Is the Title Defect Recision Fund?

The Title Defect Recision Fund’s sole purpose is to provide a means of reimbursement to purchasers of retail motor vehicles who have sustained financial damage as a result of an auto dealer’s failure to supply a valid certificate of title. The Fund is only tapped into when a dealer refuses to refund the retail purchaser and the purchaser then files a complaint with the Attorney General.

A consumer would be entitled to compensation from the Fund if the dealer carries out one or more of the following actions and does not correct the issue:

It is the used vehicle dealer’s responsibility to restore the amount that was paid out by the Title Defect Recision Fund or risk license infractions and a bond claim.

What Happens if I Get an Auto Dealer Bond Claim?

Generally, the claim only reaches the surety company (Jet) once the Attorney General and Bureau of Motor Vehicles have given you multiple opportunities to rectify the situation and you are unable or unwilling to replenish the Title Defect Recision Fund. Any paperwork and details you can provide to Jet will be helpful in Jet’s investigation process, such as title documents and bill of sale for the vehicle in question. Our goal is to weed out false claims and government malfeasance.

Legitimate claims must be paid out by Jet in the amount of the claim, not to exceed the full bond limit of $25,000. Unlike typical insurance that protects you, a surety bond protects people from you. As the perpetrator, in this case, it is still your guilty acts that caused damage and you remain responsible to restore the bond to its full value by reimbursing Jet. Failure to do so will cause license issues, such as suspension or revocation, and difficulties obtaining the Ohio Auto Dealer Bond in the future.  

Are There Other Bonds That an Ohio Motor Vehicle Dealer Needs? 

Remanufactured vehicle dealers in Ohio must hold a $100,000 license bond, separate from the Used Auto Dealer Bond.

Ohio Auto Dealer Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: