Ohio Motor Vehicle Dealer Bonds
Among the many type of motor vehicle dealers in Ohio, only one type needs carry a bond. Used motor vehicle dealers must be bonded to refund the Title Defect Rescission (TDR) Fund when it pays retail purchasers for unlawful dealer actions. All other types of dealers are free of the bond requirement, even new motor vehicle dealers that also have a used dealer license.
As a used motor vehicle dealer, you are required to have a bond in the amount of $25,000 for the whole time you are a licensed dealer. The bond must be filed under the exact name listed with the Secretary of State and the Ohio Bureau of Motor Vehicles.
Ohio Dealer Bond Cost.
Choosing Jet will get you the lowest rates available for your dealership. Our monthly payments are unique to the industry and will give you the lowest cost due per payment. For example, you can be fully bonded for just $13 a month. Even if you choose the yearly option, your rate could be as low as $150 annually.
Actual rates will vary based on personal factors like past financial history and credit score, among other things.
|Monthly | Annual|
|Preferred||$13 | $150|
|Standard||$27 | $325|
|Credit Repair||$59 | $625|
*Since prices are dependent on personal credit, the prices reflected are only an estimate and the chart does not show all available price tiers.
What Happens If There Is a Bond Claim?
The TDR Fund covers instances of incorrect odometer readings, salvage vehicle being sold without notifying the purchaser that it is salvaged, or if within 40 days of purchase, the dealer does not supply a title in the purchaser’s name.
To avoid a claim, you will have 7 business days to either refund the transaction or come to a suitable compromise for both parties once the purchaser reaches out to you with an issue.
If the issue is not resolved, the purchaser will apply for a refund from the TDR Fund, which will be repaid by the dealer bond. However, the dealer will still have to pay the surety in the amount that was paid into the Fund.
Remember, if a claim is filed, you are still responsible for payment. The process for reimbursement is to ensure quick payment to the purchaser but does not release you from financial responsibility for your actions.
Am I Able to Apply for a Bond Online?
Of course – Jet makes the application process quick and easy. After submitting the application (found below), the Jet team works hard to deliver a low priced quote, with both a monthly payment and annual payment option.
|Application for Auto Dealer Bond|
|$25,000 Bond for Used Car Dealers|
Documents to be Included with Used Dealer Application.
The dealer application must be fully completed before submission, but several other documents must also be included during application. To receive your license quickly, include the following when applying:
- $25,000 bond that is in effect
- Copy of certificate of registration with the Secretary of State
- Copy of Certificate of Registration of fictitious or trade name with the Secretary of State
- Photos of the dealership location as requested on application (mail or email using JPEG format)
- Criminal history of everyone on application
- Proof of completed Used Motor Vehicle Course with an approved provider
Once your application is submitted, processing will take 4-6 weeks. Incomplete or inaccurate information may delay receiving your license.
What to Do If a Claim is Filed on Your Surety Bond?
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.