Wisconsin Car Dealer Bonds
Different types of dealers have different bonding requirements in Wisconsin. The lowest bond limit is for motorcycle and moped dealers at $5,000. Dealers selling recreational, wholesale, or salvage vehicles need a $25,000 bond to do business, as do wholesale auction dealers. A retail dealer has the highest bond limit at $50,000. The application addresses all of the dealer types, just click Let’s Roll below to get started.
Wisconsin Auto Dealer Bond Requirements.
Bonding is a legal requirement for auto dealers in Wisconsin. It is used to ensure that a dealer will not cause fiscal damage to a customer. The bond gives protection for dealer mishandlings and will reimburse the customer if there is evidence of misconduct.
To conduct business in Wisconsin, car dealers are not the only ones that need a bond. Many dealers in the auto business must show financial responsibility, such as motorcycle, moped, retail, recreational vehicle, wholesale, wholesale auction, and salvage dealers.
How Much Will a Dealer Bond Cost?
Your rate depends largely on what dealership type you own and your personal credit score.
Using these factors and some others, Jet will seek to keep costs low for you. Our monthly payment option offers the lowest cost up front for your dealer bond. If you prefer to pay in full for year, we search for the lowest rate for that too.
|Recreational / Wholesale /
Salvage / Wholesale Auction
|Motorcycle / Moped
|Monthly | Annual||Monthly | Annual||Monthly | Annual|
|Preferred||$25 | $300||$11 | $100||$10 | $100|
|Standard||$41 | $500||$21 | $250||$10 | $100|
|Credit Repair||$83 | $1000||$47 | $500||$10 | $100|
*Not all pricing tiers are shown in this chart. The quoted rate is based on a soft credit check of the dealership owner, meaning it will NOT affect your credit. Prices shown may change at any time and are not a guarantee.
Bonds vs. Irrevocable Lines of Credit.
You have the option to choose between a bond and an irrevocable line of credit in Wisconsin. With a bond, you pay a small percentage of the required coverage amount to have that amount of protection. If you conduct business ethically, you will not need to pay more than that; if there are claims against your dealership, the surety will reimburse the customer and you will have to pay the surety back.
With an irrevocable line of credit, you will have to provide the full amount of coverage. For a motorcycle or moped dealer, this means $5,000 gets put away for claims coverage. For a car or RV dealer, that means $50,000 of your own money must be put away for claims. This money will be kept by the WisDOT until three years after your last day as a dealer.
Application for Dealer Bond.
Simply click Apply Now below to begin the quick application process. Jet will send you an email with a verified quote once prepared. Through the link in the email your bond will be available for purchase directly.
|Bond Applications for Arizona Dealers|
|$50,000 Retail Dealer Bond|
|$25,000 Bond for Recreational, Wholesale, Salvage, Wholesale Auction Dealers|
|$5,000 Motorcycle / Moped Dealer Bond|
Reasons for a Claim Arising.
Customers will get reimbursed for specific dealer actions that are covered by the bond. As a dealer, it is in your best interest to avoid claims, to conduct business lawfully and to not have to repay the surety.
A claim will prove valid if a customer has:
- Difficulty receiving a title
- Issues with warranty repairs
- Proof that a dealer withheld information about a problem with the vehicle
- Suspicion that the odometer has been tampered with or misrepresented
- Wariness about whether the dealer is licensed
- Questions about the new lemon law
What Happens When a Claim is Filed?
When there is a complaint against your dealership, the consumer must first contact you and see if there is a way to resolve the issue. If it is not resolved, they will file a form with the Wisconsin DMV, with any evidence they have. The DMV may try and negotiate a solution.
If there is a complaint that is specifically covered by the bond, the consumer may receive payment for their loss. In this case, the dealer would have to pay the surety back for the money they paid out to the consumer.