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What is a Motor Vehicle Dealer Surety Bond?
A Motor Vehicle Dealer Surety Bond is a guarantee that you will play by the rules and perform your duties as an MVD. A three party instrument, it's meant to protect both principals (the person or company for which something is done) and obligees (those who are owed something). In this case, sureties act on behalf of the principal while guarantors negotiate repayment agreements with those obligated under bond.
About the Arizona Motor Vehicle Dealer Bond
Did you know that Arizona Motor Vehicle Dealer Bonds allow people to sell vehicles at retail? The bond protects customers should the seller not deal with ethical and honest practices. If there is a claim made against your surety, it will be protected by these bonds!
Arizona Motor Vehicle Dealer Bond
The Arizona Motor Vehicle Dealer Bond is a surety bond that protects consumers from dishonest or fraudulent car dealerships. If you are looking to purchase a new or used vehicle, be sure the dealership has this bond before you sign any paperwork.
This bond will protect your investment and ensure you get what you pay for when it comes to purchasing a car in Arizona. Be safe and make sure they have this bond before signing anything!
Click here for more information on the dealer's license requirements in AZ!
Why do I need a dealer bond?
In order to keep the safety of their clients, and protect them from being taken advantage of by shady car dealerships who do not follow local or state law, an Arizona auto dealer has a surety bond. This ensures that if there is any wrongdoing on behalf of said dealership’s employees these people are reimbursed for damages done up to the full amount stipulated in this contract.
What are the terms of an Arizona auto dealer bond?
The continuous nature of an Arizona motor vehicle dealer surety bond means that it will remain in effect until the obligee or surety decides to cancel it. If a principal wishes to have their bond canceled, 60 days notice is required prior to cancellation. When filling out this form for licensing, make sure that you only mark ‘motor vehicle dealers’ and not any other licenses covered by your state's business bonds law statutes.
What is my dealer bond amount / cost?
You may need a Motor Vehicle Dealer Bond, which can range from $10k-$100k depending on the license type and jurisdiction. The bond penalty is available to you through proper claims process if your dealer violates statutes or breaks the law. Find a Arizona Managing General Agent Bond.
How do you get bonded in Arizona?
Arizona bonds are not that difficult to obtain. You'll want to do a few things first, like register your legal entity at the Arizona Corporation Commission or form a Legal Entity if you don't have one already and get an experienced surety bond agent on board as well.
How does a bonded title work in Arizona?
An Arizona Bonded Title is just like a regular title. It proves you own your vehicle and allows you to sell, insure, and register your car. The difference between an Arizona Bonded Title from a regular one lies in the surety bond attached to it—a guarantee that when someone buys this type of automobile ownership document with their money they are guaranteed restitution if anything goes wrong during the transaction process or after its purchase date has passed. Get an Arizona Home Inspector Bond.
What Can Dealers Do to Avoid Claims Against the Arizona Auto Dealer Bond?
Arizona dealers should know the most important things to avoid when selling cars in order to keep their auto dealer bond intact. These include failure remitting fees and taxes, delivering a clean title, or not following all of Arizona's regulations for car sales. Read about Arizona Contractor’s License(Commercial Specialty Contractor) Bond.
How Can Insurance Agents Prospect for AMVD Customers?
Arizona conveniently provides a public database to search active motor vehicle dealers in the state. The database is found on the DOT site and offers agents unparalleled access into this information. Here's Arizona Contractor’s License (Residential General Contractor) Bond.
