Idaho Auto Dealer Bond
What is an Idaho auto dealer bond?
The Idaho Transportation Department requires vehicle and vessel dealers to be bonded as part of the state licensing process. Here are the requirements for different types of dealers:
- Retail-only motor vehicle dealers: $20,000 bond
- Wholesale-only motor vehicle dealers: $40,000 bond
- Motorcycle, ATV, UTV, and snowmobile dealers: $10,000 bond
An auto dealer bond holds dealers and dealerships accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law, the customer can file a claim against the bond for compensation.
Get Your Auto Dealer Bond in Idaho:
How much does an Idaho auto dealer surety bond cost?
Auto dealer bond premiums can vary based on applicants’ credit scores: the higher your credit score, the lower your annual premium. If you have excellent credit, expect to pay as little as 1% or less of the total bond amount. Other factors that may impact the cost of your bond include your industry experience and business and personal financials.
ZipBonds can offer $20,000 motor vehicle dealer bonds for as low as $200 annually. We offer $10,000 dealer bonds for as low as $100 and $40,000 dealer bonds for as low as $400 per year.
What is the purpose of Idaho motor vehicle dealer bonds?
The Idaho Statutes require auto dealers to post bonds and abide by their terms while operating their businesses. If they break the law by committing any violations outlined in Title 49, they could face costly bond claims (up to the total amount of their bond). Violations include practicing fraud, making fraudulent representations, or violating other provisions outlined in the Statutes.
Who needs an auto dealer bond in Idaho?
You’ll need a dealer license if you wish to sell five or more vehicles or vessels that must be titled.
Source: Idaho DMV
How to Get Your Idaho Auto Dealer License
To apply for a dealer license to operate legally in Idaho, follow this general process:
- Attend an 8-hour pre-licensing class (wholesale and used-only dealerships).
- Pass a written exam.
- Call the Dealer Team to approve your dealership name at (208) 334-8681.
- Purchase your auto dealer bond.
- Pay $300 toward the Idaho Consumer Asset Recovery (ICAR) Fund.
- Submit a letter of zoning approval or a zoning official’s signature on your dealer application.
- Complete the license application (this takes about 30 days to process).
- Submit your EIN and a copy of your seller’s permit number with your application.
- Get liability insurance.
- Set up an appointment for a dealership location inspection (after your application is approved).
- Complete form ITD-3171 for all owners and salespeople.
You can use this checklist to ensure you don’t miss any steps!
Frequently Asked Questions
How long does it take to get an Idaho motor vehicle dealer bond?
Since this bond requires underwriting, we can’t issue it to you instantly. However, the ZipBonds team always strives to deliver your bond to you within 24 hours of application.
Who regulates auto dealer bonds in Idaho?
The Idaho Transportation Department Division of Motor Vehicles regulates licensing and bonding for the motor vehicle industry.
How do I renew my surety bond?
You must renew your bond each year by a specific date for it to remain active (and for you to maintain your business license).
If you’re buying your bond from Zip, we’ll send a reminder when the expiration date is approaching. That way, you’ll have plenty of time to renew your bond and maintain your business license.
What happens if someone files a claim on my bond?
A customer can file a claim if a dealer commits fraud or unethical or unlawful business activity. If the claim is valid, the surety may cover the customer’s losses up to the total amount of the bond. The dealer will then need to pay back the surety for the damages.
Claims can be costly and damage your reputation and ability to get licensed and bonded again, so it’s best to do everything you can to avoid them.
How can I avoid claims on my auto dealer bond?
Avoid illegal activities and fraudulent business practices to prevent claims on your bond. Pay all taxes you owe. Also, ensure you comply with your licensing regulations. If a customer complains about something, address the issue immediately to avoid complaints from turning into costly claims.
How to Get Your Idaho Auto Dealer Bond
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to get bonded in a flash!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.