Montana Motor Vehicle Dealer Bond
What is a Montana motor vehicle dealer bond?
The Montana Department of Justice Motor Vehicle Division requires anyone applying for a motor vehicle dealer license in the state to post a Motor Vehicle Dealer Bond. The following types of dealers must post the following bonds:
- New or used dealers, brokers, wholesalers, auto auctions, and manufactured dwellings: $50,000 bond
- Motorcycle and quadricycle dealers: $15,000 bond
- Motorboat, personal watercraft, off-highway, or snowmobile dealers: $5,000 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 Montana:
How much does a Montana motor vehicle dealer bond cost?
Most 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 for a new or used auto dealer bond. Other factors that may impact the cost of your bond include your industry experience and business and personal financials.
Motorboat, personal watercraft, and snowmobile dealer bonds cost only $100 and can be issued instantly without a credit check. ZipBonds can offer $15,000 bonds for as low as $150 and $50,000 bonds for as low as $375. Apply today!
Who needs an auto dealer surety bond in Montana?
According to the Montana Code, no one can engage in “buying, selling, accepting on consignment, or acting as a broker of” any of the following unless they have been licensed and bonded.
- Motor vehicle
- Trailer
- Travel trailer
- Semitrailer
- Pole trailer
- Motorcycle
- Quadricycle
- Motorboat
- Personal watercraft
- Snowmobile
- Off-highway vehicle
- Special mobile equipment
How to Apply for Your Motor Vehicle Dealer License in Montana
Depending on your business, you may need one or more of the following license types to operate legally in Montana:
- New dealer
- Used dealer
- Broker
- Auto auction
- Wholesaler
You can check out the MVD’s Requirements for Application PDF for information regarding your license type. Here’s an overview of what you’ll need to have or provide for a new or used dealer license:
- Written application for license
- Names and addresses of manufacturers, importers, or distributors (if applicable)
- Computer, printer, and internet access
- Surety bond
- Permanent non-residential building
- Signage
- Bona fide service department (if applicable)
- Evidence of compliance with city and county requirements
- Telephone service
- General liability insurance
- Written notice of office hours
- Original license and $30 application fee
Once you’ve completed all the requirements, contact the Montana Highway Patrol, local law enforcement, or a compliance officer to complete an inspection.
Frequently Asked Questions
How long does it take to get a motor vehicle dealer bond?
Franchise and used vehicle dealers must wait for underwriting since their surety bond requires a credit check. However, the ZipBonds team always strives to deliver your bond within 24 hours of application. We can instantly issue motorboat, personal watercraft, and snowmobile dealer bonds online.
Who regulates auto dealer bonds in Montana?
The Montana Department of Justice Motor Vehicle Division 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 Montana 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.