New Hampshire Motor Vehicle Dealer Bond
What is a New Hampshire motor vehicle dealer bond?
The New Hampshire Department of Safety Division of Motor Vehicles requires anyone applying for a motor vehicle dealer license to post a $25,000 Vehicle Dealer’s Bond. This requirement applies to retail dealers, automotive recycling dealers, auto wholesale dealers, and utility dealers in the state.
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 New Hampshire:
How much does a New Hampshire 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 New Hampshire auto dealer bonds for as low as $125. Apply today!
Who needs a vehicle dealer bond in New Hampshire?
The New Hampshire Revised Statutes outlines the requirements for auto dealers in the state. Before an individual can become a licensed dealer in the state, they must post a $25,000 surety bond. This applies to all retail vehicle dealers, all auto wholesale dealers, all automotive recycling dealers, and some utility dealers.
- You’re considered a Retail Vehicle Dealer if you engage in the motor vehicle business (including motorcycle dealers) and sell five or more vehicles annually.
- An Auto Wholesale Dealer has an established place of business in the state and purchases vehicles to sell to other licensed dealers.
- Auto Recycling Dealers include anyone with an established place of business in the state who buys secondhand vehicles to remodel, take apart, rebuild, or sell the auto parts.
- A Utility Dealer includes anyone with an established place of business in the state who sells or exchanges travel or camp trailers, semi-trailers, boat trailers, construction equipment, farm equipment, modular buildings and manufactured housing, or tractors.
How to Apply for Your Auto Dealer License in New Hampshire
To apply for your dealer license or registration, follow this general process. First, fill out the correct dealer application form.
- Application for Automotive Recycling Dealer Registration
- Application for Retail Dealer License and Registration
- Application for Utility Dealer Registration
- Application for Auto Wholesale Dealer
Then follow these steps:
- Pay a fee.
- File your $25,000 surety bond.
- Get approval from state and local authorities.
- Establish your place of business.
- Complete an original service agreement.
- Pass a criminal background check.
- Fulfill all location and usage requirements.
- Complete the title/dealer class (if approved).
You’ll find specific instructions for each dealer type below:
Frequently Asked Questions
How long does it take to get a 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 New Hampshire?
The New Hampshire Department of Safety Division of Motor Vehicles regulates licensing and bonding for new auto dealers and is the obligee on the bond form.
How do I renew my surety bond?
Your bond and license must be renewed each year by a specific date to remain active. 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 New Hampshire 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.