Oklahoma Auto Dealer License Bond
What is an Oklahoma auto dealer license bond?
The Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission requires those working in the motor vehicle dealer industry to post the following surety bonds:
- Used motor vehicle auctions: $50,000 bond
- Used auto dealers: $25,000 bond
- Wholesale motor vehicle dealers: $25,000 bond
- Used motor vehicle rebuilders: $15,000 bond
Requirements are outlined in the Oklahoma Statutes 47-583. 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 Oklahoma:
How much does an Oklahoma auto dealer license 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 $25,000 Oklahoma auto dealer license bonds for as low as $125. Apply today!
How to Apply for Your Oklahoma Auto Dealer License
To apply for a used auto dealer’s license in Oklahoma, follow these steps:
- Complete the application form.
- Pay a fee ($600 for used auto dealers and used auto dealer auctions, $200 for franchised used auto dealers and secondary locations).
- Complete a personal history questionnaire.
- Submit an OSBI Report.
- Submit financial statements.
- Get liability insurance.
- Get a surety bond.
- Show proof of a usable phone.
- Get a letter or permit from the city or county.
- Take photos of your sales office and signage.
- Submit a copy of your certificate of incorporation or LLC or a certificate of good standing.
- Schedule an inspection with the Commission inspector.
- Register all salespeople.
See the Oklahoma Used Motor Vehicle Industry Forms page for more information.
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 Oklahoma?
The Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission regulates licensing and bonding for the motor vehicle industry and is the obligee.
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). In Oklahoma, the expiration date is December 31 of odd-numbered years.
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 Oklahoma Auto Dealer License 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.