Georgia Auto Dealer Bond
What is a Georgia auto dealer bond?
Officially called a “Georgia Used Motor Vehicle Dealer Bond,” this $35,000 license and permit bond guarantees the State of Georgia that used car dealers will follow state laws and regulations regarding the industry.
If a dealer acts illegally or unethically and costs a customer or the state money, they’re responsible for covering the damages. The surety may pay to settle the claim upfront, but the auto dealer must repay them in full.
Georgia defines a “used motor vehicle dealer” as any person who (for a commission or with intent to make a profit) sells, exchanges, rents with the option to purchase, offers, or attempts to negotiate a sale or exchange of an interest in used motor vehicles.
Get Your Used Auto Dealer Bond:
Who needs a Georgia auto dealer bond?
If you wish to become a used auto dealer in Georgia, the State Board for the Registration of Used Motor Vehicle Dealers requires that you obtain a license and bond. Your surety bond ensures the state that you’ll abide by all rules and regulations governing your industry. You will need a separate bond for each licensed business location.
How much does an auto dealer bond in Georgia cost?
The bond requirement in Georgia is $35,000. Your premium rate will be based on your credit score. If you have excellent credit, you could obtain this bond for as low as $175 every two years. Remember to renew your bond every even-numbered year by September 30 (previously March 31).
- Note that bonds for currently licensed dealers will remain in effect until the previous expiration date: March 31, 2024.
- New dealers will have a new expiration date of September 30, 2024.
How to Get Your Auto Dealer License in Georgia
To apply for your Used Motor Vehicle Dealer License in Georgia, follow these steps:
- Complete the application and get it signed and notarized. Return it to the Georgia Secretary of State.
- Pay the application fee ($170 for a new license, $150 for renewal).
- Follow specific instructions for your license and application type.
- Submit all required documentation and fees.
- Be fingerprinted (pre-register here).
You must renew your license by September 30 of even-numbered years (as of May 26, 2022). The renewal period is from July 1 to September 30.
Frequently Asked Questions
How do I file my surety bond?
Once you apply with us and your application is approved, you can print your bond and send it, along with your license application and other required documents, to the Licensing Boards Division:
- State Board of Registration of Used Motor Vehicle Dealers & Used Motor Vehicle Parts Dealers
- Used Motor Vehicle Dealers Division
- 237 Coliseum Drive
- Macon, Georgia 31217
How can I avoid a claim on my 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 (outlined in Georgia Code 43-47-8). If a client complains about something, address the issue immediately to avoid complaints from turning into costly claims.
Can I get a used auto dealer bond with bad credit?
You may still be able to get bonded by paying a higher premium. Expect to pay upwards of 5-10% if you have a low credit score.
How to Get a Used Car Dealer Bond in Your State
ZipBonds offers the fastest and most secure option for getting new and used auto dealer bonds. Our all-digital platform is intuitive and straightforward. Apply online or call us at 888-435-4191 to speak with an agent directly. Many of our bonds can be processed and issued immediately online.
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.