Washington D.C. Auto Dealer Bond
What is a DC auto dealer bond?
The District of Columbia requires automobile dealers to post a $25,000 surety bond as part of DC DMV Registered Dealer licensing process.
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 Washington, DC:
How much does a DC auto dealer 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 DC auto dealer bonds for as low as $250 per year. Apply now!
Who needs an auto dealer surety bond and license in DC?
According to the Code of the District of Columbia, automobile dealers must post a $25,000 surety bond to obtain or maintain a business license. Here’s how the Code defines motor vehicle dealers:
- Anyone licensed to buy or sell motor vehicles
- Anyone licensed to purchase contracts for the retail installment sales of automobiles
How to Apply for Your Auto Dealer License in Washington, DC
Follow these instructions to become a DC DMV Registered Dealer.
First, gather the following documents.
- Clean Hands Certificate
- Basic Business License
- Copy of your occupancy permit
- Copy of your federal tax identification form
- Copy of the business owner’s driver’s license as well as each salesperson’s
- Each salesperson’s DC DLCP salesperson license
- Proof of insurance coverage
- Surety bond
Next, complete the online application.
Once complete, print your application and have it notarized.
After you submit all the required information to the DMV, they’ll notify you via email of the next steps. If you have any questions, you can email dcdmvdealerinfo@dc.gov.
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 instantly. However, the ZipBonds team always strives to deliver your bond within 24 hours of application.
Who regulates auto dealer bonds in DC?
The DC Department of Motor Vehicles regulates licensing and bonding for the automobile 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.
Your DC DMV dealership registration expires annually on October 31. Follow these four steps to renew your registration in time.
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 DC 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.