Wisconsin Auto Dealer Bond
What is a Wisconsin auto dealer bond?
The Wisconsin Department of Transportation requires motor vehicle dealers in the state to post the following surety bonds:
- Retail dealers: $50,000 bond
- Salvage dealers: $25,000 bond
- RV dealers: $25,000 bond
- Wholesale dealers: $25,000 bond
- Motor vehicle auction dealers: $25,000 bond
- Moped 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 Wisconsin:
What does a Wisconsin 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 $50,000 Wisconsin auto dealer bonds for as low as $375 per year. Apply today!
Who needs an auto dealer surety bond and license in Wisconsin?
You’ll need a retail dealer license and surety bond if you plan to:
- Sell more than five vehicles per year
- Acquire at least one vehicle to sell it
- Lease or sell vehicles to the general public
You’ll need a wholesale dealer license (and surety bond) if you sell vehicles only to other licensed dealers. See Chapter 218 of the Wisconsin Statutes for more information.
How to Get Your Wisconsin Auto Dealer License
Follow these application instructions to get your auto dealer license in Wisconsin:
- Complete the motor vehicle dealer license application (submit two copies).
- Fill out the entity/owner statement for every individual with ownership interest.
- Get your auto dealer bond and submit the original form with your application.
- Complete the salesperson/representative license application.
- Sign the motor vehicle service agreement.
- Fill out the buyer’s license application (optional).
- Send a copy of a valid lease for your business real estate during your licensing period (unless you own it).
- Submit two fee checks.
You’ll find all the necessary forms and complete instructions for filling them out on the WisDOT website. Send your complete application by mail to the following address:
- Wisconsin Dept. of Transportation
Dealer and Agent Section
PO Box 7909
Madison, WI 53707-7909
The Department will review your application and conduct background checks as needed. You’ll receive your license and dealer plates as soon as your application is approved.
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 Wisconsin?
The Wisconsin Department of Transportation (DOT) regulates licensing and bonding for the motor vehicle industry and is the obligee.
How do I renew my surety bond?
Once you’ve purchased your motor vehicle dealer bond, remember to renew it every two years before its expiration date. If you’re buying your bond from us, 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 Wisconsin 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.