California Surety Bond for Business Partner Automation
What is a business partner automation bond?
A Business Partner Automation bond is a surety bond that the California Department of Motor Vehicles (DMV) requires of applicants of first-line business partner and service provider permits. The Business Partner Automation (BPA) program lets auto dealers process transactions at their places of business (rather than customers having to visit the DMV).
- First-line business partner: A partner who receives data directly from the California DMV and uses it for registration and titling activities for their own business purposes
- First-line service provider: A partner who receives information from the California DMV and then transmits it to a second-line business partner for registration processing
- Second-line business partner: A partner who receives information from a first-line service provider
A BPA bond helps safeguard vehicle-related information that is processed or transmitted by a first-line participant.
Get Your BPA Bond:
Quick Takeaways
- The Business Partner Automation program lets auto dealers process transactions at their places of business (rather than customers having to visit the DMV).
- Whether you want to sell or lease new vehicles in the state of California, you will need to obtain a surety bond and comply with the licensing laws in your state.
- First-line business partners must post a $650,000 bond.
- First-line service providers must post a $1 million bond.
How does a business partner automation bond work?
This California surety bond is a legal contract involving three different parties:
- Obligee: The State of California requires the bond
- Principal: The permit applicant (auto dealer) who must obtain the bond to become a first-line partner
- Surety: The company that provides the bond
If a first-line partner (the principal) fails to perform activities according to state laws, and someone experiences financial loss because of it, a claim may be filed against the bond. If the principal doesn’t settle the claim, the surety company may investigate to determine if the claim is legitimate.
READ MORE
If the claim is valid and the principal has committed a violation covered by the bond, the surety will compensate the claimant up to the total bond amount. The principal must then repay the surety for the amount they covered.
Who needs this California surety bond?
If you’re an auto dealer in California, you will need a BPA bond if you want to file registration or title information electronically via the DMV Business Partner Automation program.
More specifically, you’ll need this bond to sell or lease new vehicles. If you’re a used car dealer, you may not be required to participate in this program. However, offering your customers BPA registration services in-house may help enhance the buying experience (and put more money in your pocket).
What does a business partner automation bond cost?
The cost of your surety bond premium may depend on your credit score and financial situation. If you have an excellent credit score, you could pay as little as 1% of the total bond amount. First-line business partners must post a $650,000 bond. And first-line service providers must post a $1 million bond.
Get a Business Partner Automation Bond
ZipBonds is the fastest and most secure way to get the bond you need. We take out the pain of long, complicated applications. In fact, most of our bonds are approved and processed immediately. Find your BPA bond today.
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.