What is a Georgia used motor vehicle dealer bond?
The state of Georgia requires any individual and/or business that operates as a used motor vehicle dealer to obtain a surety bond as a part of the licensing process. The statewide licensing requirement applies to anyone who sells used motor vehicles for profit, regardless of the number of cars you sell per year.
The used auto dealer bond is a guarantee that the licensed dealer will follow the rules set out by the Georgia State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers. The bond helps to protect the business’ customers, the public, and the government. If the dealer fails to follow the licensing rules or commits fraudulent/illegal acts, those injured can make a claim. The surety company will pay out damages up to the bond amount for all valid claims. The dealer is ultimately responsible for reimbursing the surety for all valid claim payouts.
Who is the obligee for used car dealer bonds in Georgia?
The obligee is the entity that requires you to get a Georgia used car dealer bond. You can contact them here:
GEORGIA STATE BOARD of REGISTRATION of USED MOTOR
VEHICLE DEALERS AND USED
MOTOR VEHICLE PARTS DEALERS
237 Coliseum Drive • Macon, GA 31217
Phone: (844) 753-7825
What are the bond specifications?
The used auto dealer bond for Georgia has a required bond amount of $35,000. This specific bond also has a set expiration date. Regardless of the date you purchase it, this bond expires March 31st, every even year (2022, 2024, etc.). Furthermore, the name on your bond must match the exact name of the business that is or will be licensed. If you have several business locations, you will need a bond for each licensed location you have.
How much does a used motor vehicle dealer bond in Georgia cost?
The cost of a used auto dealer bond is primarily based on the credit of the individual applying. The surety will analyze your credit and assign you a premium rate, anywhere from 0.81% to 6% and higher. Your total premium—what you pay—will be your premium rate multiplied by the required bond amount of $35,000. The entire premium is due up-front as a single payment before your bond is issued.
If you have poor credit and are worried about getting a quote, fret not. Though your premium may be somewhat higher, EZ Surety Bonds works with several surety companies to find you the best quote. If you have exceptional credit, congrats. We’ve seen quotes for used car dealer bonds as low as $285.
How to get a Georgia used car dealer bond
We make applying for surety bonds quick and easy. Simply fill out the short application form on our website to start the bonding process. It will only take you a few minutes. You’ll typically get quoted and be able to purchase your bond within 24 hours of applying. If you have any questions along the way, you can reach us at email@example.com or call us at 1-866-546-4605.
Why do you need a used auto dealer bond in Georgia?
This bond is required by the Georgia State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers as part of the licensing process. Any person who wants to sell used motor vehicles for profit in the state of Georgia must get a license and a surety bond. If you have more questions about the licensing process, read how to get an auto dealer license in GA.
Frequently asked questions
1. Submit a license application form
2. Pass the pre-license business location inspection
3. Post a $35,000 surety bond
4. Obtain a certificate of insurance
5. Pass a fingerprint background check
6. Obtain a sales tax number from the State Department of Revenue
7. Complete any established place of business requirements
8. Attend a pre-licensing seminar
9. Pay the $170 application fee (plus another $170 for each additional lot)
The Georgia auto dealer bond has a required bond amount of $35,000. This is not what you pay for the bond. The cost of an auto dealer bond in Georgia can range from $285 to upwards of $2,100 and higher depending on your credit.
The Georgia State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers regulates used car dealerships in Georgia. It is made up of 14 members and has two divisions: the Used Motor Vehicle Division and the Used Motor Vehicle Parts Division.