The Wisconsin Department of Transportation requires the Wisconsin Motor Vehicle Dealer Bond as a licensing requirement to operate as a motor vehicle dealer within the state.
This surety bond involves three entities, namely the principal (in this case, the motor vehicle dealer), the obligee (the Wisconsin Department of Transportation), and the surety company. The surety company, being a legally authorized entity, assures financial security that the principal will perform their obligations while adhering to all state and licensing laws.
If a motor vehicle dealer breaks the state’s licensing law, the injured party may file a complaint against the principal’s bond. After an investigation into the validity of the claim, the surety company compensates the affected party up to the bond amount. Fraudulent or illegal actions that may result in a claim can include, for instance, odometer tampering, late or incomplete payments, illegal selling practices, license renewal and registration violations, or failure to follow state-approved license plate regulations.
It should be noted that the principal is responsible for reimbursing the surety company for any claims and related costs, unlike a typical insurance policy. Although the bond is necessary for licensing purposes in the state, it only safeguards the State of Wisconsin and the public, not the motor vehicle dealer.
The State of Wisconsin requires all motor vehicle dealers to obtain the Wisconsin Motor Vehicle Dealer Bond to qualify for a motor vehicle dealer license.
If an individual intends to sell a vehicle, the state requires them to obtain an official dealer license, even if it's just one vehicle. Wisconsin statutes specify that a motor vehicle dealer refers to an individual or company involved in the trade or sale of motor vehicles, either directly or indirectly.
The type of WI dealer license you need may vary. For instance, those selling or leasing vehicles to the public must hold a Wisconsin retail dealer license. Those who only sell vehicles to other licensed dealers must have a distinct wholesale dealer license.
The Wisconsin Motor Vehicle Dealer Bond has a bond amount of $50,000. Fortunately, you are only required to pay a small percentage of the bond amount, called a premium. This premium rate is determined by various factors, such as your credit standing, experience, and track record. It is important to note that this soft credit check will not affect your credit score.
An applicant with excellent credit may see quotes starting as low as 1% of the bond amount. Even if you have nonstandard credit, we encourage you to apply for your bond. EZ Surety Bonds partners with more than 30 reputable and well-rated surety companies to find you the best quotes.
The obligee or entity that requires the Wisconsin Auto Dealer Bond is the Wisconsin Department of Transportation. Here are their contact details:
Wisconsin Department of Transportation
Dealer & Agent Section
P.O. Box 7909
Madison, WI 53707-7909
WisDOT central office:
Hill Farms State Office Building
4822 Madison Yards Way,
Madison, WI 53705
Email: DealerLicensingUnit@dot.wi.gov
Dealer licensing: (608) 266-1425
It is quick, easy, and free to obtain your Wisconsin Auto Dealer Bond quote. Simply fill out our quick online application and within 24 hours, one of our friendly surety experts will contact you regarding your free quote.
EZ Surety Bonds provides a hassle-free process for all bond types. If you have any questions, please contact us at 1-800-361-1720 or email bonds@southcoastsurety.com.
For detailed instructions on how to become a licensed vehicle dealer in Wisconsin, read this article. To summarize, here are the steps to take to apply for a Wisconsin Motor Vehicle Dealer License:
The Wisconsin Motor Vehicle Dealer License is valid for two years.
The total bond amount for the Wisconsin Motor Vehicle Bond is $50,000. However, you are only required to pay a small percentage of that amount; this premium rate is determined by your credit score and business experience. With an excellent credit score, you may qualify for a quote as low as 1% of the bond amount. We work with a large number of sureties to offer competitive quotes regardless of the applicant's credit rating. Simply apply on our website today and hear back from our team of bond experts regarding your free quote within 24 hours.
After you purchase the bond, we will mail the original document to you. The Wisconsin Department of Transportation requires applicants to submit the original document with ink signatures alongside the accompanying Power of Attorney (POA) form. Every obligee has its own unique filing requirements, and they are subject to change, so be sure to confirm your obligee's filing requirements before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
