Georgia Auto Dealer Bonds, and More
Learn more about Georgia Auto Dealer Bonds, and More
How much does an auto dealer bond cost in Georgia?
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Georgia State Board of Registration Used Motor Vehicle Dealers Division as part of the licensing requirements for used car dealerships to conduct business in the state. The Used Motor Vehicle Dealers Division sets the total bond amount based on the type of dealership license:
- $35,000 bonds for used motor vehicle dealers, used motor vehicle brokers, motor vehicle auctioning companies, and leasing agencies
- $10,000 bonds for used auto parts dealers, rebuilders, and salvage dealers
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Georgia auto dealer bonds typically cost between 1% and 3% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Georgia used auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for used auto dealer surety bonds in the State of Georgia.
- EZ Surety has issued used car dealer bonds for premiums as low as $104.
- EZ Surety has issued salvage dealer bonds for premiums as low as $100.
New car dealers are licensed at the municipal level, not at the state level. As such, surety bond requirements for new car dealers will depend on local regulations.
Why are auto dealer bonds important in Georgia?
Georgia auto dealer bonds provide protection for customers, creditors, and the state government. When a Georgia motor vehicle dealer posts a surety bond, they provide a guarantee to the Used Motor Vehicle Dealers Division that they will conduct business in compliance with the conditions listed in the Georgia Code Title 43 Chapter 47. Used Motor Vehicle and Used Motor Vehicle Parts Dealers.
If the auto dealer fails to comply with the code, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
How to get your auto dealer license in Georgia
To obtain your used auto dealer license in Georgia, you must meet the Used Motor Vehicle Dealers Division licensing requirements by completing the following steps:
- Pass a pre-license inspection to ensure that the dealership complies with the regulations for an established place of business
- Complete and submit an application form
- Post a $35,000 surety bond ($10,000 bond for used parts dealers)
- Obtain a certificate of insurance
- Complete a background check including fingerprints
- Provide a sales tax number obtained through the State Department of Revenue
- Complete the established place of business requirements, install a landline telephone and provide photographs
- Install the appropriate signage advertising business as a used car dealership
- Attend the pre-licensing seminar
- Pay the $170 application fee and $170 license fee for each additional lot
Georgia used motor vehicle dealer licenses expire on March 31 of every even number year, meaning they are valid for a maximum two-year period. Used car dealers must pay a $150 renewal fee on or before the expiration date and complete six hours of continuing education for their license to stay active.
Failure to pay the renewal fee on time will result in a $250 late renewal fee that must be paid before May 31. If a dealer misses the late renewal fee, their license will be revoked and they will have to pay a $420 reinstatement fee and submit a new license application.