Illinois auto dealer surety bonds (also called motor vehicle dealer bonds, or designated agent bonds) are mandated by the Illinois Secretary of State as part of the licensing requirements for dealerships to conduct business in the state. The Secretary of State sets the total bond amount at $50,000.
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Illinois 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 an Illinois 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 auto dealer surety bonds in the State of Illinois.
Illinois auto dealer bonds provide protection for customers, creditors, and the state government. When an Illinois motor vehicle dealer posts a surety bond, they provide a guarantee to the bond's Obligee (the Secretary of State) that they will conduct business in compliance with the conditions listed in the Illinois Vehicle Code.
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.
To obtain your auto dealer license in Illinois, you must meet the Illinois Secretary of State licensing requirements by completing the following steps:
Illinois Auto dealer bonds are valid for the same term as the license and will expire on December 31st of the year the license is set to renew.