How much does an auto dealer bond cost in Ohio?
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Ohio Bureau of Motor Vehicles (BMV) as part of the licensing requirements for dealerships to conduct business in the state. The BMV sets the total bond amount at $25,000.
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Ohio 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 Ohio 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 Ohio.
- EZ Surety has issued motor vehicle dealer bonds for premiums as low as $250.
Why are auto dealer bonds important in Ohio?
Ohio auto dealer bonds provide protection for customers, creditors, and the state government. When an Ohio motor vehicle dealer posts a surety bond, they provide a guarantee to the bond’s Obligee (the Ohio BMV) that they will conduct business in compliance with the conditions listed in the Ohio Revised Code § 4505.181 and Ohio Administrative Code 4501:1-3-11.
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 Ohio
To obtain your auto dealer license in Ohio, you must meet the Ohio Bureau of Motor Vehicles licensing requirements by completing the following steps:
- Complete the application for dealer licensing
- Post the $25,000 surety bond
- Provide electronic fingerprints
- Ensure your place of business meets all requirements
- Install the proper signage at the business location
- Apply for an Ohio Vendors Number and register with the Ohio Secretary of State
- Complete a dealer educational class
- Have your place of business inspected by a BMV official
- Pay all application and licensing fees