How much does an auto dealer bond cost in Oklahoma?
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Oklahoma Used Motor Vehicle and Parts Commission as part of the licensing requirements for used car dealerships, used auction dealers, and wholesale motor vehicle dealers to conduct business in the state. The Parts Commission sets the total bond amount at $25,000 for used car dealers and wholesalers. Used auction dealers require a $50,000 surety bond.
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Oklahoma 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 Oklahoma 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 Oklahoma.
- EZ Surety has issued used car dealer bonds for premiums as low as $306.
Why are auto dealer bonds important in Oklahoma?
Oklahoma auto dealer bonds provide protection for customers, creditors, and the state government. When an Oklahoma motor vehicle dealer posts a surety bond, they provide a guarantee to the bond’s Obligee (the Parts Commission) that they will conduct business in compliance with the conditions listed in the Oklahoma Used Motor Vehicle Dealer Laws (47 0.S. ‘ 581 et seq.).
If the auto dealer fails to comply with the laws, 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 Oklahoma
To obtain your used auto dealer license in Oklahoma, you must meet the Oklahoma Used Motor Vehicle and Parts Commission licensing requirements by completing the following steps:
- Complete the dealer license application
- Post the appropriate surety bond
- Provide proof of garage liability insurance
- Provide a copy of the current certificate of incorporation
- Install the required signage at the established place of business
- Provide photos from outside the business location
- Have the place of business inspected by a commission inspector
- Pay all application and licensing fees
Oklahoma used auto dealer licenses expire bi-annually on December 31st of odd-numbered years.