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Connecticut Auto Dealer Bond

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What is a Connecticut Auto Dealer Bond?

Many businesses operating in the state of Connecticut must follow specific rules for obtaining a license in order to run the business legally, including motor vehicle dealers. Any dealership or individual involved in the sale or exchange of vehicles must hold a valid license and have a surety bond in place. This surety bond, known as a Connecticut auto dealer bond, acts as a form of protection for customers of licensed auto dealers.

If an auto dealer fails to comply with state laws when conducting transactions with customers, a claim can be made against a Connecticut auto dealer bond. A successful claim results in compensation paid to the individual or party involved in the transaction to cover any financial losses incurred. Connecticut auto dealer bonds are meant to ensure the buying public has some safety net when conducting business with licensed auto dealers.

Who Needs a Connecticut Auto Dealer Bond?

In Connecticut, auto dealers may fall into different categories, depending on the types of vehicles they sell or exchange. Both new and used auto dealers are required to have a Connecticut auto dealer bond in place. Auto repairers and rental or leasing dealers are also required to have a valid bond in order to conduct business.

Connecticut Auto Dealer Bond Obligee Details

As with other surety bonds, a Connecticut auto dealer bond represents a contract between various parties. The principal of the bond is the licensed auto dealer, while the surety company is the one providing the bond to the principal. The state's licensing authority that requires a bond to be in place is known as the obligee of the bond.

Connecticut auto dealer bonds have the following obligee:

State of Connecticut Department of Motor Vehicles

Dealers and Repairers Section

60 State Street

Wethersfield, Connecticut 06161

Phone: 800-842-8222

How Much Does a Connecticut Auto Dealer Bond Cost?

A Connecticut auto dealer bond's price is determined by several different factors, the first of which is the amount of the bond that needs to be secured. For repairers, a bond of $5,000 is required, while rental or leasing companies must have a $10,000 bond. New and used auto dealers in Connecticut must have a $50,000 bond. Auto dealers and repairers do not pay the entire amount of the bond, however.

The surety company providing a Connecticut auto dealer bond calculates a bond premium which the auto dealer pays. The bond premium ranges from 1 to 10% of the bond total. Auto dealers that have a solid financial history and healthy credit background pay a lower bond premium than auto dealers with a limited or negative financial history.

How do You Get a Connecticut Auto Dealer Bond?

Licensed auto dealers in Connecticut may start the process of obtaining an auto dealer bond by submitting a brief online application. The surety company reviews the details of the application, including the bond type, amount, and financial history of the auto dealer, to determine the bond price. Once the bond premium is paid, a Connecticut auto dealer bond is in place. However, a bond must be renewed at the same time an auto dealer license renews, every two years.

Frequent Questions

What does an auto dealer bond cost?

Costs are a percentage of the auto dealer bond amount that's required of you, which is based on your personal credit. Use our bond pricing tool to get a quick ballpark estimate.

Can I get a bond with bad credit?

Yes. You can get approved for a bond regardless of your credit situation. However, the price will increase. You can apply to get an instant approval. As the largest writer of surety bonds in the U.S., we have access to high risk markets that many other agencies do not.

How long does the application take?

It only takes minutes, as we can approve you for your bond instantly online. You can get a no obligation quote on our website at any time.

Can I get auto dealer bond insurance to protect myself?

No. An auto dealer bond does not protect you, it protects the public. However, you can protect yourself or your customers by getting fidelity bonds.

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Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
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Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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About JW Surety Bonds
We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company.