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North Dakota Auto Dealer Bond

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What is a North Dakota Auto Dealer Bond?

Many states require auto dealerships to obtain a license prior to doing business with customers. One component of the licensing process is posting a North Dakota auto dealer bond for new and used car dealerships operating in the state. A North Dakota auto dealer bond works as a form of security against fraud for customers doing business with the dealership. It also ensures a licensed auto dealer complies with state regulations and industry standards.

Similar to other surety bonds, a North Dakota auto dealer bond includes three parties: the principal required to obtain the bond, the obligee, in this case, the North Dakota Department of Transportation, requiring a bond, and the surety company providing the bond. When a claim is made against a bond, the surety company pays the claim amount, but the principal is responsible for repaying any claims.

What Does a North Dakota Auto Dealer Bond Cost?

A North Dakota auto dealer bond of $25,000 is required for all new and used dealerships. However, an auto dealer is not required to pay the full bond amount. Instead, dealers pay a small percentage of the bond requirement, ranging from 1 to 10% of the total. The percentage you pay depends on your personal credit history and financial standing of your business.

Because the surety company extends payment for claims on your behalf, there is risk involved in providing an auto dealer bond. Dealers with bad credit pose a greater risk to the surety than dealers who have a higher credit score. To offset increased risk, the surety company charges a higher percentage of the bond for auto dealers with bad credit.

How Do I Get a North Dakota Auto Dealer Bond?

Securing a North Dakota auto dealer bond starts by submitting a brief online application. Your business details and personal credit are reviewed, and the surety company then provides you with a quote for your auto dealer bond.

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 you 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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Jennifer Henson
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.
David Tillotson
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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