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Pennsylvania Auto Dealer Bond

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What is a Pennsylvania Auto Dealer Bond?

Any car dealer operating in the state of Pennsylvania must hold a valid license to do so. In addition to an auto dealer license, a Pennsylvania auto dealer bond is also a requirement. The auto dealer bond works as a guarantee that licensed dealerships will interact with customers and transact business according to state laws.

Like other surety bonds, a Pennsylvania auto dealer bond is an agreement between three parties. The principal, the auto dealership, is the party responsible for obtaining a bond. The surety provides the bond to the principal. The obligee, the Pennsylvania Bureau of Motor Vehicles, requires an auto dealer bond as part of the licensing process.

What Does a Pennsylvania Auto Dealer Bond Cost?

Licensed auto dealers selling either new or used vehicles need to obtain a Pennsylvania auto dealer bond of at least $20,000. However, dealers are not required to pay the full amount to secure the bond. Instead, bonds are priced as a percentage of the total, usually ranging from 1 to 10%.

The surety company calculates the price you pay for a Pennsylvania auto dealer bond based on your personal credit score and business financial standing. A low credit score, below 599, may indicate that you are a high risk of a future bond claim. Because claims are paid by the surety but then repaid by you as the auto dealer, having bad credit increases the cost of your auto dealer bond.

How Do You Get a Pennsylvania Auto Dealer Bond?

You can get a Pennsylvania auto dealer bond by submitting a short form online. A free quote is provided based on your personal and business details, and the surety company will work with you to complete your application and the bonding process 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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