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Utah Auto Dealer Bond

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What is a Utah Auto Dealer Bond?

Like nearly all states, Utah requires auto dealerships to have a valid license in order to do business legally. Part of the licensing requirements includes posting a Utah auto dealer bond which provides certain protections to customers doing business with the dealership. If fraudulent activity or illegal business practices take place, or if a dealership fails to comply by state laws, a claim can be made against the bond.

A Utah auto dealer bond involves the obligee requiring the bond, which is the Utah Motor Vehicle Enforcement, the surety company providing the bond, and the principal required to secure a bond. Surety bonds work as a form of extended credit to the principal, covering bond claims when they arise. Claims are then repaid by the principal, and this makes it essential to operate in line with state regulations to keep claims to a minimum.

What Does a Utah Auto Dealer Bond Cost?

New and used auto dealers in Utah are required to post a bond of $75,000 in order to meet licensing rules. A $10,000 bond is necessary for motorcycle and small trailer dealerships. However, the total bond amount does not fall on the shoulders of the licensed auto dealer. Instead, a Utah auto dealer bond is priced as a percentage of the bond amount, usually ranging from 1 to 10%.

The percentage you pay for a Utah auto dealer bond, known as the bond premium, is calculated based on your personal credit score and other financial information related to the business. If you have a low credit score or a credit history that includes bankruptcy, lien, or civil judgment, you will pay a higher bond premium.

How Do I Get a Utah Auto Dealer Bond?

You can start the process of obtaining a Utah auto dealer bond by submitting a short online application.

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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