What Is a Wyoming Auto Dealer Bond?
Auto dealers in the state of Wyoming need a valid license. One crucial component of the licensing process is posting a Wyoming auto dealer bond. This type of surety bond protects the public and the state if the auto dealer fails to comply with current laws and regulations involving the operation of the dealership.
A customer of an auto dealer or the state's licensing authority can make a claim against a Wyoming auto dealer bond if legal obligations or requirements are not met by the dealer. Claims can be a costly endeavor for the auto dealer, so having an auto dealer bond reduces the potential for fraudulent or otherwise illegal business practices.
How Does a Wyoming Auto Dealer Bond Work?
Like other surety bonds, a Wyoming auto dealer bond represents a three-party contract.
The obligee of the bond is the state department responsible for overseeing auto dealers.
The auto dealer is required to secure the bond for licensing purposes, and they are known as the principal of the bond.
The surety company provides the bond to the auto dealer. They also pay for claims made on the bond and then wait for the auto dealer to repay them.
Wyoming Auto Dealer Bond Obligee Details
The auto dealer bond obligee in Wyoming is as follows:
Wyoming Department of Transportation
Motor Vehicle Services
5300 Bishop Boulevard
Cheyenne, Wyoming 82009
Who Needs a Wyoming Auto Dealer Bond?
In Wyoming, any individual or business engaging in the sale, exchange, or purchase of certain motor vehicles is an auto dealer and must have a license. New and used auto dealers, along with motorhome and truck dealers, must have a Wyoming auto dealer bond to fulfill licensing requirements.
How Do You Get a Wyoming Auto Dealer Bond?
To get a Wyoming auto dealer bond, a brief application process must be completed. This is done through a short online form that includes information regarding the bond amount, bond type, and financial history of the auto dealer.
The surety company provides a bond quote based on these details and gives the details necessary to finalize the bonding process.
How Much Does a Wyoming Auto Dealer Bond Cost?
The cost of a Wyoming auto dealer bond depends on both the amount of the bond required by state law and the financial standing of the auto dealer. Any auto dealer that requires a license must post an auto dealer bond of no less than $25,000, but this bond amount does not represent the cost of the bond.
The surety company that issues a Wyoming auto dealer bond calculates the cost as a percentage of the total bond amount, known as the bond premium. Wyoming auto dealers typically pay between 1 and 10 percent of the bond total, depending on their credit history.
Can I Get a Wyoming Auto Dealer Bond with Bad Credit?
Auto dealers with a strong financial standing have a bond premium that falls on the lower end of this range. If you have bad credit, you can get a bond, but you’ll likely pay a higher bond premium.
How Do I Renew My Wyoming Auto Dealer Bond?
All Wyoming auto dealer bonds expire one year from the date of issue, so it is necessary to renew the bond to stay in compliance. Renewing your bond is hassle-free, because you’ll receive reminders each year from your surety company.