Opening a car dealership is a big step, and one of the first things your state will ask for is an auto dealer bond. If you are new to this, here is a simple starter guide.

Why you need it

A dealer bond is required before your state issues your dealer license. It promises you will run an honest dealership, follow the law, and pay the right title fees and taxes. It protects your buyers and the state, not you.

How much it is

Your state sets the bond amount, often between 10,000 and 75,000 dollars. That is the most a claim could pay, not your cost. You pay a small percent of that amount each year, based on your credit. Many dealers pay only a few hundred dollars a year.

Can a new dealer qualify?

Yes. New dealers get bonded every day. With no business history, the bond often looks at your personal credit instead. We shop several markets to find a fair rate for a brand new lot.

Stay claim free

Most dealer claims come from two places: a buyer who feels cheated, or unpaid title fees and taxes. Both are easy to avoid. Be honest in every sale, write down what you tell buyers, and file titles and taxes on time. Keep copies of every deal.

Renew on time

Your bond and your license go together. Keep the bond active, because a lapse can put your license on hold. Mark your renewal date and answer any notices early.

Junno Surety bonds new and used dealers across Georgia. Send us your bond amount, and we can often issue it the same day so you can open on schedule.

Related guide: Read the Auto Dealer Bond guide.