Auto dealers in Alabama are required by the Department of Revenue, Motor Vehicle Division to maintain a $50,000 Motor Vehicle Dealer bond. The bond is required for dealers to acquire and maintain their auto dealer licensing rights. The licensing requirement applies to all auto dealers in Alabama, which includes used, new, franchised and wholesale dealers. The specific requirement is outlined in the Code of Alabama 1975.
Our team has navigated this process extensively and have successfully helped many dealers in Alabama obtain their bonds. To get started, simply fill out our quick three-minute form, and we'll provide you with an instant quote.
Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.
Bond Amount: $50,000
Required By: Alabama's Department of Revenue's Motor Vehicle Division
Yes, there is a separate $50,000 Automotive Dismantler and Parts Recycler bond for auto recycling businesses. We offer this type of bond as well, and you can select it from the “Specific Bond” dropdown when going through the quote process for an Alabama auto dealer bond.
Yes, but it won't hurt your credit score. When you apply for an Alabama auto dealer bond, the insurance companies will check your credit to see if you're eligible and to decide how much it will cost. This type of credit check is called a "soft" credit check, and it doesn't harm your credit score.
Our goal is to offer same-day bonding service in most situations. Once we receive a quote from our insurance partners, your pricing is set, and the process can be completed immediately. We work hard, even on weekends, to ensure a quick bonding process. Our work hours are Monday to Saturday from 9:30 am to 7 pm CST, and on Sunday, our hours are from 11:30 am to 7 pm CST. We're the only surety agency that provides service on weekends.
You can minimize the chances of bond claims by adhering to the auto dealer guidelines specified by the state of Alabama. Most of this is just conducting business in a truthful and transparent manner, with a focus on prioritizing the customer's best interests. This involves ensuring that all fees and taxes associated with vehicle sales are paid appropriately, and that customers receive valid car titles. By submitting your bond, you're verifying your promise to fulfill all legal responsibilities connected with operating an auto dealer business in Alabama.
Yes, if you go with a 1 year term, then the bond expires 1 year after the bond start date and the bond must be renewed before the expiration date to maintain your license. If you choose to bond with us, we’ll handle renewals for you so you can focus on your business. We’ll even shop around for you during renewal to see if the price can be lowered.
The cost of an Alabama dealer bond is influenced by different factors, such as the applicant's credit score, dealer experience, and the insurance company providing the bond. Generally, the credit score is the most important factor, followed by the insurance provider. To ensure our clients receive the best possible rates, we partner with over 10 insurance companies that offer competitive pricing. If you come across a better price elsewhere, please let us know, and we'll do our best to match it.