There are multiple classifications of licenses for the state of Connecticut.
Motor Vehicle Dealer Bond
General Repairer Bond
Leasing and Rental Company Bond
Limited Repairer Bond
No matter how many cars you sell, as long as you deal with cars for anything other than for your own non-profit related reasons, you need a bond and a license. According to the Connecticut Department of Motor Vehicles, it’s illegal to repair or sell motor vehicles to consumer without a Connecticut dealer license is
The bond is created to provide financial compensation to the customer of the bonded dealer for any loss suffered by the customer due to actions of the bonded dealer. Note that the customer could include anyone that is engaged in the business of the bonded dealer, including those who finance the inventories for the dealers.
A claim on the bond is generally because the bonded dealer violates certain laws and regulations by the Connecticut Department of Motor Vehicles, outlined in Chapter 54 of the Connecticut General Statutes. Note that the payout of the claim won’t be made until a hearing is held with the Commissioner of Motor Vehicles in accordance with the provisions of Chapter 54. If the hearing concludes with the claim being valid, a payout would be made to the party that filed the claim. Then, the surety company will go after the bonded dealer to recoup the claim loss amount. This is because different from insurance, surety company will need to be restituted of the full claim amount. In other words, the bonded dealer whose irresponsible actions caused the claims and therefore the bonded dealer needs to reimburse the surety the entire claim amount.
However, claim can be avoided. The most common causes of claims result from the following actions:
Please ensure that you avoid the actions listed below and comply with all motor vehicle dealer regulations. You won’t face the claim in your auto dealer career.
The official name for the Connecticut motor vehicle dealer bond is the following on the top left corner of the bond.
SURETY BOND - MOTOR VEHICLE
DEALER REPAIRER/LIMITED REPAIRER, OR LEASING/RENTING CO.
K-158 REV. 9-22
On the bond form, you would ensure the following fields are filled out by the surety companies
After making sure those information above are filled out by the surety companies, you also need to make sure you fill out and print and sign your name.
The original bond and the power of attorney must be mailed to the following address
DMV - Dealers & Repairers
Unit 60 State St, Room 102A
Wethersfield, CT 06161