Auto Dealer Bonds

Written by Michael O'Brien
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Auto dealer bonds are one of the most important aspects of being able to shop for cars safely. When a dealer makes a claim or sells an automobile that is in a certain condition, what is to stop them from hiding things or being less than truthful? Buying from a bonded auto dealer is one way to avoid the cliche used car shyster type.

The Importance of Auto Dealer Bonds

Auto dealer bonds are distributed by surety companies as a means of shifting responsibility for faulty merchandise from the buyer to the surety company. Since surety companies stand to lose quite a bit should a dealer fail to come through on a warranty or claim, only reliable dealers can become bonded.

Car retailers who possess auto dealer bonds are obviously the best from which to buy. The only question becomes, how do you know if an automobile dealer is bonded? Asking them outright is one way. It's also important to find out which surety company has bonded them.

Investigative Reporting

The next step is to use the Internet for a little detective work. An Internet key word search for auto dealer surety companies will produce lists and directories showing many auto dealer bonding companies complete with contact information. Calling the company with which a dealer claims to be bonded will allow you to inquire about their history and status as a fully bonded and licensed auto dealer.


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