Motor Vehicle Dealer Bonds

Written by Michael O'Brien
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Motor vehicle dealer bonds are an essential component of the car buying process. If an auto dealer sells you a car that they claim is in perfect working condition, then that is what you should get. If it breaks down due to a problem they didn't report, whether intentional or not, they should make good by paying for repairs or replacements themselves. This is where the bonding process comes in.

Bonded Dealers

Motor vehicle dealer bonds are issued to automobile retailers for several very important reasons. The most critical of these is protecting the consumer from being ripped off. To prevent a car dealer from engaging in dishonest or negligent practices, a surety company will take financial responsibility for any monetary loss on the part of a consumer being sold inferior merchandise.

Only companies with a proven track record will be issued motor vehicle dealer bonds. If a surety company must step in to settle a financial matter the business they have bonded should be responsible for, it can lead to substantial financial loss on their part. The dealer in question would then have its bond revoked, and be forced to pay for such losses over time.

Obtaining Motor Vehicle Dealer Bonds

Bonding catalogs can be ordered online, displaying a massive directory of surety companies who offer bonds in a wide variety of categories. Although it is much easier today to obtain a bond than it ever was in the past, keep in mind that bonds cannot be issued lightly. Licenses, degrees, years in business, past bonding history, and consumer complaints are just a few of the many areas that will be considered before a reputable surety company will issue a bond.

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