Who needs the Motor Vehicle Dealer Bond?
In the State of Alabama, Auto Dealers are required to obtain a $25,000 Motor Vehicle Dealer Bond to be in compliance with Title 40, Chapter 12, Article 8 of the Code of Alabama, 1975 of the Alabama Statutes. All Alabama motor vehicle dealer bonds have a common expiration date of September 30th.
What is the Motor Vehicle Bond?
The Motor Vehicle Dealer Bond protects the party requesting the surety bond, the Obligee, against any financial losses as a result of poor financial choices, damages, unethical decisions, or a failure to adhere to state and local laws on the part of you, the Principal. By obtaining your auto dealer bond, you are telling the Obligee that you can be trusted and that you stand by your business decisions.
What else do I need besides the Motor Vehicle Dealer Bond?
In addition to the bond, the State of Alabama requires that you purchase blanket liability insurance coverage for all vehicles owned and/or associated with the business. The insurance limits are:
Ashton Agency can write your liability coverage too. Contact us today at (800) 451-4854 for a free, no-obligation quote on both your bond and insurance! We can write your bond for up to three years, with discounts available on the second and third years' premiums. Let us save you money!
Not sure what else you might need to get licensed or renewed? Check out the requirements here!
I have my bond and insurance.. What now?
Dealers will submit the original signed bond form to the Alabama Department of Revenue at the following address:
Alabama Department of Revenue
Sales, Use & Business Tax Division
Severance & License Section
PO Box 327550
Montgomery, AL 36132-7550
Telephone: (334) 353-7827
Motor Vehicle Dealer Bonds are also known as: Alabama Auto Dealer Bond, Auto Dealer Bond, Franchise Dealer Bond, MVD Bond, DMV Bond, Dealer Bond, New Car Dealer Bond, New Auto Dealer Bond, and Car Dealer Bond.
Get Bonded Within One Business Day!
Only Ashton Agency can provide you with:
Everyone needs a dealer bond, but by contacting the Ashton Agency, you can be sure you'll be getting the best price available, not to mention our stellar customer service and insider knowledge of the dealer industry. We've been helping auto dealers get bonded for more than 45 years. Let us put that experience to work for you today!
Call us now at (800) 451-4854 for a free quote and we will contact you within 24 hours. We can assist you over the phone to ensure you receive your bond quickly and easily!
Don't have time to speak on the phone? Please fill out our easy online application and fax to (407) 678-2468. We can get you started right away!