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Learn more about Georgia auto dealer bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
Georgia auto dealer bonds are a form of license and permit bond intended to provide protection for the state and for individual consumers. Specifically, these bonds provide protection against financial loss resulting from the unlawful or unethical behavior of the dealer. What constitutes acceptable behavior is established in the terms and conditions of the bond.
In Georgia, used car dealers and used parts dealers must be licensed at the state level, and obtaining a dealer bond is a requirement for licensing. New car dealers are another matter. They are not licensed at the state level but rather by the municipalities in which they operate and may or may not be required to purchase an auto dealer bond. There is no exception to the number of vehicles you sell.
There are three parties to any surety bond agreement. In this case, the obligee requiring the bond is the Georgia State Board of Registration. The principal, the party required to purchase the bond as a prerequisite for licensing, is the owner of the dealership. The surety is the firm that underwrites and issues the bond. Each party has certain rights and responsibilities that are spelled out in the bond’s terms and conditions.
If the dealer causes a financial loss to any party as a consequence of not complying with the terms and conditions of the bond, the injured party has the right to file a claim against the bond. After determining that a claim is valid, the surety will pay it as an advance to the dealer. But the legal responsibility for payment rests with the dealer, who must reimburse the surety for any amount paid out to a claimant.
The Georgia State Board of Registration has established $35,000 as the required amount for used auto dealer bonds. The required amount for used parts dealer bonds is $10,000. Municipal requirements for dealers selling new vehicles and parts varies from one jurisdiction to another. However, dealers pay only a small percentage of the required bond amount as the premium for their bond.
The primary factor in determining how much a dealer will pay as the bond premium is the dealer’s personal credit score. If you maintain good credit, you can expect to pay anywhere between .375% to 5% of the bond penalty amount. For individuals with lower credit ratings, we can still offer the most competitive premiums with financing sometimes being an option.
Yes! We now offer garage liability insurance for those car dealers in Georgia. The legal requirements of liability insurance are as follows:
Minimum of 50k/100k/25k – Or a single limit of $125,000.
Please click here for a questionnaire on your Georgia Garage Liability Insurance.
After you receive your vehicle dealer bond from Absolute Surety, you will need to file it along with the attached power of attorney with:
State Board of Registration of Used Motor Vehicle Dealers
Used Motor Vehicles Division
237 Coliseum Drive
Macon, GA 31217
Use our convenient online system to obtain a quick quote on the bond you need, or give us a call to discuss your bonding needs.
