Get Your Montana Motor Vehicle Dealer Bond
$50,000 Bond
Expires 12/31
$15,000 Bond
Expires 12/31
Expires 12/31
$5,000 Bond
Expires 12/31
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Who Is Required To Purchase an Auto Dealer Bond In Montana?
Every vehicle dealer classification is required to purchase an auto dealer bond.
Here are the dealer classifications in Montana:
- New vehicle dealers
- Used vehicle dealers
- Brokers
- Auto auctioneers
- Wholesalers
Each license has an independent application process which requires its own surety bond to complete the process.
New Manufactured Home Dealers
While new manufactured homes are not considered a vehicle, the licensing is managed by the Division of Motor Vehicles.
New manufactured home dealers are required to purchase a surety bond.
The Montana Auto Dealer Bond Amounts
Here are the bond amount for each license classification:
Dealer Classifications | Bond Amount |
---|---|
New and Used Vehicle Dealers | $50,000 |
Selling Only Motorcycles and Quadricycles | $15,000 |
Motorboats, Personal Watercraft, Snowmobiles, and Off-Highway Vehicles | $5,000 |
New Manufactured Homes Dealer | $50,000 |
As you see in more detail below, this bond amount is the maximum amount of financial coverage available to the state of Montana and/or customers if they are purposefully and financially harmed by a dealer.
Get Your Bond Pricing Today
You can get instant pricing for your Montana auto dealer surety bond. Click the button below. You need to know the amount of your bond.
Need Help? Call Us Today
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
Why is a Montana Motor Vehicle Dealer Bond Required?
The Montana Division of Motor Vehicles wants to ensure the public is served by reputable and helpful vehicle dealers. This is why you must obtain a license to legally sell vehicles in the state.
This licensing process includes:
- Purchasing a surety bond as described above
- Purchasing the minimum levels of liability insurance
- Meeting zoning and dealership inspection requirements
- Paying all the applicable application fees
- Submitting your Franchise letter if you're a new vehicle dealer
Even with all of the requirements dealers have to make to obtain a license, every year there will be some dealers who financially harm their customers on purpose to make more money.
Examples of this dealership fraud include:
- Improperly transferring a title
- Selling vehicles with no title
- Misrepresenting vehicle information like mileage, manufacture year, or condition
- Stealing customer deposits
- Failing to pay the correct sales taxes to the Department of Revenue
If a dealer is found guilty of these actions or similar actions, the customer or the state of Montana (in the case of failing to pay sales tax) can make a claim against the dealer's surety bond for financial compensation.
However the sum or any single and all claims is limited to the amount of the surety bond.
How Much Does Montana Auto Dealer Bond Cost?
At a high level, all surety bonds regardless of type are priced based on a rate that is quoted from a surety.
A surety is an insurance company that underwrites auto dealer bonds. And every surety will assess an applicant based on their own risk levels consider the:
- Personal credit or owner and owners
- Dealer industry and experience
- Prior bond claims if an owner has been licensed in the past
From these factors they will quote a rate and this rate multiplied by your bond amount is your price.
The rate one surety quotes can be one, two, even three percentage points different. This means you can end up saving hundreds, even thousands of dollars when you purchase your bond.
How To Find The Lowest Price For Your Auto Dealer Bond
We are Surety Bonds Direct, a surety agency. We work with the highest A-rated sureties to help our customers find the lowest possible price and make buying a surety bond easy.
Montana Auto Dealer Bonds With No Credit Check
The following bonds can be instantly purchased with no credit check for the lowest possible prices.
Classification | Bond Amount | Price | Click to Get Pricing |
---|---|---|---|
Selling Only Motorcycles and Quadricycles | $15,000 | $150 | Click to Buy Today |
Motorboats, Personal Watercraft, Snowmobiles, and Off-Highway Vehicles | $5,000 | $100 | Click for Buy Today |
Montana Auto Dealer Bonds That Required a Credit Check
These bonds involve more risk for the surety and this is why they will require a credit check and industry examination to quote a custom price.
Classification | Bond Amount | Click to Get Pricing |
---|---|---|
New and Used Vehicle Dealers | $50,000 | Click for Quote |
New Manufactured Home Dealers | $50,000 | Click for Quote |
Example New and Used Dealer Pricing
Remember, each surety can quote a vastly different rate for whatever reason they have internally.
Here are typical rates we see ranging from the lowest to average. Pay attention to the difference in price.
Bond Amount | Premium Rate | Total Cost |
---|---|---|
$50,000 | 0.05% | $250 |
$50,000 | 1% | $500 |
$50,000 | 2% | $1,000 |
$50,000 | 3% | $1,500 |
$50,000 | 4% | $2,000 |
You can easily save hundreds, even thousands of dollars which you can put towards application fees and dealer plates.
It costs you nothing to have us price shop for you and you don't have to purchase once you get pricing.
Click here and complete the quote form to get pricing today. You can call a bond specialist to speak with a real person at 1-800-608-9950.
How Long Does The Montana Auto Dealer Bond Last?
When you're ready to purchase your bond, complete our online order form.
After your payment is processed our bond issuance team will prepare your bond with the:
- Correct bond form
- Required signatures and seals
- Power of attorney
Once your bond is ready we will email you a copy to submit to the Division of Motor Vehicles.
The Division of Motor Vehicles requires all surety bonds to have a hard expiration date or December 31st each year.
This means when you purchase your bond the price you pay will be prorated based on the purchase date and the end of the year.
This also means you need to renew your every December 31st.
Renewing Your Vehicle Dealer Bond
Renewing your bond is easy when you purchase through Surety Bonds Direct.
You get assigned your own bond specialist and it's their job to manage your bond.
Your bond specialist will contact you towards the end of November to remind you about your bond expiration. They will also have renewal pricing ready to go so you can just pay and keep your bond active.
Once you pay your renewal premium, the bond you filed when you got licensed will automatically remain active. This is called a continuous bond.
Get Your Bond Pricing Today
You can get instant pricing for your Montana auto dealer surety bond. Click the button below. You need to know the amount of your bond.
Need Help? Call Us Today
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
Motor Vehicle Dealer Bonds And Getting Your Montana Business License/Registration
Montana has a very straightforward licensing process with clear requirements. Find all the applicable forms here.
At a high level, the licensing steps are:
- Decide on your license classifications or classification
- Purchase the minimum amount of liability insurance
- Purchase your surety bond or surety bonds if you're going for multiple licenses
- Based on your dealership location get proof of appropriate zoning and pass the inspection
- Complete your application and pay all required fees
When you're ready to get the surety bond process completed click here and complete our quote form. It's fast to fill out and if you prefer to speak with a person, call a bond specialist at 1-800-608-9950.
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