Ohio Motor Vehicle Dealer Bonds

Purchase Your Ohio Motor Vehicle Dealer Bond Today

Why is an Ohio Motor Vehicle Dealer Bond Required?

Surety bonds are required because they are the primary tool the licensing agency uses to hold dealers accountable.

Surety bonds are a solution to the recurrence of used dealership fraud. In Ohio, the customers of used vehicle dealers are protected by a Title Defect Recision Fund (TDR).

The Title Defect Recision Fund

This fund was created to maintain and administer refunds to purchasers of vehicles who suffer damages from a used vehicle dealer who fails to provide a valid certificate of title in the purchaser's name within a 40 day time period.

This fund is also protection for failing or lying to disclose vital vehicle information.

If a used auto dealer fails to provide a title or lies about vehicle information, the customer can make a request to the fund for financial compensation of the vehicle purchase.

To reimburse the fund, the Division of Licensing will make a claim against the dealer's surety bond for the amount of the vehicle purchase, but only up to the bond amount.

The Ohio used dealer bond amount is set at $25,000.

The cost to purchase this bond will be a small fraction of this amount.

How Much Does An Ohio Auto Dealer Bond Cost?

Most auto dealer bonds are credit driven. This means they require a personal credit check of the owner or all owners of the dealership.

This credit check is used by a surety to determine a rate.

The rate multiplied by the $25,000 bond amount is the price you pay.

A surety is just a special division in an insurance company that underwrites surety bonds like auto dealer bonds.

We are Surety Bonds Direct, a specialized agency. We work with the highest A-rated sureties to find you the lowest possible price for your auto dealer bond.

And in the case of the Ohio used dealer bond, we have secured a fixed price of $250 with no credit check required.

This means you can purchase your bond today and have it issued and emailed to you within one business day.

Can You Get a Lower Price

If you know you have great credit, we can use this and see if we can secure an even lower price quote.

It's possible to get your price down to $125 at the very low end.

If you're interested in getting a lower price, use our online price quote form and tell us you want to have your credit run for a lower price.

You can also call a bond specialist to help at 1-800-608-9950.

How Long Does An Ohio Auto Dealer Bond Last?

Every surety bond has a term or the length of time the coverage remains "active".

In Ohio, this use dealer bond has an active term of at least 12 months from the effective date. You choose an effective date when you purchase your bond.

One year from the effective date you'll need to pay a renewal premium on the bond to keep it active.

This is another great reason to work with a surety agency like Surety Bonds Direct.

You get assigned a bond specialist who will manage your bond for you. Your bond specialist will contact you 30 to 45 days in advance to make sure the renewal premium is paid on time so your bond remains active.

Once you pay the renewal premium, you don't have to do anything else. Your bond is active and you can continue selling vehicles.

Motor Vehicle Dealer Bonds And Getting Your Ohio Business License/Registration

Getting your Ohio used dealer license is straightforward.

The Dealer Licensing Division does a good job of outlining the steps and requirements for obtaining your license.

Here are the steps at a high level:

• Secure and meet all of the location (dealership) requirements
• If you have a service facility, meet these requirements
• Complete the used motor vehicle training course prior to application
• Purchase the dealer surety bond
• Provide all the required paperwork
• Pay all applicable licensing fees
• Purchase at least one dealer plate and purchase additional plates if required