Q&A with Todd LoehnertPresident of
A 24-year industry veteran, Todd Loehnert is currently serving as president of the National Association of Surety Bond Producers. Here Loehnert talks about the state of the surety industry, legislative initiatives and how technology will help reshape the surety industry.
The Consumer's Guide to Surety BondsRead our ultimate consumer guide to Surety Bonds, the most straight-forward explanation of surety bonds online.
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Learn everything you need to know right here! In the first installment of our audio Q-and-A series, we talk with Chris Cheatham, a Washington, D.C., construction attorney and an expert in the green building issues facing the surety industry.
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Auto Dealer Bonds are among the most common commercial surety bonds on the market. These surety bonds help protect states and consumers against auto dealers, ensuring they operate according to state laws and regulations. These bonds are required in order for a dealer to obtain a license. There are several names for auto dealer bonds, including MVD bonds, DMV bonds, user car dealer bonds or simply auto dealer bonds.
Every state has its own MVD bond form and its own surety bond amount. Expiration and effective dates also change depending on geography. Only the individual state can lower or raise the amount of the surety bond. Costs can vary greatly, depending on location, state requirements and the age of a given dealership.
The process for obtaining MVD bonds is similar to other surety bonds. Surety companies will examine the past practices, financial health, management structure and other company aspects before deciding whether to issue an auto dealer bond.
Currently, the market has tightened a bit for MVD bonds, although qualified dealers can still typically garner a lower rate. Dealers with less than sterling credit will likely face higher premiums, as sureties often consider MVD bonds more high risk than others commercial bonds. Sureties process an exorbitant number of auto dealer bonds every year, which helps keep bond rates competitive.
There are also a handful of states that require bonds for mobile home dealers.
