If you are among the many used motor vehicle dealers in the state of Georgia, it is important to be aware that your license will be expiring on March 31 of this year, as these licenses renew biennially on even years. Therefore, you must complete the renewal process, which includes the renewal of your surety bond, on or before that date.
How do used motor vehicle dealers in GA become licensed in the first place?
If you are not currently licensed as a used motor vehicle dealer in Georgia, but are interested in obtaining one, you will want to be aware of all requirements established by the State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers. The list of requirements that must be met in order to become licensed includes, but is not limited to:
- Complete an application
- Provide the board with a $35,000 surety bond and a certificate of insurance
- photographs as required by Rule 681-3-.02
- Attending a pre-licensing seminar
- Application for a state sales tax number
- Submit to a fingerprint-based criminal background check
- Pay all applicable fees
For further information regarding the licensing requirements, please refer to the state-issued application information form.
What will it cost to renew my bond?
Georgia used vehicle dealer bonds are subject to strict underwriting and, therefore, the premium you will pay will be determined almost entirely by the owner or owners’ personal credit. With flawless credit, a business that is currently licensed can be approved to renew their bond for just $275 for two years! However, because credit varies from person to person, you will want to contact a surety professional in order to find out exactly how much your renewal will cost.
What will happen if I do not renew my bond?
These bonds are written on behalf of any purchasers of any used motor vehicle and their vendees or successors in title to protect them from any damages incurred as a result of a dealer misrepresenting information regarding to liens of titles. The bond also protects against a dealer’s breach of warranty regarding liens or titles of vehicles being sold.
Since the bond is required as a guarantee of the individual’s legitimate performance of his or her duties as a used motor vehicle dealer, it is of the utmost importance to have a valid surety bond in the full amount of $35,000. Failure to comply with O.C.G.A. Section 43-47-8(h) could result in a suspension and/or revocation of the license, at which point it becomes illegal to continue operation as a used motor vehicle dealer.
Once the premium has been paid and the bond issued, it will remain in full force and effect for the entire term of the license. However, the surety may cancel the bond at any time by providing the Board with a certified letter no less than 30 days prior to the proposed date of cancellation.
How can I get bonded now?
If you are looking to bond a brand new auto dealer business in Georgia or wondering if you might be overpaying for your existing bond, contact SuretyBonds.com to speak to a surety agent directly. Oftentimes, the experts at SuretyBonds.com are able to find owners much lower rates than what they are currently paying through their existing surety provider or company. You can also visit our dedicated bond page to learn more about licensing and bonding requirements. Call 1-800-308-4358 or click below to request a quote today!
