Sweet home, Alabama Where the skies are so blue Sweet home, Alabama (oh my baby) Lord, I'm comin' home to you (here I come, Alabama). No state has a more popular song dedicated to it than the state of Alabama. If you want to be an auto dealer in Alabama, you need to maintain a $50,000 Motor Vehicle Dealer Bond. The bond is required for dealers to acquire and maintain their auto dealer licenses. The licensing requirement applies to all auto dealers in Alabama, which includes new vehicle dealers, used vehicle dealers, wholesalers and vehicle rebuilders. The specific requirement is outlined in the Code of Alabama 1975.
To get started, simply click on the blue “Quote” button below.
Fraud is very common among motor vehicle dealers, whether intentional or not. Actions such as odometer rollback can result in serious financial impact on the car buyers. Therefore, the bond is meant to achieve two goals:
In the State of Alabama, the title service provider and the motor vehicle dealer use the same bond form. They just need to place check marks on different parts of the bond form. If you are applying for a motor vehicle dealer bond, please check the first box next to the “Master Dealer”. If you are applying to be a title service provider, you would need to check the boxes next to both “As a Designated agent” and “As a Title Service Provider”.
You can get your bond for up to three years. Your license is typically renewed every two years so we recommend you buy the bond with a two year term. If you buy a multi-year bond, the premium rate per year is typically cheaper
Your credit score will be the main factor used to determine the pricing of your bond. The bond is based on different pricing tiers tied to your credit score. Only a soft credit check will be done on your credit so your credit score won’t be affected.
Some states, such as Hawaii, require a different bond for different sales volume. For example, the bond amount is $10k for used dealers who sell less than 60 vehicles a month. In the case of Alabama, the bond amount is the same regardless of how many vehicles you sell per month.
We are a surety bond agency and we partner with 10+ bonding carriers that offer different pricing and have different underwriting appetite. Some have stricter requirements than others. We have a few bonding carrier partners who can accept applicants with a lower credit score. The downside is that they typically offer much higher prices to compensate for accepting candidates with lower credit score.
A hard copy is not required for the Alabama Motor Vehicle Dealer Bond. You can print out the digital version of the bond we emailed to you. Then you can type the name of the business representative and sign as the business representative. Then, you can submit the bond with the rest of the dealer license documents to the Motor Vehicle Division License Portal. You would need to register or login your MVTRIP account in order to apply for, renew and update your licenses.
To make changes on a bond, you can simply call us and request a rider form. We can change much information on the bond, including effective date, principal name, and principal address. If you would like to make a change on a bond, please give us a call at (888) 236-8589 or email us at support@suretynow.com.
Your bond should be renewed before the expiration date. If you decide to bond with us, we will take care of your bond renewal. We will contact you 60 days in advance of your bond expiration date to remind you about your renewal and will work with you to get your bond renewed.
