Effective October 1, 2020 the Alabama Department of Revenue’s Motor Vehicle Division will consolidate their new, used, wholesale and rebuilder licenses into a Master Dealer License.
The Alabama Motor Vehicle Dealer bond is required by the Department of Revenue’s Motor Vehicle Division. The bond guarantees the principal will abide by all state laws and regulations.
Who needs a Motor Vehicle Dealer bond?
Any person, firm or corporation that conducts business as a motor vehicle dealer must be licensed with the state. The Motor Vehicle Dealer bond is one of the licensing requirements. Motorcycle, trailer, wholesale dealers and rebuilders must be licensed as well. In addition, new and used dealers are required to become designated agents with the Motor Vehicle Department. The motor vehicle dealer bond satisfies this bonding requirement as well.
What are other changes?
- The bond amount increases to $50,000.
- Licenses are effective October 1 to September 30.
- Licensees have a 30-day grace period to renew their license.
- A 15% penalty will be incured for licenses not renewed prior to November 1st.
- There must be a permanent location, with signage, and sufficient space to display motor vehicles for sale.
Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.
How do I get an Alabama Motor Vehicle Dealer Bond from Surety1?
First, start the process by completing our easy to navigate, free online application form. Next, one of our agents will contact you with a no-obligation quote on the bond premium. Then, when you’re ready to move forward, pay the premium and sign the agreement. Lastly, your Alabama Motor Vehicle Dealer bond will be mailed to you by USPS Priority Mail. Overnight delivery is available for an additional fee.
Surety1, an AssuredPartners agency, has been providing surety bonds since 2003. Licensed in all 50 states. Representing over a dozen A rated Surety companies. Surety1 maintains an A+ rating from the Better Business Bureau.
We have live surety bond agents available Monday – Friday, 8:00 – 4:30 PST. Give us a call. We’re glad to help.