Alaska Motor Vehicle Dealer Bond

The  Alaska Motor Vehicle Dealer Bond or Alaska Motor Vehicle Dealer Buyer’s Agent Surety Bond, is a type of surety bond required by the Alaska Department of Administration, specifically the Division of Motor Vehicles. The bond amount is $100,000 for Motor vehicle dealers and $25,000 for Motorcycle-only dealers. the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to get an Alaska Motor Vehicle Dealer Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Alaska Motor Vehicle Dealer Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Alaska Motor Vehicle Dealer Buyer’s Agent Surety Bond Details

In Alaska, anyone who is licensed as a dealer of motor vehicles, motorcycles, or acts as a buyer’s agent needs an Alaska Motor Vehicle Dealer Bond. This includes:

• New and used car dealers
• Motorcycle dealerships
• Buyer’s agents who negotiate on behalf of a buyer to purchase a motor vehicle from a licensed dealer in Alaska

By requiring this bond, the state aims to protect consumers from financial losses caused by dealer misconduct. The bond guarantees that the principal will abide by all Alaska state laws and regulations outlined in the provisions of AS 08.66. If the surety company pays a claim on the bond, it will seek restitution from the bond principal (licensee). The bond remains in full force and effect until it is cancelled. If it is cancelled, the principal must submit a notice of cancellation to the Commissioner of Motor Vehicles in Anchorage Alaska.

Licensing

Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.

To obtain an Alaska Motor Vehicle Dealer license, there are several requirements you need to meet. Here’s a breakdown of the key steps involved:

1. Business Registration:
   • State Business License: You’ll need a “LOB 42: Trade” business license issued by the Alaska Division of Corporations, Business and Professional Licensing [Alaska business license].
2. Dealership Location:
   • Permanent Location: Secure a permanent place of business for your dealership that complies with local zoning regulations [Alaska dealer license].
3. Financial Instruments:
   • Dealer Surety Bond: Obtain a Motor Vehicle Dealer’s/Buyer’s Agent Surety Bond in the required amount ($100,000 for motor vehicles, $25,000 for motorcycles) [Alaska motor vehicle dealer bond].
   • Dealer Garage Insurance: You’ll need garage insurance to cover your vehicle inventory.
4. Application and Fees:
   • Application Form: Request and complete the Application for Dealer License from the Alaska Division of Motor Vehicles [Alaska dealer license application].
5. Supporting Documents: Attach required documents to your application, including:
   • Passport photos of owners/partners/officers involved in the dealership.
   • Proof of your business license.
   • Completed Application for Dealer Plates (if applicable).
   • Application Fees: Pay the necessary fees associated with the application process.
6. Additional Considerations:
   • Background Check: Be prepared for a background check as part of the licensing process.
   • Training: Depending on your specific situation, dealer training courses may be required.

Remember, this is a general overview. It’s recommended to consult the Alaska Division of Motor Vehicles for the latest information and any specific requirements that may apply to your situation [Alaska DMV motor vehicle dealer].
^{The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.}