The state of Arizona does require auto dealers to file a motor vehicle wholesaler bonds in Arizona. These surety bonds must be filed with the Department of Motor Vehicles prior to any auto dealer license being issued. The purchase of the auto dealer wholesaler bond can be a confusing process for many people, but the following information may make it a bit easier.
The motor vehicle wholesaler bond is designed to provide protection to auto buyers and to the state of Arizona. This protection exists because some auto dealers knowingly commit fraud against their customers. When a wholesale car dealer has a surety bond of this type on file, it is a clear indication that they will adhere to the laws for auto dealerships within the state of Arizona.
Motor vehicle wholesaler bonds are a major help in regulating the sale of all cars in the state. The bonds will help anyone who was financially damaged by a fraudulent auto dealer to get the compensation they are entitled to. For this reason, any dealership who has this type of bond on file will gain a considerable amount of credibility. Many auto dealers sell more than one type of vehicle, so they may need to get additional bonds beyond their motor vehicle wholesaler bond.
The additional bond types may include: RV bonds, motorcycle dealer bonds, used vehicle bonds, and DMV bonds. The cost of the motor vehicle wholesaler bond will vary by auto dealer. The amount of the bond is the most important factor in determining overall price. Financial credentials also play a large role, in particular the credit score and past finances of the auto dealer. Auto dealers who elect to finance their bond rather than pay for it up front will find that their overall cost will be dramatically more due to finance charges. However, if using a finance company is necessary to secure the level of bond needed, it will generally be more than worth it for the wholesale auto dealership owner. When looking for reliable Motor Vehicle Wholesaler Bonds in Arizona, please visit website to find out more.
