Although the used car dealer bond cannot be more or less than the $25,000 state requirement, the premium in which the dealer pays to obtain the bond can vary from $225 per year to over $3,000 per year. The premium that each car dealer pays is based on personal credit and other determining factors. In order to obtain a quote, you must submit an application which includes providing your current credit score. More experienced dealers with great credit can pay as low as $225 per year for their surety bond, while a less experienced dealer with a lower credit score will most likely pay a higher rate. There are multiple factors that go into determining the price for a bond, so it is important to call a reputable surety bond agency such as Absolute Surety, LLC, fill out an application, and get a new quote each year. Because Absolute Surety, LLC is appointed by multiple insurance agencies, they are often able to find Florida auto dealers the best price for their bond. Absolute Surety is currently offering rates as low as $225 for a one year bond or $400 for a two year bond.
Even if your credit score has taken a hit and you are finding it difficult to get it back to where it once was, chances are Absolute Surety, LLC can still write your dealer bond and possibly even offer you financing on the premium. This will allow you to keep more cash to purchase more inventory with. Be sure to call before the April 30th deadline to allow enough time to get a quote and purchase your bond.
All Florida surety bonds are subject to credit worthiness of all applicants and subject to a state mandatory 1.3% surcharge.