every california licensed used car dealer must present a dealer bond to the dmv

we call the dealer surety bond

a pretty pot of gold that

you must create and present to the dmv

it is a promise to three agencies of state government

the bond has a 12 month coverage period

with a three year claims period

for example:

2017 sales are covered thru 2020

by posting a bond you promise to:

always pay the dmv for fees and penalties

always pay the board of equalization its sales tax

honor all judicial orders for repayment

if you break your promise

the agency exercises your bond

the bond company makes payment to the agency

and you must make immediate repayment to the bond company

old school dealers have posted cash or savings

with a 3 year hold after you close the business

new school rents the money from the bond company

with the bond cost based on the collective credit of the owners

wholesale only dealers with 24 sales per year or less can post a $ 10k bond

with fees starting @ $ 100 per year

wholesale dealers above 24 sales per year or retail dealers

must post a $ 50k bond

with fees starting at $ 425 per year

multiple year purchases are available with some discount

fees for those with poor credit can exceed $ 5k per year with a $ 5k deposit

we suggest you contact sony at unipoint insurance services

( 714-677-0843 )

for an immediate bond quote

good luck

thx

charlotte

800-901-5950

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