What is auto dealer bond?
An auto dealer surety bond is an understanding between three parties: the principal (the auto dealer), the obligee (the state requiring the bond) & the surety (the provider of the bond).
An Auto Dealer Bond ensures that the Principal will agree to state laws, rules & regulations regarding the sale of vehicles whether new or used.
Other names for auto dealer bonds:
Motor Vehicle Dealer Bond
Used Car Dealer Bond
Dismantler Bond
Franchise Bond
Breaking the rules which regulate the industry.
Taking payment for a vehicle and selling it to another person.
Failure to transfer title.
Other fraudulent activity.
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