One of the most complex and overwhelming parts of getting or keeping your DMV license relates to car dealer bonds. The reason is usually due to the dealer’s credit or citizenship status.
There are plenty of moving parts for a Used Car Dealer regardless of how many years they have been in business or if they are still getting licensed.
Your Car Dealer Bond (aka Your Car Dealer Bond | Cal-Surety) offers a variety of additional services to assist in every step of the way.
If you live and die by either of these 3 statements, then chances are you are a California Used Car Dealer and need to keep reading. Ready…
- hurry up and get the show on the road; or
- time is money; or
- I never pay retail!
So how are you going to save money…glad you asked!
Here are 3 great tips that every California used car dealer can use…
Car Dealer Bond Education:
- Start checking your credit 6-7 months before your surety bond.
- Start gathering ancillary information that could reduce your dealer bond rate.
- It’s becoming more common for a surety bond market to heavily surcharge for having a high revolving debt ratio.
- This means paying down your credit card balances about 4 months increase the limits on those credit lines. Simply put, the percentage of how much credit you have available vs. how much you use is becoming a huge driver in car dealer bond rates.
Used Car Dealer Insurance Education:
- Don’t fall for the trickery played by the insurance companies. (Money Saving Tip.)
- Pay attention to sub-limits and exclusions, not just the deductibles.
- Order your loss history!
- Order loss runs from all carriers you have had in the past 3 years.
- You can order these through your insurance agent if you had the same agent for those years.
- How to leverage your used car dealer insurance policy to increase car sales! (Money Making Tip.)
- If the entire industry doesn’t carry used car dealer insurance, then you having that protection in place improves your market position.
Used Car Dealer Insurance Protection…
Here’s a little-known fact, insurance is not mandatory in every state. If you are in a state where the DMV mandates insurance, you likely know it. Insurance is not required in order to obtain a retail dealer license in states like California! The same goes for a wholesale dealer license with or without an auto broker endorsement. A surety bond or car dealer bond is required to get or keep your license but that’s a different topic.
As a Car Dealer that’s always looking to save a buck, why would you need insurance if the DMV doesn’t mandate it? Again, glad you asked – here are just a few reasons…
- You need to sleep at night for starters!
- Used Car Dealer Insurance can be tailored to suit your risk tolerance and price sensitivity.
- Dealer Insurance allows for a simple monthly payment schedule, unlike the bond that is typically due in full.
- All flooring companies used to purchase inventory will mandate insurance to protect their investment.
You’d be surprised how inexpensive it can be to buy insurance your car dealer business. Click here to get more info on the cost of dealer insurance NOW!
