Auto Dealer Bond... Questions

[bayzing]

I'm seriously looking into opening my own dealership... and I would like to find out more information about getting the required bond. Specifically... How much does it cost... I've heard somewhere in the range of 1% - 2% depending on credit and other variety of factors... what are reasonable premiums? How much will this cost me over the first 12 months. In my state I'm required to get a $50,000 bond.

Also... what is the likelyhood of getting bonded considering my situation:

PROS:
- 5+ years industry experience
- Reasonably good credit score (720+)
- Highly educated (will this matter?)
- Possibly $60,000+ in home equity

CONS:
- Significant amount of debt (credit cards & student loans) offset the equity in my home.

[Admin]

I would say the current market is closer to 1-3% for most. However, those that do not qualify for a standard market can see rates as high as 15% per year!

The surety will review the following:

-Credit report: including score, late payments, public records, etc.
-Personal financials: total assets, total liabilities, liquidity, net worth, etc.
-Experience: a resume to see if you know how to run the business


From what you told me, I would venture to guess you will qualify for a standard market. You can get a free quote online at: JW Surety Bonds - Commercial Bond Applications