Effective August 1st, 2014, the Alabama legislature has passed a bill that will increase the used car dealer bond requirement from $10,000 to $25,000.
(PRWEB) May 22, 2014
According to LegiScan.com, effective August 1st, 2014, the Alabama legislature has passed a bill that will increase the used car dealer bond requirement from $10,000 to $25,000. The bill also requires new car dealers, dismantlers, and designated agents in Alabama to provide the same $25,000 bond.
The bill is currently awaiting the signature of the Alabama governor.
New car dealers in Alabama have always been required to provide a $25,000 surety bond.
Additionally, any Alabama car dealer that was previously “grandfathered” or exempt from providing a dealer bond will now be required to provide the $25,000 bond - if signed by the governor.
If the bill is fully enacted by the governor’s signature, the Department of Revenue will provide the new bond form required.
Since most Alabama used car dealers licenses renew in September, this could affect a majority of the auto dealers, designated agents, and dismantlers when they renew their bond this Fall.
The Alabama used car dealer bond may also be known as the Alabama motor vehicle dealer bond, auto dealer bond, MVD bond, or Alabama DMV bond.
In any case, whether the bill is signed into law by the Governor, Ashton Agency is ready to serve the auto dealers in Alabama with their dealer bond, just as they have for over 45 years. Ashton will be contacting motor vehicle dealers if the new bond form is released so they can renew their bond with the new requirements. If the new requirements are not signed into law, Ashton will still provide Alabama car dealers with their best options and lowest pricing.
Ashton Agency also offers floor planning, car warranties, and garage insurance. Let Ashton be your one stop shop for your dealership.
About Ashton Agency:
Since 1968, Ashton Agency has been providing the auto dealer industry license surety bonds nationwide for over 45 years. We have been building relationships with businesses across the country by offering simple solutions to bonding and special insurance needs. We offer a comprehensive selection of surety bonds for all 50 states at affordable rates. There are two national offices, located in the East Coast (Florida) and West Coast (Oregon).
Ashton Agency, Inc.
Phone: 800.451.4854 (East Coast)