Who needs Hawaii Auto Dealer Bonds?
Anyone applying for or renewing a motor vehicle dealer license in Hawaii must obtain an auto dealer bond. This includes new car dealers, used car dealers, and certain motorcycle or scooter dealers, depending on their license type and sales volume.
The bond is required by the Motor Vehicle Industry Licensing Board as part of the licensing process. It helps ensure that dealers operate their businesses according to Hawaii’s rules and regulations. Without the required bond in place, the state will not issue or renew a dealer license.
How much do Hawaii Auto Dealer Bonds cost?
Hawaii sets different bond amounts based on the type of dealer and the number of vehicles sold each month. Statewide bond amounts range from $10,000 to $200,000, depending on your license classification and sales volume.
However, you do not pay the full bond amount. Instead, you pay a small percentage of that amount as your premium. Most auto dealer bonds in Hawaii cost between 1% and 3% of the required bond amount. Applicants with strong credit and financial history typically qualify for lower rates, while others may pay a higher percentage based on their credit and background.
During the bonding process, factors such as personal credit, financial statements, industry experience, and licensing history are reviewed to determine your rate.
How do I get a Hawaii Auto Dealer Bond?
Getting your Hawaii auto dealer bond is a straightforward process:
First, confirm the bond amount required for your specific dealer license type. The bond is part of the full dealer license application, which also includes submitting an application packet, photographs of your business location and display area, proof of a lease or ownership, financial information, and payment of licensing fees.
To secure the bond, you complete a short bond application with a surety provider. Once approved and payment is made, the bond is issued for you to file with the state as part of your licensing paperwork.
Your dealer license must be renewed every even-numbered year by June 30, and your bond must remain active for your license to stay in good standing.
Can I get a Hawaii Auto Dealer Bond with bad credit?
Yes. While applicants with good credit generally receive the lowest rates, having less-than-perfect credit does not automatically prevent you from getting a Hawaii auto dealer bond.
Surety companies consider multiple factors beyond just your credit score. Even if you have past financial challenges, bonding options are typically available, though your premium may be higher.
How fast can I get Hawaii Auto Dealer Bonds?
In many cases, auto dealer bonds can be approved quickly once a completed application is submitted. Applicants with strong credit profiles are often approved the same day, while more complex applications may take a little longer if additional information is needed.
Starting the process early helps avoid delays in your licensing approval or renewal.
Are there any local requirements?
The auto dealer bond is required statewide in Hawaii and is regulated by the Motor Vehicle Industry Licensing Board. Bond amounts vary based on your dealer type and sales volume, but the requirement applies across the state.
As part of the licensing process, you must submit a complete application packet that includes documentation about your business location, financial information, and the required bond before your license can be issued.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
