Who needs New Hampshire Auto Dealer Bonds?
If you want to get or renew a motor vehicle dealer license in New Hampshire, you are required to file an auto dealer bond with the Division of Motor Vehicles (DMV). This applies to retail motor vehicle dealers operating in the state.
The bond is part of the licensing process and must be in place before your license can be approved or renewed. Dealer licenses in New Hampshire are valid for two years and must be renewed by March 31 of every even-numbered year, so the bond must remain active to keep your license in good standing.
This bond is required because it helps ensure that dealers follow state laws and operate their businesses honestly. If a dealer violates licensing rules or causes financial harm to a customer or the state, a claim can be made against the bond for compensation.
How much do New Hampshire Auto Dealer Bonds cost?
New Hampshire sets the auto dealer bond amount at $25,000 statewide.
You do not pay the full $25,000. Instead, you pay a small percentage of that amount as your annual premium. For most dealers, the cost ranges from 1% to 3% of the bond amount.
Your exact rate depends on factors such as your personal credit, financial history, industry experience, and licensing background. Dealers with strong credit generally qualify for lower rates, but there are options available for those with credit challenges as well.
How do I get a New Hampshire Auto Dealer Bond?
Getting an auto dealer bond in New Hampshire is a straightforward process.
First, complete a short bond application. The surety company will review your credit and basic financial information to determine your rate. Once approved and payment is made, the bond is issued and ready to be filed with the New Hampshire DMV as part of your dealer license application.
As part of the overall licensing process, you will also need to submit your dealer license application, pay the required license fee, provide proof of an established business location, obtain written approvals from the appropriate authorities, complete a criminal background check, provide a copy of your service agreement, and maintain publicly posted business hours of at least 37.5 hours per week.
Can I get a New Hampshire Auto Dealer Bond with bad credit?
Yes, it is possible to get an auto dealer bond in New Hampshire with less-than-perfect credit.
While your credit score does affect your rate, it does not automatically disqualify you. Many dealers with lower credit scores are still able to obtain the required bond. In these cases, the premium may be higher, but financing options and competitive programs are often available to help keep the bond affordable.
How fast can I get New Hampshire Auto Dealer Bonds?
In most cases, auto dealer bonds can be approved and issued quickly once your application is submitted and reviewed.
For applicants with standard credit and complete information, approval can often happen the same day. More complex situations may require additional review, which can add time. Once issued, the bond can be filed with the DMV so you can move forward with your license application or renewal.
Are there any local requirements?
In addition to the bond requirement, New Hampshire dealers must meet both state and local approval requirements as part of the licensing process. This includes securing written approval from the appropriate authorities and maintaining a compliant business location.
You must also meet location standards, provide proof of an established place of business, and maintain publicly posted business hours of at least 37.5 hours per week.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
