The Relationship between Credit and Motor Vehicle Dealer Bonds

The auto dealership is a business niche in which a person can make good money. Obviously, one usually has to start from the bottom, but progress can be made quickly if you work hard.

When starting your new venture, there are a number of legal regulations you will need to comply with to get a license to operate. A requirement that can be annoying is the acquisition of motor vehicle dealer bonds. These bonds provide security for the state and consumers in case you are found to be out of compliance with the law or go out of business.

Motor vehicle dealer bonds are easy to get if you have good credit. Depending on your state, they can be obtained for less than $200. That being said, a person with bad credit will not be so fortuitous. One will typically not be rejected when applying, but the rates involved are going to be much higher than if you had good credit. Keep this in mind when preparing your business plan.