Alaska Car Dealer Bond

Alaska Car Dealer Bond

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An Alaska car dealer bond, also known as an Alaska Motor Vehicle Dealer Bond, is a type of surety bond required by the Alaska Division of Motor Vehicles for individuals or businesses who want to become licensed motor vehicle dealers in the state. The bond provides a financial guarantee that the dealer will comply with state laws and regulations governing the sale of motor vehicles, and will pay any necessary taxes and fees to the state. If the dealer fails to meet these obligations, the bond can be used to compensate any affected parties, such as customers or the state government. The required bond amount may vary depending on the specific license and dealership type, and must be obtained from a licensed surety bond provider.

What is an Alaska Dealer Bond? 

Alaska Dealer Bonds are required by The Department of Revenue to obtain your Dealer license. The Bond amount is set at $50,000 for New and Used Vehicles and $25,000 for Motorcycle dealers. The Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.

Different parts of a Dealer Bond:

The Dealer bond is required when The Obligee (Department of Revenue) is the entity requiring you to get the bond.  There are 3 parts to a surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.


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Alaska Dealer Bond Requirements and Information:

To register as a dealership or as a buyer's agent in the State of Alaska, you must submit the following to us: An original, notarized surety bond of $50,000. Please Note: The surety bond must be in force at all times while you are doing business in Alaska. Please Note: It is only $25,000 for a dealer who sells only motorcycles. Please Note: Boat dealers are not required to be bonded. An Application for Registration as a dealer in Motor Vehicles or buyer's agent. Please Note: The signature of the person signing the application must be notarized. There is also a $50.00 registration fee.

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