Any suggestions for obtaining a new Iowa Dealer Bond?
I'm looking for some feedback on this. I've been in the industry for ages in every capacity from Lot tot to GM. Now I'm determined to start my own used dealership but I'm having problems getting anyone to quote me an affordable Iowa Dealer Bond. I've been to all the local agents and have heard everything from "not enough experience" to collateral concerns to my personal credit score (Divorce has an adverse effect you know). The only quote I've seen is for one year at $7,500!!!! I know the norm is around $250 to $300 so I obviously won't consider a $7500 quote.
Everything else is in place, including inventory. Any suggestions out there?
Everything else is in place, including inventory. Any suggestions out there?
Replies to This Discussion
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Permalink Reply by Dugan Anderson on -
If your state has an Independent Auto Dealers Assoc., try checking with them. If you have tried that, Iowa doesn't have an Independent Auto Dealers Assoc. or they do not have access to dealer bonds, then try the Iowa Auto Dealers Assoc (New Car Dealers). They probably cannot do business with an independent, but may be able to give you some recommendations. That's just off the top of my head, if I can think of anything else, I will send it to you.
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Permalink Reply by Robert "Bob" Scheetz on -
Thanks for the ideas, but I've already exhausted those leads. The IIADA's recommended agents were one of the first group to tell me that nearly 20 years wasn't enough experience and that I "could make a mistake resulting in a claim against the bond". Their suggestion was that I should take on a partner, which kind of defeats the purpose as far as I'm concerned. I haven't given up though. Think I'll wait out the next two traditionally slow months and shoot for 2010.
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Permalink Reply by Stephen K on -
You could try JW surety company there response is within a day or two. and they do alot of high risk Bonds They quoted me $ 2700 when I was starting my on own. Let us know how it goes. I would suggest you get done with all the requirements right now so that you are ready by 2010.
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