In this article, we’ll walk you through everything you need to get a Wyoming car dealer license.
Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. Our expert agents are ready to assist with all your Wyoming car dealer license bond needs.
Different Types of Wyoming Vehicle Dealer Licenses
Wyoming’s Department of Transportation, Motor Vehicle Services, issues dealer licenses in four categories:
- Dealers selling new vehicles
- Dealers selling fewer than 12 used vehicles a year
- Dealers selling 12 or more used vehicles per year
- The manufacturers.
The process is much the same when applying for a license in any of these categories.
What Are the Steps in the Licensing Process?
In preparation for completing and submitting an application for a Wyoming car dealer license you will need to:
- Register your dealership with the IRS and the Wyoming Secretary of State’s Office and obtain a Wyoming sales tax number.
- Secure a permanent location for your dealership and receive zoning approval.
- Have your fingerprints taken by your local law enforcement agency.
- Purchase a $35,000 Wyoming car dealer bond.
Refer to the WYDOT checklist for a complete list of application requirements. You’ll need to gather all required supporting documents and submit them with your completed application and payment of the license fee (currently $503 for a one-year license).
Why is a Wyoming Car Dealer Bond Required?
A Wyoming car dealer bond is a dealer’s pledge to abide by all laws and regulations governing auto sales within the state. It provides protection for the state and the public against financial loss resulting from a dealer’s noncompliance with the law—as specified in the terms of the surety bond agreement.
Any violation causing a loss gives the injured party the right to file a claim for damages against the dealer’s bond.
How Are Wyoming Car Dealer Bond Claims Paid?
Only the bonds principal, otherwise known as the dealer, bears the legal obligation to pay all valid claims against a Wyoming car dealer bond. Both the bond’s “obligee” (NYDOT) requiring the bond and the “surety” (the bond’s guarantor) have no responsibility for the claims.
However, as the guarantor, the surety typically pays a valid claim on behalf of the principal and is then reimbursed by the principal. The surety has the right to take legal action against a principal who fails to repay the debt created by that advance payment.
How Much Does a Wyoming Car Dealer Bond Cost?
The annual premium cost of a Wyoming car dealer bond is calculated by multiplying the $35,000 bond amount by the premium rate; which is assigned to the principal by the surety. The premium rate is based on an assessment of the risk. This risk the surety accepts when agreeing to pay legitimate claims on behalf of the principal. The underwriters risk assessment is based largely on the principal’s creditworthiness as measured by the individual’s personal credit score.
The higher the principal’s credit score, the lower the risk to the surety, and the lower the premium rate will be:
A good credit score usually will result in a premium rate which is in the range of one to two percent. This is an annual premium between $350 and $700. Lesser credit may warrant a premium rate of three, making the annual premium $1,050 or higher.
Our surety bond professionals will get you the Wyoming car dealer bond you need at a competitive rate.