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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
$20,000 flat. It does not tier by inventory, sales volume, number of locations or licence class. The one thing worth knowing before you order is that this bond sits on top of your dealer bond rather than replacing it, so a Utah dealer in the self plating programme carries two bonds at once, the $20,000 self plating bond and the dealer bond that goes with the licence class, which is $75,000 for a motor vehicle dealer and $10,000 for a motorcycle, off-highway vehicle or small trailer dealer. Budget for both.
The Utah motor vehicle dealer self plating bond is a $20,000 surety bond filed with the Motor Vehicle Enforcement Division. It is a flat figure with no tiers. It is separate from and additional to the dealer bond required by Utah Code 41-3-205, which runs $75,000 for a motor vehicle dealer's licence, $75,000 for a special equipment dealer's licence, $10,000 for a motorcycle, off-highway vehicle or small trailer dealer's licence and for a crusher's licence, and $20,000 for a body shop's licence. Utah requires the surety company on a dealer bond to be licensed in Utah and to maintain a rating of at least B plus by the A.M. Best Company.
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One figure. It does not scale with how many vehicles you move, how many plates you hold, how many rooftops you run or which licence class you carry.
That makes this an unusually simple bond to price compared with the dealer bond it sits beside, which does change with your licence class.
The part that catches dealers out at renewal.
Utah Code 41-3-205 requires a corporate surety bond for the licence itself, and MVED states plainly that it is illegal to operate as a dealer without a current corporate surety dealer bond on file. That bond must remain in effect as long as the dealer, body shop or crusher is in business.
The self plating bond does not take its place. A dealer operating in the self plating programme is carrying both instruments at the same time.
So the total exposure is $20,000 plus whichever dealer bond your licence class calls for.
Under Utah Code 41-3-205:
$75,000 for a motor vehicle dealer's licence, which MVED describes as covering new and used motor vehicle and large trailer dealers.
$75,000 for a special equipment dealer's licence, on or after July 1, 2006.
$10,000 for a motorcycle, off-highway vehicle or small trailer dealer's licence, and $10,000 for a crusher's licence.
$20,000 for a body shop's licence.
A franchise store running self plating is therefore looking at $95,000 of bonding in total. A powersports dealer is looking at $30,000.
Utah Code 41-3-205 requires the surety company on a dealer bond to be licensed in Utah and to maintain a rating of at least B plus by the A.M. Best Company.
That rating floor is statutory rather than administrative, so it is not something MVED can waive. Confirm the carrier's current A.M. Best rating before you accept a quote, because a downgrade mid term is a real problem on a bond that has to stay continuously in force.
The mechanics on the dealer bond form, TC-450, tell you what MVED expects on paper and are worth matching.
The obligee is the people of the State of Utah. The company name on the bond has to match form TC-301, the Bonded Motor Vehicle Business Application, exactly. An owner signs as Principal in front of a notary, and the notary signs and seals the back of the bond. The bonding company's attorney in fact signs, or a power of attorney is attached.
Withdrawal is not immediate. The surety reserves the right to withdraw except as to liability already incurred or accrued, but no withdrawal is effective for any purpose until sixty days have elapsed from the Administrator's receipt of written notice, and the surety stays liable for anything occurring during that sixty days.
Confirm with MVED which form the self plating bond goes on, because that determines the wording your surety has to use.
Useful context for why Utah bonds this industry as hard as it does.
MVED states the dealer bond covers violations of Utah Code 41-3-301(1), which deals with certificates of title and certificates of origin, 41-3-402(1), which deals with paying off liens, and 41-3-404, which sets the claims procedure and timeline.
Title and payoff failures are the claims that actually happen in this class, which is why sureties underwrite dealer files more tightly than most licence bonds.
The licence fee is $127 for a new or used motor vehicle dealer and $51 for a new or used motorcycle, OHV or small trailer dealer. Every individual submits a standard fingerprint card completed and verified by a local law enforcement agency, with a $30 fee.
You need a site or location in Utah that complies with all local ordinances, a permanent enclosed building or structure large enough to accommodate the office of the dealership, and a sign of at least 24 square feet.
New applicants attend an eight hour orientation course. Renewals require a three hour training class each year.
Dealer plates are ordered on form TC-142 at $12 each with an initial limit of five, plus a handling fee. A dealership qualifies for five plates where three vehicles were sold in the preceding twelve months, and one more plate for every 25 vehicles sold after that. They expire at midnight each June 30 with no grace period, and a lost or stolen plate cannot be replaced until after that June 30, following written notice to MVED and to local law enforcement.
Temporary permits are obtained from MVED at any time using form TC-756, at the office, by mail, or online through Utah's Motor Vehicle Portal. They are valid for 45 days from the date the dealer issues them, and the 45 days include weekends and holidays. The original goes in the rear licence plate area or rear window with the expiration date in letters and numbers at least three quarters of an inch high, and the dealer keeps a written record of every permit it receives.
On title delivery, a dealer that issued a temporary permit has 45 days to submit the certificate of title or manufacturer's certificate of origin to the Motor Vehicle Division. Without a temporary permit, the dealer has 48 hours to deliver a negotiable title to the buyer.
Worth separating out so you are not sold a third instrument.
Utah Code 41-3-505 lets a dealer, dismantler, manufacturer, remanufacturer or transporter apply for special plates, and requires the applicant to establish to the satisfaction of the division that it complies with the security requirements of Sections 31A-22-302 and 31A-22-303. Those are the motor vehicle liability insurance provisions. It is an insurance filing.
MVED runs dealer licensing, bonding, plates and permits out of one office, and the self plating programme's own eligibility criteria, application paperwork and term are not set out in its published web material.
Call MVED at 801-297-2600 and confirm three things before you buy. Which form the self plating bond goes on. Whether your programme approval runs on its own cycle or alongside your dealer licence. And whether anything beyond the bond is outstanding on your file.
The bond itself is the easy part. Getting the form and the entity name right is what keeps the filing from bouncing.
No. It is flat. Unlike the dealer bond, which is set by licence class, the self plating bond does not scale with sales volume, inventory, number of rooftops or anything else.
No. It sits on top of it. MVED states it is illegal to operate as a dealer without a current corporate surety dealer bond on file, and that bond has to remain in effect as long as the business operates. A dealer in the self plating programme carries both instruments at once.
The $20,000 self plating bond plus your dealer bond. Utah Code 41-3-205 sets the dealer bond at $75,000 for a motor vehicle dealer's licence and for a special equipment dealer's licence, $10,000 for a motorcycle, off-highway vehicle or small trailer dealer's licence and for a crusher's licence, and $20,000 for a body shop's licence. A franchise store is looking at $95,000 of bonding in total. A powersports dealer is looking at $30,000.
Utah Code 41-3-205 requires the surety on a dealer bond to be licensed in Utah and to maintain a rating of at least B plus by the A.M. Best Company. That floor is in the statute rather than in a rule, so it is not waivable. Check the carrier's current rating before you commit, because these bonds have to stay continuously in force.
Usually a name mismatch or a missing signature. The company name on the bond has to match form TC-301, the Bonded Motor Vehicle Business Application, exactly. An owner has to sign as Principal in front of a notary, the notary signs and seals the back, and the bonding company's attorney in fact signs or a power of attorney is attached.
Not immediately. On the Utah dealer bond form the surety reserves the right to withdraw except as to liability already incurred or accrued, but no withdrawal is effective for any purpose until sixty days have elapsed from the Administrator's receipt of written notice, and the surety stays liable for anything occurring during those sixty days.
MVED states it covers violations of Utah Code 41-3-301(1) on certificates of title and certificates of origin, 41-3-402(1) on paying off liens, and 41-3-404 on the claims procedure and timeline. Title and lien payoff failures are the claims that actually get filed in this class.
No. Utah Code 41-3-505 conditions special dealer plates on the applicant establishing to the satisfaction of the division that it complies with the security requirements of Sections 31A-22-302 and 31A-22-303. Those are the motor vehicle liability insurance provisions, so it is an insurance filing rather than a third bond.
They are ordered on form TC-142 at $12 each with an initial limit of five plus a handling fee. A dealership qualifies for five where three vehicles were sold in the preceding twelve months, and one more for every 25 sold after that. They expire at midnight each June 30 with no grace period, and a lost or stolen plate cannot be replaced until after that date, following written notice to MVED and local law enforcement.
If you issued a temporary permit, you have 45 days to submit the certificate of title or manufacturer's certificate of origin to the Motor Vehicle Division. If you did not issue one, you have 48 hours to deliver a negotiable title to the buyer. Temporary permits themselves run 45 days from issue, and those 45 days include weekends and holidays.
The Motor Vehicle Enforcement Division at 801-297-2600. MVED handles dealer licensing, bonding, plates and permits from one office, so confirm which form the self plating bond goes on and whether your programme approval runs on its own cycle or alongside your dealer licence before you order anything.
You pay an annual premium rather than the $20,000. The rate is driven mainly by the owner's personal credit, with business financials coming into it for larger operations. Dealer bonds underwrite more tightly than most licence bonds because the claims that arise are title and lien payoff failures rather than paperwork slips, and if you are also placing a $75,000 dealer bond the two are usually quoted together. Rates vary enough between applicants that publishing a percentage would mislead rather than help. Get your actual number, it takes a couple of minutes.
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