The Alabama legislature has passed a bill that will increase the used car dealer bond requirement from $10,000 to $25,000, effective August 1st, 2014. The bill also requires new car dealers, dismantlers, and designated agents to provide the same $25,000 bond. The bill is currently awaiting the signature of the governor.
New car dealers in Alabama have always been required to provide a $25,000 bond.
Additionally, any Alabama car dealer that was previously “grandfathered” or exempt from providing a dealer bond will now be required to provide the $25,000 bond.
Related: Miscellaneous Auto Related Bonds
Once the bill is fully enacted by the governor’s signature, the Department of Revenue will provide the new bond form required.
Since most Alabama used car dealers licenses renew in September, this will affect a majority of the auto dealers, designated agents, and dismantlers when they renew their bond this Fall.
The good news is that Ashton Agency will be ready to serve the dealers in Alabama with the new bond, just as we have for over 45 years.
As soon as the new bond form is released, we will be in touch with dealers so they can renew their bond with the new requirements!
Please call toll free (800) 451-4854, or click www.ashtonagency.com for further information.
[You can find the latest copy of the bill here: http://alisondb.legislature.state.al.us/acas/searchableinstruments/2014rs/PrintFiles/HB400-enr.pdf ]
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