If you are a Motor Vehicle Dealer in Illinois, you need to apply for a license and obtain a Designated Agent Bond. Vehicle dealers are defined as a new (franchise) dealer, used car dealer (also known as auto dealer), motorcycle dealer, and trailer or mobile home dealer.
The process begins with the requirement of all first time/new dealers must attend the dealer training. Applicants are required to submit a copy of the receipt as proof of training completion.
The application for licensure can be obtained from CyberDriveIllinois.com
The application process includes:
Applicants must submit fingerprints and pass a criminal background check.
Obtain liability coverage meeting the minimum amount of $100,000 for bodily injury, $300,000 for each accident, $50,000 for property damage. Liability coverage must renew January 1st of each year.
Payment of the license and dealer plate fees.
A Deginated Agent $20,000 bond is required for the first 36 months of business (unless the dealership has made late or incomplete title and registration fees or taxes). A seperate bond is required for each dealership location at which the applicant intends to act as a new vehicle dealer.
Applicants must have a location to conduct business that is not a residence. Further, the State will inspect the proposed location before the dealer license will be approved. Zoning approval is required. If the business will be located in Chicago, a copy of the business license is required. If the propert for the business, a copy of the lease is required.
Franchise dealers must submit a copy of their franchise agreement.
The license and bond expires on December 31st of each year.
The premium that you pay for an Illinois Designated Agent Bond is dependent on credit.
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We have been underwriting surety bonds for over 35 years, and we offer bonds for individuals and businesses of every size.
Our team of experienced surety specialists and in-house underwriting authority gives us a unique advantage over other surety companies. We are able to offer competitive, low rates, quick approvals and immediate bond delivery. In most cases we can approve your application today and deliver your bond tomorrow.