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5 Dealer Tech Tools to Have in 2023 to Boost Sales & Marketing

The dealerships you drove to in the early 2000s are not the same ones you approach today. As time has passed, dealerships have started operating differently, and the most successful ones have focused on shifting to the tune of consumers’ increasing reliance on technology. 

Today’s notable dealerships are transitioning their sales online, developing intuitive, well-designed websites, joining social media, creating digital content, and quickening their DMV processes. These changes primarily appeal to millennials, who are becoming the largest demographic of U.S. car buyers. Dealerships that want to attract this generation know that millennials don’t shop for everything in person. This demographic is not as likely to drive to a dealership lot, find a car, and haggle over price solely in face-to-face interactions. 

Millennials are tech-savvy, and the generations after them are well-acclimated to the digital world. So, if your business wants to succeed with these new types of car buyers, you must operate things differently. Instead of hinging all your success on an in-person model, it’s time to implement dealer tech. 

What is dealer tech?  

Dealer tech is short for dealership technology, which is software applications and online tools that dealerships can use for their retail operations. Many types of dealer tech tools exist and typically fall into three categories: 

  • Office and General Management: This dealer tech includes payment platforms, dealership intelligence applications, dealership management tools, and human capital management solutions. The staff members who’d benefit the most from these technologies include dealership owners, general management, CEOs, CFOs, office managers, and accounting and billing employees. 
  • Marketing and Sales: The dealer tech in this category focuses on helping dealerships enhance their sales and marketing initiatives. Some common tools are CRMs, advertising systems, social media, online content, and dealership engagement tools. The primary users of this tech include CMOs, CROs, general sales managers, sales reps, digital marketers, customer experience managers, and leasing consultants. 
  • Fixed Operations: In this category, the dealer tech ranges from mobile car care to tire management tools to service management suites. Some team members who’ll use these solutions include service directors, shop foremen, fleet managers, parts directors, logistics managers, collision center directors, service technicians, and body shop clerks.  

Having dealer tech in every category is wise, especially if you run a large operation. Ideally, you want every department to feel equipped and empowered to use technology to help your dealership grow. However, for the purposes of this article, you’ll learn about the marketing and sales tools you should incorporate into your dealership’s workflow.

Dealer tech tools for sales and marketing 

Various types of dealer tech can enhance your sales and marketing, and you’re welcome to try as many as you find beneficial. But keep in mind that biting off more than you can chew may be overwhelming, especially if your sales and marketing teams aren’t used to leaning on specific tools. 

So, below is a list of just five solutions you should implement throughout 2023 to stay relevant and appeal to most car buyers. To make things easier, adopt one to two tools per quarter to ease your team into the changes. That’ll also leave room for learning curves, which is especially important to give your employees. 

Keeping all that in mind, here are five sales and marketing dealer tech tools to start using. 

1. Social Media 

There are 4.7 billion active social media users, and guess what? That number could hit 5.8 billion in 2027. Why should that matter to you? It’s simple—if you’re not actively engaging with car buyers on social media, you’re missing a huge opportunity to attract and convert leads. 

You can find car shoppers on Facebook, Twitter, Instagram, TikTok, and Pinterest. And if you create content that’s visually appealing, engaging, and relevant to them, you’ll have no problem getting potential customers to browse your dealership’s inventory. 

2. An optimized, eye-catching website 

Google found that 92% of car buyers research online before making a purchasing decision. That means your website must be optimized for search engines to ensure it ranks and is easy to find in search results and Google Maps. Without an optimized website, people won’t organically discover your dealership and will simply click on your competitors’ sites on the first page of search engines. So, take time optimizing your website with target keywords. 

Additionally, make sure your site is intuitive and well-designed. That way, when people discover and visit it, they’ll browse instead of leaving after a few seconds. An eye-catching website should have high-quality photos, persuasive call-to-actions, incentives, updated pricing, and effective inventory filters. 

3. Website and Content Strategy 

Every brand needs great content to outperform competitors, and yours is no exception. With a majority of car buyers preferring to research online before purchasing, you need to have resources that aid in their decision-making process. 

Blog content, videos, email marketing, buying guides, testimonials, and in-depth vehicle information are valuable resources that car buyers will appreciate and utilize. Your ability to provide them will determine whether you get or miss a sale. 

4. Online DMV platform 

It’s no secret that most people don’t like the DMV. While going is a necessary evil, the DMV consistently has long lines, lengthy wait times, and many forms to find and fill out. If you want to get license plates, tags, or vehicle registration for your customers, it could take weeks as you try to gather all the necessary documents and go back and forth with DMV representatives. 

Thankfully, there’s a way to simplify things: you can use an online DMV platform to meet your customers’ DMV needs. The good news? You don’t have to build anything yourself. All you have to do is outsource your DMV-related tasks to a private DMV services company like Barry Risk Management. 

We have an online platform that allows us to help dealerships retrieve their customers’ license plates, tags, and vehicle registration. We work with dealerships all around the U.S. and gather and fill out the appropriate forms to ensure car buyers get what they need in a timely manner. That means no more long lines, wait times, or energy spent running in circles trying to get everything your customers need. When working with a private DMV services company like Barry Risk Management, you can rely on professionals who will use an online platform to make things easier and faster. 

5. A CRM System 

One of the most integral pieces of any successful sales and marketing initiative is an integrated CRM. With this dealer tech, you can capture all of your leads and track follow-up and lead engagement reports. This insight will let your sales team know which car buyers to circle back to and which resources your marketing team should create to help sales reps’ interactions go smoothly. 

However, make sure your sales team actually uses the CRM daily to log reports and customer interactions. The last thing you want to do is miss out on critical insights that could result in a sale. 

Innovate to stay keep up

Dealerships no longer have the luxury of solely relying on face-to-face interactions to close deals. With tech-savvy generations entering the car-buying market, your dealership must use sales and marketing tools to attract customers and compete with brands that are readily adopting new technology. Only then will your business be in a position to thrive long-term and consistently generate sales. 

Want to rely on an online platform for your DMV needs? Contact Barry Risk Management now at 1-888-995-TAGS(8247).

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How Dealerships Can Move This Part of Their Car Sales Online

car sales online

What used to only happen in person is now occurring online at a fast pace. Over the past few years, car dealerships have experienced an increase in online transactions, with 30% of U.S. new car sales taking place digitally in 2020.

This shift towards online purchases correlates with consumers’ recent shopping habits. Studies suggest that 59% of car buyers spend time researching vehicles online, likely a reason automotive executives expect online car sales to reign in the near future.

According to a poll conducted by Automotive News, 46% of automotive executives predict a significant increase in direct-to-consumer sales by automakers, pushing typical franchised dealerships to the side. The poll also suggests that 78% of executives think most new car sales will occur online by 2030. 

If you’re like other dealers, you’re either prepared or preparing for this major shift towards online car shopping, especially if you want to maintain a successful business. Maybe you’re creating digital ads instead of traditional ones, sprucing up your website instead of buying a new lot, and hiring a social media manager instead of another salesperson. All these steps are great and necessary if you want to compete with other car dealers online, but there’s another step in your sales process that should be digital: your DMV strategy. 

Handle Your DMV Needs Digitally 

learn how to do your car sales online.

Once you complete a car sales transaction, what happens next? You have to do the paperwork for the DMV to ensure your buyers get their tags, license plates, registration, and more. Finding the applications for these materials and filling everything out is always a hassle, and failing to do so quickly can slow down your ability to finalize transactions. 

That’s why you need to consider moving your DMV process online. Instead of compiling all of the necessary paperwork, filling it out by hand, and submitting it in person, you should make this step entirely digital. Doing so will provide multiple benefits, including the following. 

1. Improves the customer experience 

There are many reasons consumers are shopping for vehicles online. One of the biggest is that it offers a better experience. Shopping for cars online means people don’t have to plan a trip to the dealership, experience long wait times, deal with pushy salespeople, or get flustered by large crowds. Searching for cars digitally also provides a quick and easy way to look at different options, find the best prices, and customize vehicles. 

But this excellent customer experience can come toppling down if buyers have to wait a while for their tags, license plates, and registration because you’re doing things the traditional way. Handling DMV needs online ensures buyers get what they need quickly to continue having a great customer experience. 

2. Provides convenience

Another benefit of doing DMV paperwork online is that it’s convenient for you. Taking the digital route means you no longer have to suffer through long lines at the DMV, experience constant back-and-forth with representatives, or try to stay organized as you manage tons of documents. An online DMV process is smooth and hassle-free if you approach it correctly. 

3. Boosts productivity   

Do you want to increase your productivity to have more time to close deals? If so, handling DMV paperwork online can help. You can significantly cut the time it takes to gather material for the DMV by doing everything digitally. What used to take weeks could now take days. And having more time on your calendar will allow you to focus on other important tasks like finding creative ways to increase sales online. 

How to handle DMV paperwork online

If addressing your DMV needs digitally is the next step you must take as car sales shift online, it’s not hard to make this happen. In fact, all you need to do is work with a private DMV services company like Barry Risk Management. 

We handle dealers’ DMV paperwork, so they don’t have to worry about this task. And we do everything digitally. From gathering the paperwork to filling it out, everything we do happens online to ensure dealerships give their customers what they need in a timely manner and maintain a high level of productivity. 

Tons of dealerships across the nation have outsourced their DMV tasks to our team. We have over 30 years of experience in the industry and understand the DMV rules in every state. Because of that, we have the knowledge to ensure any and every dealer provides the proper material to their customers. 

So if you want to join the league of dealers who trust us with their DMV needs, reach out to our team. One of our representatives will walk you through our online process and answer any questions you may have. Afterward, we’ll start taking care of your DMV paperwork digitally so that every step of your car sales process is online, leading to a better experience for you and your customers. 

Contact us at 1-888-995-TAGS(8247) to start shifting your DMV strategy online!

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The Top Tasks to Outsource in The Car Dealership Sales Process

car dealership sales process

If you’re an auto dealer, there’s one thing you know for certain: the industry is experiencing unique challenges in the sales process. Most of these challenges aren’t easy to solve. Some even require significant shifts in how your dealership does business. However, if you want to be successful in today’s competitive environment, you need to be able to solve your organization’s most pressing sales concerns, and that can only happen if you have time to address them. 

But how can you get that time? The only way you typically can: you must outsource specific sales-related tasks to create an opportunity to handle others. This idea may sound scary initially, especially since sales are a pivotal part of your business, but don’t worry. The tasks we recommend outsourcing happen after you’ve completed a transaction, leaving the beginning of your car dealership sales process intact. 

If you’re wondering what tasks we’re referring to, we’ll get to them soon. But first, let’s dive deeper into the sales challenges you’re facing that make it necessary to outsource certain responsibilities.

Low inventory remains a top concern

The first problem your dealership may be experiencing is low inventory. With the ongoing shortage of semiconductor chips, manufacturers have had trouble producing new vehicles, and it’s left dealerships like yours in a bind. In fact, many dealers can barely get 1 million vehicles in stock when they’re typically used to having 3 million cars in inventory. 

Some dealerships are handling this problem by reducing sales incentives and increasing prices. You might even be doing the same things. However, while these responses are normal and understandable, they don’t prevent consumers from becoming frustrated during the car dealership sales process. 

Car shoppers are competing for fewer options while facing significantly higher prices. In December 2021, the average price for a new vehicle cost more than $47,000, which is $12,000 over the average price at the beginning of 2020. These high prices, along with increased competition, mean you have to educate consumers on why there’s low inventory while trying to ease their frustration to ensure you don’t permanently damage the relationship. 

Even if shoppers can’t buy a vehicle immediately, the last thing you want to do is let them walk away angry and unwilling to work with you once inventory increases and prices stabilize. So spending ample time managing consumer relationships is essential for long-term success. 

Navigating a different sales process 

navigating a new car dealership sales process

Outside of managing consumers’ emotions and low inventory, your team also has to learn a new sales process. Before the pandemic, your salespeople were primarily responsible for test-driving vehicles with walk-in customers and delivering compelling sales pitches face-to-face. But today, many customers are shopping for cars from the comfort of their homes, meaning your sales team has to shift their efforts to the digital world. 

If your dealership wants to make sales, your team has to focus on answering online requests quickly and delivering vehicles to buyers who bought their cars online. Doing this requires your salespeople to become more analytical and tech-adept than ever before. Additionally, they’ll have to navigate a new consumer journey and discern which digital touch points will allow them to make the most impact. 

The learning curve can be steep, so your sales team will need to spend sufficient time understanding it. Otherwise, your dealership could face more challenges than necessary.

Outsource tasks to address the big issues

With low inventory, consumer frustration, and a new sales process for your team to learn, you can’t afford to focus on tasks that can easily be outsourced. Instead, your full attention must be on the most significant obstacles affecting your business. So, to make time for what matters most, you should outsource the DMV responsibilities in your car dealership sales process.

These responsibilities include the paperwork you have to fill out to get a buyer’s tags, vehicle registration, license plates, and more. Tasks like these are easy for private DMV services companies. These types of organizations can gather the necessary paperwork to turn it in so that your customers get what they need in a timely manner. 

The only essential factor to consider is the DMV services company you work with—some of these organizations have minimal experience in the DMV industry. Additionally, many of them don’t know which forms to complete for certain DMV services. However, a reputable company will know all the ins and outs of getting tags, vehicle registration, license plates, and more, making it easier for you to trust outsourcing these tasks to them. 

A reputable company for your DMV Needs

If outsourcing your DMV tasks will free up your time and benefit your dealership, you don’t have to look far for a reputable company to help. In fact, our team at Barry Risk Management can step in to handle all of your DMV-related responsibilities. 

We have over 30 years of experience in the DMV industry and work with dealerships across the U.S. Even better, we do everything online, so you don’t have to visit our office to get the help you need. You can remain at your dealership to focus on increasing inventory, maintaining customer relationships, and conducting sales online. 

So, give us a call at your earliest convenience. One of our representatives will answer any questions you have and start completing the DMV paperwork for your most recent customer. 

Dial 1-888-995-TAGS(8247) to get in touch with one of our representatives at Barry Risk Management!

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Where to Find Great Auto Dealership Insurance Quotes

learn how to find auto dealership insurance quotes

Running an auto dealership is hard. Not only do you handle everyday business tasks that come with owning a company, like managing people, hitting sales goals, and marketing your services, but you also have to fulfill a responsibility that some companies never worry about: protecting your inventory. 

Without working, undamaged vehicles on your lot, you can’t make sales. And if you can’t make sales, you can’t make money, which will quickly lead to a sign that says permanently closed on your door. That’s why protecting the vehicles on your lot should be your utmost priority, so getting dealership insurance must be a non-negotiable. 

But where can you find excellent auto dealership insurance quotes? 

After all, the last thing you want is to overspend on outrageously priced policies or wait a long time to even receive coverage. So how can you get what you need quickly and for a reasonable rate? This article will provide the answers you seek. 

What is auto dealership insurance? 

Before you start looking for auto dealership insurance quotes, you need to know what you’re paying for and why it matters. This insurance is all about protecting your company’s financial interests. Achieving that requires there to be multiple policies, which is why you’ll find coverage options that safeguard everything from expensive replacement parts to your employees and customers.

With so many available options, the most important thing is to find insurance that meets your dealership’s specific needs. While some policies are great for every auto dealer to have, you may find it beneficial to get additional coverage if your needs differ from a dealership in another city or state. 

Different types of auto dealership insurance

get the best auto dealership insurance quotes

As mentioned above, there are certain types of coverage that every auto dealer should consider. These policies create a firm foundation for your company to stand on, so having them in place will help guarantee your success. Keeping that in mind, here are five types of auto dealership insurance you may want to buy. 

1. General Liability Coverage 

This insurance offers diverse protection. It includes coverage for property damage, bodily injury, libel, misleading ads, copyright infringement, slander, and more. General liability insurance also covers any settlement expenditures, legal defense costs, and medical expenses from your business operation. 

2. Errors and Omissions Coverage

As an auto dealer, you’re providing a service. Whether you’re selling new or used vehicles, part of your job is to provide professional advice to potential customers, making it crucial to have errors and omissions insurance. It’ll cover any work your company didn’t provide correctly, including omissions that could hurt your customers and missed steps or errors you made while completing a service.  

3. Business Income Coverage

Depending on the location of your company, business income insurance may be essential for your auto dealership. It covers any lost income from a natural or man-made disaster. For example, maybe you need help covering payroll expenses because a hurricane hit your car lot. In that case, business income coverage will provide what you need. 

If you live in an area prone to natural disasters—like forest fires, tornadoes, or floods—make sure you have this insurance in place. And even if you don’t live somewhere that encounters frequent natural calamities, still consider getting this coverage because you never know when something may happen. 

4. Garage Keepers Liability 

If your dealership services people’s vehicles, you need to have garage keepers liability. This coverage will cover the costs associated with any damage that your customers’ vehicles obtain while in your possession, care, control, or custody. It’ll also include coverage for vandalism, theft, collision damages, or fire damage that may happen at your dealership and affect your customers’ motor vehicles.

5. Employment Practices Liability Insurance (EPLI)

Another essential insurance policy that you should have for your dealership is one that focuses on employees. With employment practices liability insurance, you’ll have protection for things like discrimination, wrongful termination, retaliation, harassment, and other employment-related issues. 

What determines your auto dealership insurance quotes?

Now, for the fun stuff. When you’re looking for auto dealership insurance quotes, several factors will go into the price you receive. For example, here’s what you can expect to influence your rate: 

  • The location of your dealership, specifically the state it’s in
  • The size of your dealership, including the square footage, number of vehicles for sale, and overall business value 
  • The number of insurance policies you get
  • The types of coverage you purchase 
  • The number of employees you have

Once an insurance provider knows this information, they’ll give you a quote. But keep in mind that some providers will take a while to give you a price because they have complex, outdated processes. Other times, providers will give you an auto dealership insurance quote that’s inaccurate and all over the place because they don’t have enough industry experience.  

Get great insurance quotes through Barry Risk Management

If you want a quote that’s clear, accurate, and 100% reliable before you even commit, you need to go through our team at Barry Risk Management. While we specialize in getting titles, tags, and DMV-related paperwork done for dealerships, we also provide fast auto dealership insurance quotes that are rock-solid and reasonably priced. 

All you have to do is speak with one of our representatives. Our team has over 30 years of experience in the industry, so you’ll be in good hands. And once you answer a few questions, you’ll have an insurance quote and policy that you can implement within minutes. Even better, if you have additional needs—like helping your customers get titles or tags—you can chat about that during the call as well.

Barry Risk Management is your one-stop shop for multiple tasks you need to complete but don’t have the time or know-how to do on your own. So, call us today to get started. 

Ready to get an auto dealership insurance quote and more? Contact Barry Risk Management for help by dialing 1-888-995-TAGS(8247). 

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What is Dealership Insurance?

what is dealership insurance

Starting any type of business is challenging, but it’s especially difficult when your business requires you to look after employees and a large inventory. For example, perhaps you own a dealership. In this scenario, you have to consider multiple factors to set your company up for success, and one of those factors is dealership insurance.  

This piece of the puzzle is a crucial part of your business plan. Running a successful dealership doesn’t solely hinge on the sleek motor vehicles on your lot and the great salespeople on your team. If you want your dealership to thrive, you need insurance. 

But what exactly is this type of insurance, and how much does it cost? While it’s not easy to find these answers online, that doesn’t mean the answers aren’t important. In fact, you should know everything there is to know about dealership insurance before you try to get it. That way, you understand what you’re looking for and know what to expect as you search for it. 

Do you need dealership insurance? 

It’s a common misconception that buying insurance for your business is an added cost that comes with little to no benefits, but that thinking couldn’t be further from the truth. There are long-term advantages of having insurance for your dealership. With so many things out of your control, your company is always at risk and easily exposed to various financial obligations and liability costs. 

For example, what if someone breaks into your showroom and steals the most precious car in your collection? Or, what if your inventory burns because a fire happens in your stockroom? Even worse, what if you’re showing a customer around your dealership, and they slip and fall? 

All of these scenarios are ones that you can’t prevent. They can happen at any time and any point of the day, and all you can do is react appropriately. If you want to have a good reaction, you need dealership insurance. With it, you won’t get overwhelmed and discouraged because of bad events.

Which dealerships need insurance? 

Outside of the benefits of auto dealer insurance, you may be wondering if your specific dealership needs coverage. After all, there are many types of dealerships, so is insurance only applicable to a certain few? 

Honestly speaking, the answer is no. Auto dealer insurance applies to any garage-related business. For example, you can get dealership insurance if you have one of the following companies:

  • New and used car dealership
  • Motorcycle dealership
  • Motor vehicle dealership
  • Recreational vehicle dealership
  • Powersports dealership
  • Boat and heavy equipment dealership
  • Trailer dealership
  • Auto transmission repair and glass installation
  • General auto repair and service
  • Truck repair and body installation
  • Auto body shop and restoration
  • Auto detailing shops

Any of these businesses can benefit from having dealership insurance, so if you have one of these companies, don’t hesitate to get a policy. 

Types of dealership insurance 

types of dealership insurance

When you decide to get auto dealer insurance, you should seek coverage that’s personalized to your dealership. Luckily, there are many types of dealership insurance that you can choose from, and the one you move forward with should factor in the number of employees you have, the state your business is in, your dealership’s size, and your financial capability.  

1. General Liability 

This type of coverage is the foundation of all liability insurance. It offers diverse protection for auto dealers because it provides coverage for property damage, libel, copyright infringement, bodily injury, slander, misleading advertisements, and more. Additionally, general liability pays for medical expenses that rack up from business operations as well as settlement expenditures and legal costs. 

2. Workers Compensation

It should go without saying that workers’ compensation is necessary for any business. Most states in the U.S. require companies to have this type of policy because it protects you—as the employer—and your employees. 

With workers’ compensation, you’ll get coverage for lost wages and medical expenses that occur because of work-related illnesses or injuries. Additionally, you’ll receive protection if lawsuits regarding negligence ever come up. 

3. Employment Practices Liability Insurance (EPLI)

This insurance is crucial if you have employees, even if your dealership is small. Employment Practices Liability Insurance (EPLI) provides protection for employment-related incidents like wrongful termination, breach of contract, harassment, discrimination, and other work-related issues. 

4. Garage Keepers Liability 

While this policy is optional, it’s still just as important. Garage Keepers Liability helps you if your customer’s vehicle is damaged. It offers protection for theft, extreme weather, vandalism, fire damage, and collision damages that occur at your dealership. It also pays for claims while your customer’s car is in your custody, control, care, or possession. 

5. Garage Liability Insurance

This insurance is quite different than the one above, even though it’s easy to use them interchangeably. Unlike the policy mentioned above, Garage Liability Insurance provides coverage for property damage and bodily injury that happens because of an accident at your dealership. If you want to protect your business when accidents happen, then you need to get this coverage. 

6. Business income 

No business is immune to natural disasters. It doesn’t matter where your business is located—it can get caught in a bad storm. And if you want your dealership to continue operating after the natural disaster ends, you need business income insurance, which covers any lost income. 

For example, maybe you need help covering business expenses that add up during the restoration period or need assistance with payroll expenses. In these cases, business income insurance is great.

7. Errors and Omissions Insurance

At an auto dealership, you’re supposed to help customers look for new and used vehicles, which means you work in the service industry. Because you give professional advice to customers on a regular basis, errors and omissions insurance is critical. 

This type of coverage kicks in when your team doesn’t complete its work correctly. For example, if someone misses a critical step while providing a service or omits information that could harm customers, you want errors and omission insurance to protect you. 

How much does auto dealer insurance cost? 

Like most types of insurance, the cost of dealership insurance depends on a variety of factors. Consequently, it’s not easy to give you a specific rate in a blog post, but it is easy to tell you what insurance companies consider when determining your fee. 

For example, a few factors come into play, including the following: 

  • The size of your dealership (i.e., the number of vehicles for sales, the square footage, and total business value) 
  • What state your dealership is in 
  • The number of employees at your dealership 
  • The number of insurance policies you choose
  • The types of insurance policies that you purchase

If you want a specific quote for your auto dealer insurance, it’s essential to speak with an insurance company. But please keep in mind that it’s critical to contact the right business. 

Most companies will give you insurance quotes that change at any given moment. Typically, none of the quotes are reliable until you commit, and that’s why it’s important to speak with the right insurance company. 

Barry Risk Management is an excellent option if you want a rock-solid insurance quote that won’t change in the blink of an eye. Backed by a team with more than 30 years of experience, Barry Risk Management can find the right insurance policies for your dealership and give you a reasonable price that you can count on. 

Just call 1-888-995-TAGS(8247) to speak with a representative at Barry Risk Management. They’ll give you a fast and reliable quote for your dealership insurance. 

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How to Get an Auto Dealer Bond In New York

how to get an auto dealer bond in NYC

If you’re an auto dealer in New York, there are a few things that you know you need. You need a car dealer license, motor vehicles to sell, a decent-sized lot, and a handful of salespeople if you’re just starting out. 

These are obvious necessities for your business. However, there’s something else that’s just as important to have and that states even require: an auto dealer bond. 

In states like New York, you must have an auto dealer bond if you want to operate as a car dealer. But, more often than not, most people know nothing about auto dealer bonds. 

They don’t know what they are, what they cover, how much they cost, or even how to get one. And that’s why this article will clear the smoke, pull back the curtain, and demystify one of the most essential things that every auto dealer in New York needs. 

What is an auto dealer bond?

how to get an auto dealer bond to protect customers

Some people call an auto dealer bond a car bond—and honestly, both terms are correct. They each mean the same thing. Regardless of the phrase you use, this type of bond is a legally binding contract that protects customers, including everyday consumers and state or local agencies.  

This protection allows customers to take recourse when they’re exposed to fraud or misrepresentation during a business transaction. For example, maybe you decide to sell a car that has invalid tags. Whether you knowingly or unknowingly do this, your customer has the right to file a claim on your bond. 

When your customer takes this step, the business that’s backing your bond will pay the costs for your mistake. But the company will only pay up to the amount of the required bond. Then, you’ll have to reimburse the business. You don’t get to walk away scotch free. 

This series of events will occur anytime you don’t follow the applicable regulations and laws that your state has for auto dealers. And the only time you can get away with avoiding a customer’s claim is if the claim on your bond is illegitimate, meaning it’s false.  

Another thing you should keep in mind is that there are different types of auto dealer bonds. The one you choose will depend on your state’s requirements and the types of vehicles you’d like to sell. Some of the most popular bonds include: 

  • Used auto dealer bonds
  • New auto dealer bonds
  • Mobile home dealer bonds
  • Motor vehicle bond
  • Wholesale dealer bond

Each of these bonds is tailored to the type of dealership that you’ll run, so make sure you get the right one for your business. 

What does an auto dealer bond cover? 

While it’s important to know what an auto dealer bond is, you also need to know the ins-and-outs of what it covers. As previously mentioned, an auto dealer bond will protect customers who are exposed to fraud or misrepresentation during a business transaction. But what that fraud or misrepresentation looks like can vary. 

Sometimes, it can look like a deliberate mistake you’ve made, or it can look like a simple error and misunderstanding. For better context, here’s a list of scenarios in which a customer can make a claim on your bond: 

  • Selling stolen motor vehicles
  • Forgetting or avoiding to pay sales tax and fees to the state
  • Not reporting a sale
  • Committing financial fraud
  • Fraudulently representing a motor vehicle during a transaction
  • Withholding vehicle titles
  • Failing to meet warranty obligations
  • Refusing to pay for a trade-in vehicle
  • Forgetting or avoiding to pay lenders
  • Giving a check that’s returned for insufficient funds

Clearly, the list of protections that customers get from an auto dealer bond is vast. And while it might seem like you have to walk a tightrope when you have an auto dealer bond, you don’t have to do that. You just have to follow the law and handle your business responsibly. 

How much does an auto dealer bond cost? 

the costs of an auto dealer bond

As with most things, the price of an auto dealer bond will vary. What you pay in New York will depend on the state’s requirements, especially since the state handles licensing. However, three other primary factors can also influence the cost of your auto dealer bond. 

1. The amount of the bond

If the amount of your bond is significant, your costs will be higher than bonds that cover a lower amount. 

For example, if you have a $200,000 auto dealer bond, then the costs you have to pay will be higher than if you had a $10,000 bond. 

2. Your credit history 

Like it or not, your credit score plays a critical role in determining how much you pay for your auto dealer bond. 

If you have a credit score that’s 700 or higher, you’ll likely pay 1-4% of the total bond amount. If your credit score is 650 or lower, you’ll likely pay 5-20% of the total bond amount. 

3. Your history of losses  

Unfortunately, there are some bonds that have a significant number of losses. And the company backing your bond will take this factor into consideration when determining the cost of your auto dealer bond. 

Bonds with minimal historic losses will come with lower costs than ones with higher historic losses, which will come with a premium price tag. 

How do you get an auto dealer bond? 

Regardless of the costs for your auto dealer bond, you need to get one. It protects your customers, provides necessary coverage, and it’s required. But how do you get an auto dealer bond in New York? 

Luckily, the answer is simple. Use Barry Risk Management, Inc. 

While typically known for their DMV expertise, Barry Risk Management, Inc. has a parent company named Barry Risk Management. This business specializes in helping people discover and buy the best coverage for their everyday needs, including auto dealer bonds. 

With the guidance of Barry Risk Management, you can trust Barry Risk Management, Inc. to get the auto dealer bond that you need in New York. The only thing you have to do is reach out to a representative, and that agent will have the insight and knowledge to ensure they meet your business needs. 

To get your auto dealer bond, contact an agent at Barry Risk Management, Inc. today!