Zero2Turbo
    Facebook Twitter Instagram
    Facebook Twitter Instagram RSS
    Zero2Turbo
    • Home
    • Contact
    • Videos
      Featured

      Koenigsegg Jesko Smashes Gotland Ring Lap Record at 90 Percent Of Capability

      By Zero2TurboNovember 28, 2023
      Recent

      Koenigsegg Jesko Smashes Gotland Ring Lap Record at 90 Percent Of Capability

      November 28, 2023

      A McLaren F1 Windscreen Costs Over R600,000 To Replace

      November 20, 2023

      Rimac Nevera Grabs World Record For Fastest Speed in Reverse

      November 7, 2023
    • South Africa
    • Zero2Turbo Telegram
    Zero2Turbo
    Home»Zero2Turbo»Auto Dealers With Bad Credit: Tips For Getting Bonded
    Zero2Turbo

    Auto Dealers With Bad Credit: Tips For Getting Bonded

    By Zero2TurboJune 17, 2018Updated:June 20, 2018No Comments
    Facebook Email Twitter LinkedIn Telegram WhatsApp
    Share
    Facebook Email Twitter LinkedIn WhatsApp Telegram

    Your personal credit history and score has far-reaching implications, beyond simply getting approved for new credit accounts. Employers, insurance companies, prospective creditors, and surety bond agencies all look to your credit report for indications of your level of financial responsibility. For auto dealers, whether new to the business or old pros, must consider their personal credit as a component of securing an auto dealer bond.

    State regulations require auto dealers to be bonded for the protection of consumers, and unlike an insurance policy for legal liability, a surety bond is not a transfer of risk to the bonding agency. It is a promise to pay by the agency for any claims made against the auto dealer, but any money paid for a claim must be paid back over time. This is why personal credit becomes an issue when applying for a new auto dealer bond. Without strong credit, there is still an opportunity to get bonded; it just requires some additional steps along the way.

    Clean up Personal Credit

    The best course of action if you have bad credit as an auto dealer is to work toward improving your credit profile in any way possible. The most significant negative marks on your credit report may include:

    • Missing payments on credit accounts
    • Filing for bankruptcy
    • Having a home go into foreclosure
    • Having a state or federal tax lien
    • Accounts in collections

    In addition to these common blunders, your personal credit may take a hit due to excessive use of available credit (i.e., maxing out credit card limits), or credit reporting errors that are no fault of your own. However, each of these potentially damaging entries on your credit report can be addressed.

    Reviewing your credit is the first step in correcting errors and working toward improving your overall credit score. You have the opportunity to retrieve your credit report for free once per year from the three major credit bureaus, either by requesting it in writing or through a brief online form. Once you have received your credit report, first look for errors like inaccurate account balances, missing payment entries that are not correct, or other issues that can be fixed easily. Any erroneous details in your credit can be disputed, and if found to be inaccurate, they will be removed.

    Fixing errors is the easy part; working to improve your credit standing takes more effort. Paying down account balances to a reasonable amount, to 30% or below of your available credit, is beneficial. Working to resolve bigger issues like tax liens, collections accounts, and delinquent payments also has a positive impact on your credit score. Take these steps before applying for your next auto dealer bond to ensure you can get through the application process without frustration.

    Work with the Right Surety Agency

    Not all surety agencies are created equal when it comes to auto dealers with bad credit. Those that work with a large pool of bond providers will benefit auto dealers concerned with personal credit issues. This is because having access to more available bonds means there is likely an option for riskier applicants. However, bond pricing may be higher for those with poor credit histories or scores. It is important to recognize this additional expense, but also know that as credit improves, your surety agency may be able to get you a more affordable auto dealer bond in the future.

    Avoid Claims

    Even though personal credit is a major factor in securing an auto dealer bond, surety agencies also look to other components of the business, including previous claims history. For auto dealers who have been in operation for some time, working to avoid official claims against a bond is necessary to ensure bond approval in the future. Auto dealers who are starting their dealership may benefit from expert guidance from their surety company or other professionals in the space as it relates to potential claims. Customer complaints should be handled promptly and with special care to help sidestep a claim from going through. If the issue can be resolved outside the claims process, such as through a settlement or other agreement, this helps to improve an auto dealer’s standing even when credit is an issue.

    Get Professional Help

    Finally, if you have bad credit as an auto dealer and feel overwhelmed with the bonding process, it may be in your best interest to seek out professional assistance. A credit repair organization, a business or financial consultant, or a legal professional may be able to provide actionable advice not only for improving credit standing but also in the realm of sound business practices. Remember that surety agencies review your total picture, not just your credit information, when considering a bond application. Getting the right help before your next auto dealer bond application is due is a step in the right direction if you don’t feel confident in resolving issues on your own.

    Author:

    Eric Weisbrot is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry under several different roles within the company, he is also a contributing author to the surety bond blog.

    Share. Facebook Email Twitter LinkedIn WhatsApp Telegram
    Previous ArticleAudi RS4 Avant Actually Packs 460 HP (343 kW)
    Next Article The New BMW 8 Series Coupe Finally Revealed With Superb Styling

    Related Posts

    Koenigsegg Jesko Smashes Gotland Ring Lap Record at 90 Percent Of Capability

    November 28, 2023

    Rare BMW 3.0 CSL Sells For Over R20 Million at Auction

    November 27, 2023

    Third Generation Porsche Panamera Revealed with Pricing for South Africa

    November 27, 2023

    827 hp (616 kW) Pagani Imola Roadster Revealed

    November 23, 2023

    Lewis Hamilton’s F1-Winning 2013 Car Fetches R350 Million

    November 22, 2023

    HWA Developing R14 Million Mercedes-Benz 190E Evo II Restomod

    November 22, 2023

    Leave A Reply Cancel Reply

    Popular Posts
    • Millions in Supercars go for a swim… OUCH!
    • How to Keep Your Car Looking Like New
    • Could This Be The Lamborghini Aventador Performante Testing?
    • Startech Are Actually Building This Ridiculous Range Rover Pickup
    • The Future of Motoring

    Latest Instagram Photos
    • Looks like the new Mercedes-AMG S 63 E PERFORMANCE was spotted testing in South Africa 🇿🇦

That start-up sounds pretty damn promising!

This thing packs a whopping 791 hp (590 kW) and 1,430 Nm of torque.

📌 Graskop, Mpumalanga

🎥 @guylin_
    • Look what’s arrived in South Africa 🇿🇦 

Nothing confirmed by Toyota SA as of yet but here is the 224 kW GR Corolla!

Image source: @average_midship 

#ExoticSpotSA #Zero2Turbo #SouthAfrica #Toyota #GRCorolla
    • We waited a fair bit for the Tiguan R to arrive but that means it has been given enough thought and executed with the sort of German precision that makes us happy to have waited.

As fast SUVs go it’s a cracker, and with a price tag starting from R1,014,900 it is actually decent value in the segment.

It’s fun, aggressive when you want it to be and remarkably civilised when you don’t. Cars like this rarely make sense, but the Tiguan R is one case where that argument starts to change one's mind.

We cannot wait to drive the matching Golf next week!

#ExoticSpotSA #Zero2Turbo #SouthAfrica #Z2TDriven #VolkswagenTiguanR #TiguanR #VWTiguanR
    • The very first SA-spec BMW M2 snapped at BMW HQ in Midrand.

Zandvoort Blue would not be our choice but the looks have certainly grown on us. What about all of you?

Shots via @projectthart 

#ExoticSpotSA #Zero2Turbo #SouthAfrica #BMWM2 #NewM2 #ZandvoortBlue
    • If you’re expecting a faster, angrier and more focused version of the original 86, you’re going to be happy with this car.

Toyota finally gave the 86 more power. It’s not take-your-breath-away power, but again, it’s not made to win drag races. If you want more power, get a Supra.

Sure it is a bit more pricey this time around but it is a no-regrets kind of car that you will enjoy just as much today as 10 years from now.

Long live the manual transmission, especially when it’s packaged within something as fun as the Toyota GR86.

#ExoticSpotSA #Zero2Turbo #SouthAfrica #Z2TDriven #ToyotaGR86 #GR86 #Anime #InitialD
    • Stunning Jaguar F-Type Project 7 spotted in sunny Cape Town yesterday by @ryan_6r 😎

Just 5 of these made their way into SA making this quite a rare sighting!

#ExoticSpotSA #Zero2Turbo #SouthAfrica #Jaguar #FTypeProject7 #Project7 #JaguarFType #CapeTown

    Follow Us

    Facebook Twitter Instagram YouTube RSS
    Designed by Zero2Turbo.

    Type above and press Enter to search. Press Esc to cancel.