What bond amount applies to wholesale-only dealers selling fewer than 25 cars per year?

For wholesale-only dealers selling fewer than 25 cars per year, the correct bond amount is a $10,000 surety bond. This requirement is designed to ensure that the dealer operates in compliance with state regulations and protects consumers and other businesses from potential losses due to the dealer's failure to fulfill their obligations.

The bond acts as a financial guarantee that the dealer will adhere to proper business practices and comply with applicable laws and regulations. If the dealer fails to meet these obligations, claims can be made against the bond to recover losses.

The specific amount of $10,000 is established based on the average scale of operations for smaller dealers who engage in the wholesale market. It reflects a balance between ensuring adequate protection for consumers and the financial burden placed on smaller operations. In contrast, higher bond amounts apply to dealers with larger scales of operation, which reflects their increased responsibility and potential risk.