car dealer bond prices expected to rise in california


in recent discussions with larry, executive director of IADAC

we discussed the need for enhanced car dealer education

for existing licensed used car dealers

in that regard here is an article written by a prominent IADAC car dealer attorney

Lawrence Miles


A recent Court of Appeal case could make it more difficult both for California auto dealers to obtain their dealer bonds, as well as collect on the bonds against other fraudulent dealers.

In Pierce v. Western Surety Co., 2012 Cal. App. LEXIS 734 (2012), the 5th District Court of Appeal held last month that a consumer could recover attorney fees on a dealer bond if the consumer could have recovered such fees in a direct action against the dealer under the Consumer Legal Remedies Act (“CLRA”).

The bond company in Pierce argued that the surety law did not authorize the payment of attorney fees, but the appeals court rejected that argument.  The Court found that consumers were entitled to have their claim satisfied under the CLRA, which includes attorney fees.

The parties to a bond dispute often agree on how to distribute the $50,000 bond.  The bond company, consumers, and DMV all have a preference in bond disputes over the claims of auto auctions, dealers, and other parties.  With the addition of consumer attorney fee claims, consumer attorneys will have little interest in trying to resolve the bond disputes, leaving licensees such as auctions and used car dealers left with less opportunity for recovery against a fraudulent dealer.  More bond cases may go to trial, as the ability of parties to stipulate to a settlement of the bond litigation becomes more problematic.

Finally the cost of obtaining a bond could rise as bond company losses rise with the obligation to pay such attorney fees.  Some bond companies may elect to get out of the business altogether in California.


About Lawrence Miles
Mr. Miles is founding attorney with The Miles Law Firm, A Professional Corporation. The firm practices civil and business law, including extensive work in the auto and aviation industries. For more information, please email Mr. Miles at or review the Firm’s website.+++++WE OFFER THE FINEST CAR DEALER EDUCATION IN CALIFORNIA





is it time to renew your car dealer license ???




some bond agents let their clients get arrested

some bond agents get arrested themselves

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go to a bond agent

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your car dealer bond

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car buyer tips for a no money down purchase


Car buyers wanting to know how to purchase a car with no money down can save a lot of hassle and money. Buying a new personal vehicle without taking any money out of one’s own pockets is full of difficulties. Most lenders and car dealerships welcome the consumers with good credit ratings and are willing to put some amounts on the table to serve as money down. Compared to the situation of the consumers willing to put money down purchasing a personal vehicle may seem almost impossible at first. Since there is a huge class of buyers unable to put any money down many lenders and dealers resort to advertisements of no money down car loans. But not all potential car buyers qualify with these lenders and dealers.

The problems of how to buy a car with no money down has become much more common than most consumers with less than perfect credit assume. The simple process of getting pre approved car loans approved can lead to auto finance that require no down payment at the time of purchase. The consumers needing such type of auto finance must become aware of the requirements needed to qualify for such car loans. Everyone does not have the cash to put money down on a new good safe and reliable car especially if the financial circumstances have become difficult. Consumers and potential car buyers need to confirm their latest credit scores before venturing out to buy a vehicle.

The how to buy a car with no money down can be quite flustering to the new consumers. The lenders and dealers usually look for a better than average credit scores that is more than 650. The new applicants for the zero down car loans mist review their credit scores and raise them to adequate levels. One way to do this is to make debt payments on time and or lower the outstanding balances significantly in a short time. The applicants with less than perfect credit applying with many lenders and dealers may cause concerns of credit misuse. These attempts may or may not lower the credit scores but will definitely reduce the chances of auto finance approval.

The how to buy a car with no money down can lead consumers to make a conscious effort at establishing good credit. The poor credit consumers can have a go for six to twelve months and achieve the required credit history. The young consumers with a weak credit history can get retail store credit accounts. They must get a secured credit card or a student credit account. Make sure the creditors report the use to all the 3 credit bureaus of America so that consumer credit is established immediately. Credit accounts should be used little at a time with timely repayment instead of maxing out the available credit in the very first month. The consumers and potential car buyers with no savings can make great use of the auto finance which requires no money down.

Several leading auto finance companies provide information on how to buy a car with no money down, and to get approved with affordable down payments. After getting the loans, the borrower should also make the loan payments on time, in order to avoid any kind of trouble later on. Managing car loan payments is very important in establishing a good credit rating.

we cater to wealthy car collectors at the #realcardealerschool


wholesale car collectors struggle to hold ownership

of their collectible vehicles with our high california sales tax, registration fees and insurance costs

many hold their collection on an ” open title ” without legal protection of registered ownership

penny wise and pound foolish

how about a legal way to hold ” open title ” collectible inventory

with legal avoidance of sales tax

with legal avoidance of registration fees

and with one fleet insurance policy


not really

just a very focused effort at wholesale dealer licensing

benefiting the wealthy car collector in a big way

we offer private car dealer license classes

for those who need privacy with their questions

and for those who prefer one on one individualized instruction

our private class fee is $ 300 per person at our location(s)

add $ 45 for our car dealer license handbook

add $ 55 for our retail forms compliance kit

we have an on-site price of $ 800.

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travel is added if the teacher must travel over 100 miles

private classes are arranged by appointment only

move your collection into your inventory as soon as you like



dlr plated tesla


sony duong can hook you up at the garden grove car dealer class


we call the dealer surety bond

a pretty pot of gold that

you must create and present to the dmv

it is a promise to three agencies of state government

the bond has a 12 month coverage period

with a three year claims period

for example:

2014 sales are covered thru 2017

by posting a bond you promise to:

always pay the dmv for fees and penalties

always pay the board of equalization its sales tax

honor all judicial orders for repayment

if you break your promise

the agency exercises your bond

the bond company makes payment to the agency

and you must make immediate repayment to the bond company

old school dealers have posted cash or savings

with a 3 year hold after you close the business

new school rents the money from the bond company

with the bond preminum based on the collective credit of the owners

wholesale only dealers with 24 sales per year or less can post a $ 10k bond

with preminums starting @ $ 300 per year

wholesale dealers above 24 sales per year or retail dealers

must post a $ 50k bond

with preminums starting at $ 850 per year

multiple year purchases are available with some discount

preminums for those with poor credit can exceed $ 5k per year with a $ 5k deposit

we suggest you contact sony at unipoint insurance services

( 714-677-0843 )

for an immediate bond quote

good luck




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can i really hold dealer plates as a wholesale auto broker ???



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tesla has its drawbacks



A California trade association complains, saying Tesla’s ads understate the price of the new Model S.

Elon Musk’s Tesla Automotive has weathered big debt, bad press and consumer resistance to electric cars. Now the company finds itself on the wrong side of its home state’s car dealers.

On Monday, the California New Car Dealers Association submitted a nine-page complaint to the state’s Department of Motor Vehicles, claiming Tesla’s advertising related to pricing is deceptive.

Tesla, of Palo Alto, is the darling of the green energy world, demonstrating to consumers that cars can be environmental and beautiful, though Tesla’s vehicles are still prohibitively costly for the average car buyer. Tesla also has garnered glowing reviews from industry publications, including Consumer Reports, which gave its new Model S nearly a perfect score during its test drive this year. Nevertheless, Tesla has faced a state-by-state battle with car dealers since it rolled out its new sedan.

“Dealers are feeling threatened by Tesla’s business model and being perhaps fearful that other electric vehicle manufacturers will say, ‘Tesla did this, we can too,’ and bypass the franchise dealer system and sell directly to the customer,” says Mike Omotoso, an automobile industry analyst with LMC Automotive, in Troy, Michigan.

Tesla falsely claims on its website that consumers can purchase a new Tesla S, which retails for around $70,000, for as little as $114 a month, after gas savings, government incentives, and various financing options, CNCDA says in its letter. (State and federal government incentives can range between $7,500 and $15,000 for fuel-efficient cars). While the organization did not estimate a correct monthly payment, it asserted that $114 a month was highly unlikely, since it comes to $25 less per month than the least expensive new car available to consumers today, the Nissan Versa.

CNCDA complained that Tesla’s advertisement did not include any of the required data about how the  monthly payments were arrived at, including down payments, finance charges, and number of payments involved, as well as qualifiers about advertised rates and gas savings.

“This is about Tesla making claims that if one of our dealers made, everyone would be up in arms and calling for an investigation,” Brian Maas, president of the New Car Dealers Association of California, of Sacramento, says. “We feel it is appropriate that Tesla, which is dealer too, has to comply with adverting laws like our members.”

Tesla was unable to respond to questions from Inc. before deadline.

CNCDA represents 1,100 new car and truck dealers in California. Generally, each state sets franchise laws for automobile sales, Omotoso says. California lets manufacturers sell their own cars directly. California’s DMV enforces dealer and manufacturer advertising regulations, Maas says.

Tesla operates somewhat like Apple does, through an independent retail network of 31 dedicated dealerships in the U.S. Other car brands, by contrast, sell through dealer franchises that sell multiple car brands simultaneously.

Other state car dealer associations have tried to prevent Tesla from selling its cars in recent months, with varying degrees of success. Texas forbids Tesla dealers to sell its cars in the state. North Carolina’s new car dealers association also tried to hamstring Tesla there, but the group had its challenge defeated by state representatives in June.

Though Tesla’s overall car sales are still small–it sold 10,650 cars through June, 2013 and is on track to sell about 20,000 through the end of the year, according to Omotoso–its strategy of selling through a direct dealership has definitely boosted sales. If it participated in the typical franchise system, it would be lumped together with traditional car brands that are cheaper and whose features the typical dealer understands better.

Tesla went public in 2010, and it has struggled for years with profitability, only eking into positive territory in May, simultaneously paying off a controversial Department of Energy loan of nearly half a billion dollars. Tesla has seen its stock price soar to about $183 from $23 three years ago.

does disruptive technology in the used car sales model employ unfair competitive advantage ??


Unfair Competition law: an overview

The law of unfair competition is primarily comprised of torts that cause an economic injury to a business through a deceptive or wrongful business practice. Unfair competition can be broken down into two broad categories. First, the term “unfair competition” is sometimes used to refer only to those torts that are meant to confuse consumers as to the source of the product. The other category, “unfair trade practices”, comprises all other forms of unfair competition.

Unfair competition does not refer to the economic harms involving monopolies and antitrust legislation. What constitutes an “unfair” act varies with the context of the business, the action being examined, and the facts of the individual case.

Two common examples of unfair competition are trademark infringement and misappropriation.  The latter involves the unauthorized use of an intangible assets not protected by trademark or copyright laws. See also Right of Publicity. Other practices that fall into the area of unfair competition include: false advertising, “bait and switch” selling tactics, unauthorized substitution of one brand of goods for another, use of confidential information by former employee to solicit customers, theft of trade secrets, breach of a restrictive covenant, trade libel, and false representation of products or services.

The law of unfair competition is mainly governed by state common law. Federal law may apply in the areas of trademarks, copyrights, and false advertising. See Trademark, Copyright, and § 1125 of the Lanham Act.

Congress established The Federal Trade Commission (FTC) in part to protect consumers from deceptive trade practices. The FTC indirectly protects competitors because some deceptive trade practices (e.g. “bait and switch tactics”) that injure consumers also injure competing businesses. The FTC regulations concerning unfair competition are found in various parts of Title 16 of the Code of Federal Regulations. If there is a conflict between federal and state law, the state law may be pre-empted.

A few states have enacted legislation dealing with specific types of unfair competition. See, e.g., Uniform Deceptive Trade Practices Act.

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