On August 28, 2018, Missouri Senate Bill 707 will become effective, meaning many changes to requirements and restrictions are quickly approaching for those who buy and sell motor vehicles in the state. The new law affects a number of rules, including an increase to the surety bond amount, vehicle sale requirement changes, changes in licensing, and changes to inspections of vehicles bought or sold by motor vehicle dealers.
Increase to surety bond amount
One of the most significant changes is the increase of the bond amount required of Missouri motor vehicle dealers. The previously required $25,000 surety bond is now $50,000. A dealer is authorized by the Missouri Department of Revenue to buy and sell vehicles once the dealer posts a bond in the correct amount, so long as they meet the additional licensing requirements.
Additional licensing requirements mandate the presence of a signed written contract between the individual selling the car and the dealer. The vehicle must be delivered to the dealer, along with an attached power of attorney to grant the dealer permission to buy a new or replacement title for the vehicle in the owner’s name.
Are you a vehicle dealer in Missouri with questions about the bond increase?
Check out the answers to frequently asked questions for Missouri dealers for more information about increasing your bond amount and what that means for your annual premium at renewal.
Other Missouri Senate Bill 707 changes
New Rules for Dealers
SB 707 requires that dealers be easily reachable to the public, Department of Revenue, or law enforcement. Therefore, dealers are now required to publish their phone number, email address, and business hours.
Also, the number of vehicles sold is increasing from six to eight for someone to qualify as a vehicle dealer at the time of license renewal.
If the new vehicle owner wishes to obtain a new license number, they will need to contact the Department of Revenue, who will issue a new license number as well as the number of plates possessed by the dealer selling the vehicle.
“Off-premise events” such as showing, buying, or selling a vehicle will be subject to new regulations as well. Vehicle dealers may participate in up to two “off-premises events” annually. The length of these events may not exceed five days and a monetary barrier may not exist for a dealer attending an “off-premise event”. Dealers within a 10-mile distance of the event shall be notified at least 45 days prior to the event’s start date, and they must have the opportunity to participate in such an event. The notice sent to dealers should also be given to the Director of the Department of Revenue. Even if the majority of other dealers within a particular city or town choose not to participate, recreational vehicle dealers are able to participate in these events.
Inspection and Sale of Vehicles
Finally, if a dealer sells a vehicle that underwent inspection within the last 60 days prior to the sale date, the new vehicle owner may use an inspection from 90 days before the application for purposes of registration or transfer.