Kansas Vehicle Dealer Bond Overview
- Purpose: To protect the public from potential loss due to license violations
- Who Needs It: Any person who sells motor vehicles in Kansas
- Regulating Body: The Kansas Department of Revenue, Division of Vehicles
- Bond Amount: $50,000
- Minimum Price: $350; credit-based
What Is a Kansas Vehicle Dealer Bond?
A Kansas auto dealer surety bond is a financial guarantee that licensed dealers will follow state laws and regulations. It protects both the state and dealership customers from harm if a dealer is fraudulent or insolvent.
Who Needs This Bond?
Any person who purchases a vehicle to sell it for a profit or who sells five or more vehicles per year must have a dealer license and bond in Kansas.
Vehicle salespersons and manufactured home dealers need a separate license and there is no bond requirement.
How Much Do Vehicle Dealer Bonds Cost in Kansas?
$50,000 Kansas auto dealer bond costs start at $350 for the one-year term. We’ll provide your exact quote after a quick application review. Apply for your free, no-obligation quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Kansas Dealer Bond Work?
A motor vehicle dealer bond creates a financial contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The auto dealer filing the bond |
| 2) Obligee | The Kansas Department of Revenue, Division of Vehicles |
| 3) Surety | The issuing surety provider |
By filing this bond, you agree to comply with Kansas Statutes Annotated, Chapter 8, Article 24. If you don’t and a vehicle buyer or seller is harmed, the bond offers protection.
The surety will pay valid claims up to the full $50,000 bond amount, which the bonded car dealer must then reimburse.
How Do I Get a Vehicle Dealer Bond in Kansas?
You can apply for your free Kansas car dealer bond online. You'll need to provide the following information:
- Dealer/dealership name
- Dealer/dealership main office location
- Business structure
- Dealer license number, if available
- SSN for a soft credit preview
We’ll email your quote within one business day or less. Once you checkout, we’ll ship your original bond form for you to sign and mail to the address below.
Kansas Department of Revenue
Division of Vehicles
Dealer Licensing Bureau
P.O. Box 2369
Topeka, KS 66601-2369
Can I Get Bonded With Bad Credit?
Bad credit may impact your premium rate, but it doesn’t always disqualify you from getting a bond. We work with a variety of markets to approve 99% of applicants. Apply to see if you qualify.
How Do I Renew My Bond?
These bonds are continuous, which means they stay active as long as you continue to renew. We’ll send renewal reminders. All you need to do is pay the invoice before it expires and your dealer bond will be active for another year.
How to Get an Auto Dealer License in Kansas
The Kansas Department of Revenue — Division of Vehicles enforces licensing regulations for auto dealers. To become a licensed auto dealer in Kansas, complete these steps.
- Establish a permanent business location with a name that matches your sales tax registration number.
- Get a zoning certification from the county or city zoning office.
- Buy insurance coverage for the business property and inventory.
- Provide a Certificate of Tax Clearance.
- Provide three credit references.
- Complete the Kansas Article of Incorporation form.
- Purchase and file a $50,000 Kansas auto dealer bond.
- Fill out your Kansas auto dealer license application.
- Submit all documents by mail and pay fees.
Allow six to eight weeks for application processing. Once approved, you’ll need to complete a training class.
If you have questions, call the Dealer Licensing Bureau at 1(785)296-3621 or email [email protected].
