Kentucky Motor Vehicle Dealer Bond Overview
- Purpose: To protect the public from losses resulting from a dealer's wrongdoing
- Who Needs It: Any person who sells new or used motor vehicles or motorcycles in Kentucky
- Regulating Body: The Kentucky Motor Vehicle Commission
- Bond Amount: $25,000–$100,000
- Minimum Price: 1% of the bond amount, credit-based
What Is a Kentucky Motor Vehicle Dealer Bond?
A Kentucky motor vehicle dealer (MVD) bond protects the state and any parties who suffer financial damage from claims and fines if a dealer is fraudulent or breaks licensing laws.
Bond Requirements for Kentucky Auto Dealers
In Kentucky, car dealer bond requirements are up to the discretion of the Commission based on financial responsibility. If you need to file a bond or other financial securities, you’ll be notified. There is a $25,000 minimum and $100,000 maximum for bond coverage amounts.
How Much Do Vehicle Dealer Bonds Cost in Kentucky?
Kentucky dealer bonds cost a small percentage of the total coverage amount, typically 1–10%. For example, rates start at just $250 for $25,000 coverage. Confirm your exact bond requirement with the Commission, then apply for a free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
A motor vehicle dealer bond creates a financial contract between three parties.
- Principal: The auto dealer filing the bond
- Obligee: The Kentucky Motor Vehicle Commission
- Surety: The provider issuing the bond
By filing the bond, you promise to uphold Kentucky Revised Statutes - Chapter 190. The bond form requires you to repay fines, penalties or fees owed to clients or the state and submit accurate reports.
How Do I Get a Car Dealership Bond in Kentucky?
You can apply for your bond online 24/7 through our safe and secure portal. Simply provide the following information:
- Dealer/dealership name
- Business location address
- Bond amount required by the MVC
- License type
- Dealer license number, if available
We’ll follow up with your quote within one business or less. You can pay online anytime or call to purchase over the phone. Once you checkout, we’ll email your official Kentucky auto dealer bond form.
Can I Get Bonded With Bad Credit?
Having lower personal credit as a vehicle dealer 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.
How Do I Renew My Bond?
You’ll need to renew your dealer bond each year. We’ll provide helpful reminders before your bond expires. All you need to do is pay the renewal invoices and your bond will stay active for another year.
