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Kentucky Motor Vehicle Dealer Bond

Price Varies / 1 year term

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How much does a Kentucky motor vehicle dealer bond cost?

Kentucky motor vehicle dealer bond costs start at $250 for the state-required 1-year term. Your exact cost will be provided after a quick application review based on the bond amount required for your dealer license type. Apply online now to get your free, personal Kentucky auto dealer bond quote! 

How do you get a Kentucky auto dealer bond?

You can apply for your Kentucky auto dealer bond online 24/7 through our safe and secure application portal. Simply provide the following information as required by the Kentucky Motor Vehicle Commission.

  • dealer/dealership name
  • business location address
  • bond amount required by the MVC
  • license type
  • dealer license number, if available

Once your order is processed, you'll receive your official Kentucky auto dealer surety bond by email.

How fast can I get a motor vehicle dealer bond?

Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver your Kentucky motor vehicle dealer bond faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed bond delivery.

If you have questions about Kentucky auto dealer bonds or your application, call 1 (800) 308-4358 to speak with a friendly surety expert. We're here to guide you through the Kentucky dealer bond process so you can get back to running your business.

Bond Type
$25,000-$100,000Motor Vehicle Dealer Bond

What is a Kentucky auto dealer bond?

Kentucky Revised Statutes Chapter 190.030 requires individuals licensed as a new, used, motorcycle, automotive mobility, or motor vehicle leasing dealer to file and maintain a surety bond if the state determines they don't meet certain financial qualifications. The bond form is officially titled the “Motor Vehicle Dealer License Bond” and specifically protects the state and any parties who suffer financial damage from claims and fines resulting from licensees who commit fraud or other dealer noncompliance.

Why does Kentucky require motor vehicle dealers to get a surety bond?

By filing this bond, a dealer agrees to operate their business according to laws outlined in the Kentucky Revised Statutes. If a dealer fails to do so, the issuing surety company will pay valid claims up to the full bond amount. The bonded dealer must then reimburse the surety company.

Who regulates licensing for motor vehicle dealers?

The Kentucky Motor Vehicle Commission enforces the state's motor vehicle dealer license requirements and reviews license applications. If you have questions about your Kentucky surety bond or the status of your license application, the MVC advises you call 1 (502) 573-1000.

How does the Kentucky Motor Vehicle Commission determine my bond amount?

If you cannot meet certain financial qualifications, Kentucky Revised Statutes require your bond amount be calculated as the difference between the unencumbered cash and unencumbered motor vehicle inventory. If you need help determining your exact required bond amount, contact the Kentucky MVC at 1 (502) 573-1000 before purchasing your bond. 

How do Kentucky auto dealers file your bond?

If the Kentucky Motor Vehicle Commission requires you to have a bond due to a lack of financial verification, you'll need to file your official bond with them directly after purchasing it. 

Motor Vehicle Commission
200 Mero Street 
3rd Floor West
Frankfort, Kentucky 40601

How do I update or change my vehicle dealer bond form? 

If the Kentucky MVC requires you to make any changes to your bond documentation, contact your surety provider. If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change.

The most common changes for this bond include:

  • dealer/dealership name
  • business location address
  • bond amount required by the MVC
  • license type

How do you renew your Kentucky auto dealer bond?

You should renew your Kentucky surety bond before its current 1-year term expires. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be emailed to you to keep your bond active for your next dealer license term. 

What are the different auto dealer business license types?

The Kentucky auto dealer bond covers the following dealer license types when required at the discretion of the Kentucky Motor Vehicle Commission.

  • New Motor Vehicle Dealer: holds a valid sales and service contract from a vehicle manufacturer, wholesaler, or distributor
  • Used Motor Vehicle Dealer: sells used motor vehicles (excludes those who dismantle, salvage, or rebuild vehicles for parts)
  • Restricted Motor Vehicle Dealer: exclusively sells specialized vehicles including, but not limited to, funeral coaches and emergency vehicles
  • Motorcycle Dealer: exclusively sells motorcycles

How do I get a Kentucky dealer license? 

To apply for your Kentucky dealer license, complete the following steps.

  1. Provide evidence of an established place of business with a display lot/customer parking area. 
  2. Purchase a certificate of insurance with liability coverage in the amount of $250,000 per person; $500,000 per occurrence; and $250,000 for property damage.
  3. Establish a business name that clearly identifies you as a motor vehicle dealer.
  4. Hire licensed sales personnel.
  5. Submit a completed application.
  6. Submit proof of payment for the $200 dealer license fee, $175 application fee, and $25 criminal background check fee for each owner. Checks should be made payable to the “Kentucky State Treasurer."

All applications must be received by the Motor Vehicle Commission 10 business days before the next scheduled commission meeting. They must be mailed to the following address.

Motor Vehicle Commission
200 Mero Street, 3rd Floor 
Frankfort, Kentucky 40601

What can dealers do to avoid claims against the Kentucky auto dealer bond?

Dealers can avoid claims filed against their bond by operating their dealerships according to laws outlined in the Kentucky Revised Statutes.

Call 1 (800) 308-4358 to talk with a Surety Expert