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Kentucky Motor Vehicle Dealer Bond

Price Varies / 1 year term


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How much does an auto dealer bond cost in Kentucky?

The Kentucky Motor Vehicle Commission requires motor vehicle dealers to post a surety bond. The required bond amount is usually determined by the annual volume of vehicles sold, but it cannot be in an amount less than $15,000. Applicants should verify their required bond amount with the state prior to bonding.

The price you’ll pay for your bond depends on your required bond amount and a review of your personal credit report.

Because the amount and price of this bond vary so much, our experts recommend calling 1 (800) 308-4358 or submitting a bond request to receive a free, personalized surety bond quote.

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

Ready to get bonded? The SuretyBonds.com experts are here to help. Give us a call at 1 (800) 308-4358, or submit a bond request now!

Why do I need this bond?

Kentucky dealer bonds are put in place to ensure that principals (auto dealers) comply with all ordinances, rules and regulations of the state and industry. Because these bonds are written on Kentucky’s generic surety bond form, the specific terms of the bond aren’t listed. Instead, applicants should turn to the Kentucky Motor Vehicle Commission for more information.

Specifically, this bond protects the state and individual parties who suffer financial losses as a result of a dealer’s unethical or unlawful actions while on the job.

Our team of surety specialists works hard to get you bonded quickly and for the best rate available. Contact SuretyBonds.com to get started!

What’s the fine print?

Kentucky motor vehicle dealer bonds remain in full force and effect unless violated by the principal or canceled by the surety. Bonds can be issued for a definite term or an indefinite term, which will be indicated on the bond form.

Auto dealer bonds in Kentucky can be continued with a continuation certificate signed by the surety. The surety can cancel the bond at any time by giving written notice of cancellation to the obligee 30 days prior to the effective termination date.

All bonds in Kentucky are subject to a state surcharge of 1.8%.

How to become a motor vehicle dealer in Kentucky

To obtain a Kentucky dealer license, applicants must take the following steps:

  1. Submit a completed application for a motor vehicle dealer license (Form TC 98-1).
  2. Submit proof of city zoning authority approval.
  3. Provide evidence of an established place of business with a display lot and customer parking area.
    Various photographs and sketches of the premises and lot sign will need to be submitted.
    The business sign must be at least nine inches tall and visible from the nearest road.
  4. 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.
  5. Establish a business name that clearly identifies the business as a motor vehicle dealer.
  6. Hire licensed sales personnel.
  7. Submit proof of payment for the $100 dealer license fee, $40 application fee, and $20 per criminal background check necessary.

All applications must be sent to the Motor Vehicle Commission 10 days prior to the next scheduled commission meeting. The commission might require additional information to accompany the application, depending on the type of dealer license being applied for.

More information regarding licensing can be accessed via the “Additional Resources” section of this page.

We can get you a free quote on a Kentucky auto dealer bond within one business day of receiving your application. Apply for a free bond quote today!

Ready to get started?

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