Minnesota Motor Vehicle Dealer Bond Overview
- Purpose: To protect dealership consumers from financial harm
- Who Needs It: All motor vehicle dealers in Minnesota
- Regulating Body: The Minnesota Department of Public Safety, Driver & Vehicle Services
- Bond Amount: $50,000 for standard dealers, $5,000 for small motor vehicles
- Minimum Price: $100 for $5,000 bond, $225 for $50,000 coverage
What Is a Minnesota Motor Vehicle Dealer Bond?
A Minnesota motor vehicle dealer bond is a financial guarantee that dealers will operate legally. It serves as a safety net for clients and the state if a dealer causes financial harm.
How Much Do Vehicle Dealer Bonds Cost in Minnesota?
Minnesota auto dealer surety bond costs vary depending on the license type. The $5,000 small vehicle bond costs a $100 flat rate per year.
The standard $50,000 motor vehicle dealer bond starts at $375. Rates vary based on credit score. Apply to get your free, no-obligation quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Minnesota Motor Vehicle Dealer Bond Work?
A motor vehicle dealer bond creates a financial contract between three parties.
- Principal: You, the motor vehicle dealer
- Obligee: The Minnesota Department of Public Safety, Driver & Vehicle Services
- Surety: The issuing surety provider
By filing the bond, you promise to conduct business according to Minnesota statutes and pay all required taxes, license fees, and penalties.
How Do I Get a Motor Vehicle Dealer Bond in Minnesota?
You can apply for your dealer bond online 24/7. Simply select which bond type you need and provide the following information:
- Name, including any applicable DBA
- Business location address
- Dealer license number, if available
Once your order has been processed, we’ll email your official surety bond form.
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.
How Do I Renew My Bond?
Your Minnesota auto dealer surety bond must be renewed before its current term expires. If you’re a current client, all you need to do is pay the renewal invoice when prompted.
How Do I Update My Bond Form?
If the DPS requires your surety bond documentation to be updated for any reason, contact your surety provider. If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change.
The most common changes requested for these bonds include updating one of the following:
- Dealership business name
- Business location address
- Dealer license number
How to Get a Car Dealer License in Minnesota
The Minnesota Department of Public Safety enforces motor vehicle dealer license regulations, including the bond coverage requirement. Learn How to get a Minnesota Motor Vehicle Dealer License by reviewing our comprehensive guide.
You’ll need to:
- Pass a background check
- Get liability insurance and a surety bond
- Meet zoning and building requirements
- Apply through the eServices portal
- Pay license and plate fees
It typically only takes a few days for the DPS to process applications. Once issued, your license will be valid for a full year.
