Missouri Auto Dealer Bond Guide
If you are applying to become a licensed motor vehicle dealer in Missouri, you will need to purchase a surety bond. Read on to learn all about the bonding process in this guide.
Bond Overview
- Purpose: To protect dealership consumers from financial harm
- Who Needs It: All motor vehicle dealers in Missouri
- Regulating Body: The Missouri Department of Revenue, Motor Vehicle Bureau
- Required Amount: $50,000 for standard dealers, $100,000 if delivering vehicles to the purchaser
- Premium Rates: 0.5–10% of the bond amount, credit-based
What is a Missouri motor vehicle dealer bond?
Missouri Revised Statutes Section 301.560 requires individuals who sell vehicles or trailers file a $50,000 surety bond as part of the state's dealer licensing application process. By filing a motor vehicle dealer bond, an individual agrees to comply Missouri statutes that regulate the state's auto industry and dealerships.
Similarly, Missouri Revised Statutes Section 301.210 requires individuals file a separate $100,000 surety bond if they deliver a motor vehicle or trailer to a purchaser. In this situation the dealer and purchaser agree that the certificate of ownership will be transferred to the purchaser within 30 days of delivery.
If a dealer does not comply with Missouri statutes, a claim can be filed against their bond. The issuing surety company will pay damages up to the full bond amount for valid claims. The bonded dealer then must reimburse the surety company and could face other consequences such as suspension or revocation of their dealer license.
How much does a Missouri motor vehicle dealer bond cost?
Missouri motor vehicle dealer bond costs start at $250 annually. Your personal bond premium will be provided after a quick application review. Apply now to get your free quote!
How do you get a Missouri auto dealer bond?
You can apply for your Missouri auto dealer bond online 24/7. You'll need to provide your dealership name and existing dealer license number (if available) for Department of Revenue filing approval. Once your order has been processed, your official Missouri surety bond will be delivered by email.
How fast can I get an auto dealer surety bond?
Our industry-leading technology and responsive customer service team allow us to deliver your official Missouri auto dealer bond faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed auto dealer bond delivery.
Who regulates licensing for auto dealers?
The Missouri Department of Revenue Motor Vehicle Bureau enforces motor vehicle dealer license requirements for the state. Applicants will submit their Missouri auto dealer bond along with their dealer licensing application.
Who needs an auto dealer bond in Missouri?
Individuals who sell 8 or more vehicles or 6 or more trailers, powersports, or boats in a calendar year must file a Missouri auto dealer bond. The following types of dealers must be legally licensed and bonded before working in the state.
- used motor vehicle dealer
- wholesale motor vehicle dealer
- franchised motor vehicle dealer
- new powersport dealer
- used powersport dealer
- boat dealer
- emergency vehicle dealer
- trailer dealer
There is also a separate, local bond requirement for Springfield, MO auto dealers.
The Missouri Department of Revenue requires this bond for auto dealer licensing. If you need a surety bond for vehicle registration, the DOR requires a separate Missouri certificate of title bond.
What is the motor vehicle dealer bond amount?
A $50,000 licensed motor vehicle dealer bond is required for motor vehicle dealers, powersport dealers, boat dealers, emergency vehicle dealers, and trailer dealers.
A $100,000 licensed motor vehicle dealer bond is required for dealers who deliver motor vehicles or trailers to a purchaser with an agreement that the certificate of ownership will be transferred to the purchaser within 30 days.
If you need help determining which license type and bond amount you need, contact the Department of Revenue Motor Vehicle Bureau before applying for your auto dealer surety bond.
How do I update or change my auto dealer bond form?
If the Missouri Department of Revenue Motor Vehicle Bureau requires your surety bond documentation to be updated, contact your surety provider. If you purchased your Missouri surety bond from SuretyBonds.com, email [email protected] to explain the needed change. The most common change requested is updating the dealership name to match your Missouri auto dealer license.
How do I renew my motor vehicle dealer bond?
You must renew your Missouri motor vehicle dealer bond before its current term expires. Once you pay your SuretyBonds.com renewal invoice, you'll receive renewal instructions to keep your Missouri auto dealer bond and license active with the state.
How do auto dealers apply for a motor vehicle dealer license in Missouri?
Learn How To Get A Missouri Auto Dealer License by reviewing our comprehensive guide.
You'll need to submit the following documents to apply for a Missouri auto dealer license online.
- photograph of the applicant's building, lot, and sign
- Inspection and Certification for Dealer, Auction, or Manufacturer Business License
- certificate of dealer educational seminar completion
- franchise agreement
- Missouri motor vehicle dealer bond
- garage liability policy (does not apply to trailer, auction, or manufacturers)
- mail-to letter signed by the post office (if your mailing address is different from your physical address)
- fees
- criminal record
