Kansas Auto Dealer Bond
What is a Kansas auto dealer bond?
The Kansas Department of Revenue requires vehicle dealers in the state to post a $50,000 surety bond. An auto dealer bond holds dealers and dealerships accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law, the customer can file a claim against the bond for compensation.
Get Your Auto Dealer Bond in Kansas:
How much does a Kansas auto dealer bond cost?
Auto dealer bond premiums can vary based on applicants’ credit scores: the higher your credit score, the lower your annual premium. If you have excellent credit, expect to pay as little as 1% or less of the total bond amount. Other factors that may impact the cost of your bond include your industry experience and business and personal financials.
ZipBonds can offer $50,000 Kansas vehicle dealer bonds for as low as $350 per year. Apply today!
Who needs an auto dealer surety bond and license in Kansas?
The Kansas Revised Statutes require any auto dealers in the state to file a surety bond and license before beginning to sell, distribute, manufacture, or dispose of vehicles. The requirement applies if you purchase any vehicles intending to sell them for profit OR you sell five or more vehicles in a year.
How to Apply for Your Auto Dealer License in Kansas
Follow these basic requirements to get your auto dealer license in Kansas:
- Have an established place of business.
- Ensure your business name matches the name used to apply for your sales tax registration number.
- Pass a Kansas tax clearance check.
- Make sure you have an operable phone.
- Have a sign with your business name.
- Complete an Articles of Incorporation form.
- Get insurance for your business and inventory.
- Provide three credit check references.
- Make sure you have proper zoning.
- Maintain a surety bond for the duration of your business.
Learn more about your requirements on the Department of Revenue’s Dealer Licensing page. The official application (with helpful tips and instructions) is also available online.
Frequently Asked Questions
How long does it take to get a motor vehicle dealer bond?
Since this bond requires underwriting, we can’t issue it to you instantly. However, the ZipBonds team always strives to deliver your bond to you within 24 hours of application.
Who regulates auto dealer bonds in Kansas?
The Kansas Department of Revenue Division of Vehicles regulates licensing and bonding for the motor vehicle industry.
How do I renew my surety bond?
You must renew your bond each year by a specific date for it to remain active (and for you to maintain your business license).
If you’re buying your bond from Zip, we’ll send a reminder when the expiration date is approaching. That way, you’ll have plenty of time to renew your bond and maintain your business license.
What happens if someone files a claim on my bond?
A customer can file a claim if a dealer commits fraud or unethical or unlawful business activity. If the claim is valid, the surety may cover the customer’s losses up to the total amount of the bond. The dealer will then need to pay back the surety for the damages.
Claims can be costly and damage your reputation and ability to get licensed and bonded again, so it’s best to do everything you can to avoid them.
How can I avoid claims on my auto dealer bond?
Avoid illegal activities and fraudulent business practices to prevent claims on your bond. Pay all taxes you owe. Also, ensure you comply with your licensing regulations. If a customer complains about something, address the issue immediately to avoid complaints from turning into costly claims.
How to Get Your Kansas Auto Dealer Bond
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to get bonded in a flash!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.