Mississippi Motor Vehicle Dealer Bond
What is a Mississippi motor vehicle dealer bond?
The Mississippi Motor Vehicle Commission requires anyone applying for a new motor vehicle dealer license in the state to post a $25,000 Motor Vehicle Dealer Bond. This requirement applies to franchise dealers only. You must post a $100,000 blanket bond if you have multiple franchise dealership locations. The bonding requirement applies to the following types of new motor vehicle dealers:
- Automobiles
- RVs
- Motorcycles and scooters
- Buses
- Specialty vehicles
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 Mississippi:
How much does a Mississippi motor vehicle 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 $25,000 Mississippi auto dealer surety bonds for as low as $125 per year. Apply today!
Who needs an auto dealer surety bond in Mississippi?
To apply for a new vehicle dealer license for the first time in Mississippi, you must post a $25,000 surety bond. To apply for licenses at multiple locations, you’ll need a $100,000 bond covering all locations (you won’t need multiple bonds). Dealers appointed by the State Tax Commission (designated agents) must post a $15,000 bond.
See the Mississippi Code for more information.
How to Apply for Your Motor Vehicle Dealer License in Mississippi
To apply to become a motor vehicle dealer in Mississippi, follow these general steps:
- Complete the application, including the following documents.
- Submit a surety bond.
- Send the required fees.
- Include your bank officer’s name and number, a biography of each principal, a copy of your latest financial statement, and a sketch or photos of your facilities.
- Submit your franchise agreement.
Mail your complete application to:
- Mississippi Motor Vehicle Commission
- 1755 Lelia Drive, Suite 200
- Jackson, MS 39216
If you have any questions regarding your application, contact the Motor Vehicle Commission at 601-987-3995 or info@mmvc.ms.gov.
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 Mississippi?
The Mississippi Motor Vehicle Commission regulates licensing and bonding for the motor vehicle industry in the state and is the obligee.
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 Mississippi 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.