Missouri Auto Dealer Bond

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What is a Missouri auto dealer bond?

The Missouri Department of Revenue Motor Vehicle Bureau requires the following auto dealers to be licensed and bonded to operate in the state.

  • New vehicle franchise dealers
  • Used motor vehicle dealers
  • Powersport dealers
  • Wholesale motor vehicle dealers
  • Trailer dealers
  • Boat dealers

Dealers must generally post a $50,000 surety bond. If they plan to deliver delayed title certificates to purchasers (within 30 days of delivery), a $100,000 bond is required.

Auto dealer bonds hold dealers and dealerships accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law or fails to pay taxes owed to the state, the injured party can file a claim against the bond for compensation.

Get Your Auto Dealer Bond:

How much does a Missouri 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 Missouri motor vehicle dealer bonds for as low as $250 per year. Apply today!

How to Get Your Missouri Motor Vehicle Dealer License

You will need the following items to apply for your Missouri motor vehicle dealer license online:

  • Surety bond (or irrevocable line of credit)
  • Inspection and certification
  • Garage policy
  • Photograph
  • Franchise agreement
  • Dealer seminar (for used motor vehicle dealers)
  • Manufacturer’s Letter of Appointment
  • Name-based criminal record (for each listed owner on license)
  • Mail-to letter (signed by post office) if mailing address differs from physical address
  • Form of payment for license and processing fees

See MyDMV for details on how to create a new account and apply.

Frequently Asked Questions

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.

The Missouri Department of Revenue regulates licensing and bonding for the motor vehicle industry.

You must renew your bond each year by a specific date for it to remain active (and for you to maintain your business license). Your expiration date will be listed on your bond form.

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.

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.

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 Missouri Auto Dealer Bond

ZipBonds offers the fastest and most secure option for getting auto dealer bonds. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent directly. Many of our bonds can be processed and issued immediately online.

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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.