What is a Mississippi Designated Agent (Motor Vehicle Dealers Only) Bond?
The Mississippi Department of Revenue requires all licensed motor vehicle dealers to become a Designated Agent. To receive approval as such, they must obtain a surety bond, called the Mississippi Designated Agent (Motor Vehicle Dealers Only) Bond.
This surety bond is a contractual agreement involving three parties: the principal (the licensed motor vehicle dealer that needs the designated agent bond), the obligee (the Mississippi Department of Revenue), and the surety company.
The surety bond guarantees that the individual selected to serve as Designated Agent will fulfill their obligations under the Mississippi Motor Vehicle Title Act. This includes upholding legal standards when dealing with applications for certificates of title, inspections of vehicles, and identification of the person signing the application.
If the licensed motor vehicle dealer (the Designated Agent) breaches licensing laws or regulations and causes damage to the state, the public, or any other entity, a claim can be made against their $15,000 surety bond after an investigation into the validity of the claim
If the surety determines the claim is valid, they will reimburse the injured party up to the full bond amount. The principal is responsible for reimbursing the surety for any damages paid, including any associated costs incurred by the surety while investigating the claim.
Who has to get this bond?
Licensed motor vehicle dealers in Mississippi are required to obtain an MS Designated Agent Bond in order to qualify as a Designated Agent.
A Designated Agent (motor vehicles only) is authorized to carry out the task of assigning titles to vehicles on behalf of the Mississippi Department of Revenue. This bond guarantees that they will fulfill their obligations as stated in the Mississippi Motor Vehicle Title Act.
How much does a State of Mississippi Designated Agent (Motor Vehicle Dealers Only) Bond cost?
A Mississippi Designated Agent (Motor Vehicle Dealers Only) Bond has a required bond amount of $15,000. Fortunately, that is not the price you must pay to obtain your bond. You will pay a small percentage of the total amount, called a premium. Your premium rate will vary depending on your industry experience and credit history. Please note that the credit check required to quote your bond is a soft credit check and will not harm your credit score.
Applicants with excellent credit may see quotes starting as low as 1% of the bond amount. However, even if you have nonstandard credit, we encourage you to apply for your free bond quote. At EZ Surety Bonds, we work with a variety of sureties to find you the best quote available.
Obligee Information
The obligee, or the entity that requires the Mississippi Designated Agent (Motor Vehicle Dealers Only) Bond, is the Mississippi Department of Revenue. Their contact information is below:
Mississippi Department of Revenue
Motor Vehicle Licensing Bureau
500 Clinton Center Drive
Clinton, MS 39056
Phone: (601) 923-7200
How to get your Mississippi Designated Agent (Motor Vehicle Dealers Only) Bond?
Applying for your bond quote with EZ Surety Bonds is quick, easy, and free, regardless of the type of bond you need. To obtain your Mississippi Designated Agent (Motor Vehicle Dealers Only) Bond simply fill out our short online form, and one of our friendly surety experts will contact you regarding your free quote within 24 hours.
Our surety experts are always happy to assist. If you have any questions, please contact bonds@southcoastsurety.com or call 1-800-361-1720.
Frequently Asked Questions
How to become a licensed motor vehicle dealer in Mississippi?
You will need to follow these steps to obtain your Mississippi Motor Vehicle Dealer License:
- Attend an eight-hour educational seminar by the Mississippi Independent Auto Dealers Association (MIADA).
- Choose the business structure that will be listed for the dealership owner.
- Obtain a Federal Employee ID Number (FEIN).
- Get a permanent business location.
- Complete the sales tax registration form and secure the sales tax number.
- Maintain a liability insurance policy for motor vehicles.
- Get your MS Designated Agent Bond.
- Submit your license application and supporting documents to the Mississippi Department of Revenue.
A $100 fee applies to all license types, a $10 salesperson's application fee applies to new dealers, and a $43.75 fee applies to used and wholesale dealers (as of 2023). Maintaining your Mississippi dealer license requires yearly renewal.
How much is a Designated Agent (Motor Vehicle Dealers Only) Bond in Mississippi?
The MS Designated Agent Bond amount is $15,000. Your credit score and financial standing, along with the number of years you’ve been in business will determine your premium rate.
Quotes may start as low as 1% of the total bond amount for applicants with optimal credit and experience. However, we work with a variety of surety markets to offer competitive quotes. Because the soft credit check will not hurt your credit score, we encourage you to apply for your bond anyway, even if you have nonstandard credit. Simply apply on our website today and one of our surety experts will contact you regarding your free quote within 24 hours.
After I purchase my Mississippi Designated Agent (Motor Vehicle Dealers Only) Bond, what do I do?
After you purchase the bond, we will mail you the original document to you. Some obligees require you to file the original bond with them, while others may allow you to submit an electronic version. Your bond filing requirements will vary depending on your obligee, so be sure to check with your obligee before you do anything with your bond.
