The Kansas Department of Revenue (DOR) requires the Kansas Motor Vehicle Dealer Bond (MVD Bond) as a licensing requirement for motor vehicle dealers in the state. Individuals who sell vehicles for a profit, and intend to market five or more vehicles in a calendar year, are subject to this requirement.
The surety bond involves three parties: the principal (motor vehicle dealer), the obligee (the State of Kansas), and the surety company. As a legally recognized entity, the surety company provides financial security that the principal will fulfill their obligations.
If an injured party files a claim against the principal’s bond, the surety company may compensate the injured party up to the total amount of the bond after an investigation into the validity of the claim. Eligible damages may include fraud, incomplete title transfers, delayed or insufficient payments to sellers and taxes, and illegal selling practices.
Unlike an insurance policy, the principal is ultimately accountable for compensating the surety company for any claims and associated expenses. While the bond is a requirement for obtaining a license in the state, it only protects the State of Kansas and not the motor vehicle dealer.
All applicants must post a Kansas Motor Vehicle Dealer Bond to obtain a Kansas Motor Vehicle Dealer License.
The Kansas State Statutes define a motor vehicle dealer as an individual involved in buying, selling, or attempting to negotiate a sale of vehicles for a commission or other form of compensation. This also includes those who engage in auction motor vehicle dealerships.
As mentioned, this bond is necessary for anyone who purchases a vehicle intending to sell it for profit or sells at least five vehicles in a calendar year.
The State of Kansas now requires a bond amount of $50,000, an increase from the previous $30,000, by the Kansas Department of Revenue, effective January 1, 2022.
The good news is that you are not required to pay the full bond amount in order to obtain your Kansas Motor Vehicle Dealer Bond. You are only required to pay a percentage of the bond amount, called a premium. The premium rate is determined by the applicant’s credit score, experience, and history. This soft credit check will not harm your credit score.
Applicants with excellent credit may find quotes as low as 1% of the bond amount. However, we encourage applicants with nonstandard credit to apply for their bonds. EZ Surety Bonds works with various surety companies to offer the best rates for applicants.
The obligee, or entity that requires the Kansas Motor Vehicle Dealer Bond, is the Kansas DOR. The following is their contact information:
Kansas Department of Revenue
Division of Vehicles
Dealer Licensing Bureau
300 SW 29th St.
Topeka, KS 66601-2369
Phone: 785-296-3621
Fax: 785-296-2383
Email: kdor_tr@ks.gov
Obtaining your Kansas Auto Dealer Bond is quick with EZ Surety Bonds. Simply fill out our short online application, and one of our friendly surety experts will reach out to you within 24 hours regarding your free quote.
We offer a stress-free process for all types of bonds. Contact us at 1-800-361-1720 or email bonds@southcoastsurety.com for inquiries.
You must meet the below requirements and submit the following documents to qualify for a Kansas Motor Vehicle Dealer License:
You must also pay (as of 2023):
Regardless of the date of issuance, the Kansas motor vehicle dealer license is valid until December 31st each year and must be renewed before this expiration date.
The Kansas Auto Dealer Bond requires a bond amount of $50,000; however, you only have to pay a percentage called a premium. The premium rate is determined by your credit score and experience. Individuals with an excellent credit score and extensive experience may find bond quotes for as low as 1% of the bond amount. Regardless of your credit score, we encourage you to apply for your free KS MVD Bond quote.
After you purchase the bond, we will mail the original document to you so you can file the bond with your obligee. Most obligees require you to file the original bond signed by the principal, while others may accept an electronic version. However, because every obligee has its own bond filing requirements, please review those requirements before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
