How much does an auto dealer bond cost in Missouri?
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Missouri Department of Revenue as part of the licensing requirements for car dealerships, trailer dealers, boat dealers, and wholesale motor vehicle dealers to conduct business in the state. The Department of Revenue sets the total bond amount at $50,000.
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Missouri auto dealer bonds typically cost between 1% and 3% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Missouri auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for auto dealer surety bonds in the State of Missouri.
- EZ Surety has issued car dealer bonds for premiums as low as $500.
Why are auto dealer bonds important in Missouri?
Missouri auto dealer bonds provide protection for customers, creditors, and the state government. When a Missouri motor vehicle dealer posts a surety bond, they provide a guarantee to the bond’s Obligee (the Department of Revenue) that they will conduct business in compliance with the conditions listed in the Missouri Statutes.
If the auto dealer fails to comply with the statutes, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
How to get your auto dealer license in Missouri
To obtain your auto dealer license in Missouri, you must meet the Missouri Department of Revenue licensing requirements by completing the following steps:
- Complete the dealer license application
- Post the $50,000 surety bond
- Provide proof of garage liability insurance
- Complete a background check
- Provide a copy of your dealer seminar certificate
- Provide a copy of the factory franchise agreement
- Install the required signage at the established place of business
- Pay all application and licensing fees