How much does an auto dealer bond cost in Mississippi?
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Mississippi Department of Revenue as part of the licensing requirements for dealerships to conduct business in the state. The Department of Revenue sets the total bond amount based on the type of dealership:
- $25,000 bonds for motor vehicle dealers
- $15,000 bonds for designated agents
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Mississippi 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 Mississippi 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 Mississippi.
- EZ Surety has issued used car dealer bonds for premiums as low as $150.
Why are auto dealer bonds important in Mississippi?
Mississippi auto dealer bonds provide protection for customers, creditors, and the state government. When a Mississippi 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 Mississippi Motor Vehicle Commission.
If the auto dealer fails to comply with the conditions, 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 Mississippi
To obtain your auto dealer license in Mississippi, you must meet the Mississippi Department of Revenue licensing requirements by completing the following steps:
- Complete the application for dealer licensing
- Post the appropriate surety bond
- Complete a pre-licensing training course
- Provide proof of garage liability insurance
- Pay all application and licensing fees