What is a Missouri Motor Vehicle Dealer Surety Bond?
The state of Missouri requires any individual or business that sells eight or more vehicles in a calendar year to be a licensed motor vehicle dealer, unless they are:
- A financial institution or selling repossessed motor vehicles
- Disposing of vehicles used and titled solely in your ordinary course of business
- A collector of antique motor vehicles
As part of the licensing requirements, applicants must submit and maintain a $50,000 surety bond with the state. This bond protects individuals from financial loss due to actions of the principal (vehicle dealer) and is a guarantee that the principal faithfully complies with all provisions of the Missouri statutes applicable to motor vehicle dealers. If financial damages occur, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
What are the terms of the bond?
Missouri Motor Vehicle Dealer Surety Bonds must be filed with the Missouri Department of Revenue – Vehicle & Driver Licensing Division, and the aggregate liability of the surety shall not exceed the penal sum of the bond. The bond has a continuous term and remains in full force and effect until canceled by the surety. The surety may cancel the bond for any reason by giving 30 days advanced written notice to the state.
How much do Missouri Motor Vehicle Dealer Bonds cost?
Pacific Surety is proud to offer a variety of approvals, regardless of credit, for Missouri Motor Vehicle Dealer Surety Bonds, with rates as low as $250 annually for well qualified applicants. It typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.