Kansas MVD Bond

Kansas MVD Bond

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A Kansas MVD bond, also known as a Motor Vehicle Dealer bond, is a type of surety bond that is required by the Kansas Department of Revenue for individuals or businesses that want to obtain or renew a motor vehicle dealer license. The bond serves as a form of protection for customers against any fraudulent or unethical practices by the motor vehicle dealer. If a dealer engages in such practices, a customer may file a claim against the bond to seek compensation for any resulting damages. The bond amount required by the Kansas MVD may vary based on the type of license and the dealer's history, and the bond must be renewed periodically to maintain the dealer's license.

What is an Kansas Car Dealer Bond? 

Kansas Car Dealer Bonds are required by The Motor Vehicle Department "MVD" to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $30,000.  The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.

The State requires a Car Dealer bond for each license you hold:  

- $30,000 New and Used Vehicle Dealer Bond          https://www.wwisinc.com/bond-types/apply/kansas-mvd-bond

Different parts of a bond:

 There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee  is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
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You can buy your Kansas Car Dealer bond (Apply) online immediately

Kansas MVD Bond Requirements and Information:

Basic requirements to become a dealer

  • You must have an established place of business.
  • The Business name MUST match the name you applied under for your sales tax registration number.
  • You must pass a Kansas tax clearance check.
  • You must have an operable telephone.
  • You must have proper zoning at your business location for the vehicles you are selling.
  • You must have a sign in the business name.
  • Your local county treasurer must verify that you do not owe any personal property taxes.
  • Three credit references are required.
  • Articles of Corporation.
  • You must have insurance on your place of business and on all inventory.
You are required to obtain and maintain a $30,000 surety bond.

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