Minnesota MVD Bond

Minnesota MVD Bond

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What is an Minnesota Car Dealer Bond? 

Minnesota Car Dealer Bonds are required by the Minnesota Department of Public Safety to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $50,000.  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:  

$50,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers

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 Minnesota Car Dealer bond (Apply) online immediately

Minnesota MVD Bond Information and Requirements:

Who must have a dealer license?

  • Anyone engaged in the business of leasing, selling or arranging the sale of motor vehicles (new or used)
  • Anyone who has leased or sold more than five vehicles, wholesale or retail, in a twelve month period
  • Anyone in the business of selling used vehicle parts, or processing and selling scrap metals acquired from vehicles
  • Anyone who conducts consignment sales or arranges sales or leases



  • Any type of dealership is considered a commercial operation. Consequently, dealerships are required to be in a commercial location.
  • In agricultural and industrial areas, zoning officials may consider issuing special use permits for a commercial operation.

Commercial Building
A permanent, enclosed building that is on a permanent foundation, connected to local sewer and water facilities, or otherwise complying with local sanitary codes, adapted to commercial use and conforming to local government zoning requirements. This may include strip office malls or garages if a separate entrance and a separate address is maintained and the dealership is clearly identified as a separate business.

Do not file an application until the location meets all the necessary requirements listed on the checklist

  • Failure to meet the requirements or any misstatement on the checklist will result in the denial of the dealer license
  • Any applicant denied a dealer license must wait one year to reapply
  • Used license applicants are encouraged to submit photos of the commercial building, designated display lot, and exterior sign.

Note: Please be aware that while you may meet state requirements for dealer licensing, other city, county, state or federal regulations may govern your business (for example, you may need zoning approval or a city license in order to do business). Contact your local unit of government.


A separate license is required if the dealer is selling in a city with less than 100,000 population, outside the seven-county metro area.

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