Missouri MVD Bond

Missouri MVD Bond

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A Missouri MVD Bond is a financial guarantee between the state of Missouri and a business that is licensed to operate within the state. The bond is a guarantee that the business will abide by all laws, regulations, and policies of the state regarding the operation of motor vehicle dealerships. The bond is a promise by the business that it will pay all taxes, fees, and penalties as required by law. The bond also ensures that the business will comply with all applicable laws and regulations related to the operation of a motor vehicle dealership. If the business fails to comply with the terms of the bond, the state of Missouri may take legal action against the business to recover any money owed. The bond ensures that businesses are held financially accountable for their actions, protecting consumers from fraudulent or deceptive practices.

What is an Missouri Car Dealer Bond? 

Missouri Car Dealer Bonds are required by the State of Missouri CMV 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 Missouri Car Dealer bond (Apply) online immediately

Missouri MVD Bond Requirements and Information:

The Missouri DOR issues a number of different dealer licenses for people including (but not limited to):

·         New motor vehicle franchise dealers (can sell new and used cars).

·         Used motor vehicle dealers (can only sell used cars).

·         Boat dealers.

·         Motor vehicle brokers.

·         Public motor vehicle auctioneers.

·         Trailer dealers.

Wholesale motor vehicle dealers.

PRIOR to submitting your application for a new/franchise or used dealer license in Missouri, you must:

·         Register your business with the MO Secretary of State (SOS).  Call the SOS at (573) 751-3827 for details.

·         Have your dealership pass an inspection.

·         Complete a dealer educational seminar IF you’re applying for a used motor vehicle dealer license.

You’ll need to set up an inspection appointment with a local member or designee of the MO State Highway Patrol troop in your area

The Department of Revenue requires your dealership to meet the following criteria for a bona fide established place of business: 

·         The main building for conducting business must:

  Be permanently enclosed.

  Be owned or leased by you (the dealer license applicant).

  Have its own working telephone and listing.

·         The display area must:

  Have room for multiple motor vehicles exclusively displayed for sale.

  Not be a public road.

  Be easily viewed from the closest public road.

·         The dealership’s sign must:

  Display the name of the dealership as it appears in advertisements to the public.

  Have letters at least 6 inches tall.

  Be permanent and able to withstand the weather.

·         Your business hours must be posted.

  Business must be open at least 20 hours per week.

  Business must be open at least 4 days per week between 6 a.m. and 10 p.m.  

Once your dealership passes inspection, the inspector will complete the applicable section on the Application for Dealer, Auction, or Manufacturer License and Number Plate (Form 4682)—keep track of this form! You’ll need it to apply for your license.

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