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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Missouri MVD Bond Requirements and Information:
The Missouri DOR issues a number of 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:
· with the MO Secretary of State (SOS).
o Call the SOS at (573) 751-3827 for details.
· Have your dealership pass an inspection.
· Complete a 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.
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:
o Be permanently enclosed.
o Be owned or leased by you (the dealer license applicant).
o Have its own working telephone and listing.
· The display area must:
o Have room for multiple motor vehicles exclusively displayed for sale.
o Not be a public road.
o Be easily viewed from the closest public road.
· The dealership’s sign must:
o Display the name of the dealership as it appears in advertisements to the public.
o Have letters at least 6 inches tall.
o Be permanent and able to withstand the weather.
· Your business hours must be posted.
o Business must be open at least 20 hours per week.
o 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(Form 4682)—keep track of this form! You’ll need it to apply for your license.