What’s the Cost of Your Kentucky Auto Dealer Bond?
Your bond price, referred to as the bond premium, is only a fraction of the bond amount you need to post. It’s determined based on your personal and business finances.
The most important factor that affects your bond cost is your personal credit score.
|Kentucky Auto Dealer Bond Costs|
|License type||Bond Amount||Starting Price|
|Kentucky auto dealers||$15,000 to $100,000||$150 to $1,000|
Your surety may consider other factors in the bond formation, such as your business finances, fixed and liquid assets, and industry experience. For a full overview of how your bond cost is set, don’t miss our extensive surety bond cost guide.
If you need a quick estimate of your auto dealer bond cost, you can use our easy surety bond calculator.
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Can I Get Bonded If I Have Bad Credit?
Not all applicants have perfect scores, but this does mean you can’t get bonded if your credit score is low.
Our Bad Credit Program is designed for applicants with low credit scores and other financial issues. With its help, you can get the Kentucky dealer bond you need and start your business.
How to Get a Kentucky Dealer License?
You’ll need a license to sell more than 5 vehicles in a period of 12 months.
To get licensed, you have to meet a list of Kentucky dealer license requirements. Many dealers need to post a surety bond as well, but this is decided by the Kentucky Motor Vehicle Commission separately for each applicant.
The other paperwork you’ll need to provide includes:
- Business entity registration in the state
- Employer Identification Number (EIN) from the IRS
- Proof of meeting all requirements for your permanent business location, including size, photos, and drawings
- Zoning certification of the business location (for restricted/automotive recycling dealers)
- Financial statement
- Sales tax permit number
- Certificate of insurance ($250,000 per person, $500,000 per occurrence, and $250,000 for property damage)
- Copy of the franchise agreement (for new car dealers)
- Criminal background check
- Completed salesperson license application form for each salesperson and owner
- Completed Kentucky dealer license application
- Proof of payment of all fees: $100 dealer license fee, $40 application fee, $20 salesperson license fee, and $20 salesperson criminal background check fee