In Kansas, vehicle dealers licensed by the Kansas Department of Revenue (KDOR) - Dealer Licensing Unit are required under KSA 8-2404 to obtain and maintain a motor vehicle dealer bond. This surety bond acts as a safeguard for consumers, wholesalers, and other parties by providing financial recourse if a dealer violates state laws or engages in actions that could lead to license suspension or revocation. Examples include misrepresenting a sale, failing to honor a signed agreement, selling a vehicle without valid ownership documentation, or issuing a title that lacks complete prior-owner information.
Kansas Auto Dealer Bond at a Glance
- Purpose: Protect buyers, sellers, and other parties from financial losses stemming from unlawful or improper dealer conduct.
- Who needs it: New and used motor vehicle dealers, plus other non-exempt KDOR-licensed dealers (including wholesalers, brokers, salvage vehicle dealers, auction motor vehicle dealers, vehicle crushers, recyclers, rebuilders, and converters).
- Regulating Authority: Kansas Department of Revenue, Dealer Licensing Unit.
- Bond amount: $50,000.
- Premium rate: Rates often start around 1% of the bond amount, with pricing determined by credit, financial strength, and industry experience.
These license types must meet the Kansas auto dealer bond requirement:
- New vehicle dealers: Operate under a manufacturer or distributor agreement to sell, trade, or transfer new vehicles, trailers, motorcycles, and related equipment.
- Used vehicle dealers: Regularly buy, sell, or trade pre-owned vehicles for commercial purposes.
How Much Does a Kansas Auto Dealer Bond Cost?
Kansas requires a $50,000 surety bond for both new and used vehicle dealers. While the bond amount is set by the state, the price you pay, called the premium, is only a small percentage of that total.
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| New and Used vehicle dealers | $50,000 | Starts at $500 |
Your exact premium is based on several underwriting factors, including your credit score, financial stability, business history, and overall risk profile.
- 1%–3% (Strong Credit & Financials): Applicants with excellent credit, steady financials, and solid industry experience usually qualify for the lowest rates.
- 3%–5% (Average Credit): Dealers with fair to good credit and stable but moderate financial strength generally fall into this mid-range.
- Up to 10% (Challenged Credit): Applicants with credit issues or limited financials may receive higher rates due to increased risk.
If you’re concerned about qualifying, Bryant Surety Bonds also offers a Bad Credit Surety Bond Program, giving higher-risk applicants access to competitive pricing through top carriers.
To estimate your expected rate, use our Surety Bond Cost Calculator below - just enter your bond type, location, coverage amount, and basic credit information. For an exact premium, complete our short online application to receive a no-obligation quote.
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How to Get a Kansas Auto Dealer Bond
Getting bonded in Kansas is fast, straightforward, and fully online.
- Complete a brief online form. Share your contact information, and the bond coverage amount you need.
- Receive a free, no-obligation quote instantly..
- Get your bond certificate. Once you approve and pay for your bond, we’ll issue your official bond certificate so you can file it with your license application or renewal.
Because Bryant Surety Bonds is authorized to issue Kansas auto dealer bonds (license #208538577-000) and works directly with top surety providers, most applicants complete the entire process within a single business day.
How Do You Get a Kansas Auto Dealer License?
To obtain a Kansas motor vehicle dealer license, applicants must submit a complete application packet that includes the following:
- A designated commercial place of business that meets state requirements
- Zoning approval allowing vehicle sales at the location
- A working business telephone line
- A permanent business sign visible from the roadway
- Photographs of the office, sign, and display area
- Proof of property ownership or a signed lease
- $50,000 surety bond
- Valid Kansas tax clearance certificate
- Verification from the county treasurer showing no outstanding personal property taxes
- Liability insurance for the dealership and inventory
- Business formation documents (Articles of Incorporation/Organization if a corporation or LLC)
- List of all owners, partners, or corporate officers
- Sales tax registration number
- Three business references (required for certain dealer categories)
- Fingerprinting or background check, if applicable
- $75 application fee
Mail the completed application and supporting documents to:
Kansas Department of Revenue
Attn: Dealer License
PO Box 2369
Topeka, KS 66601-2369
For more information, you can check our Kansas Auto Dealer License Guide.
Kansas Auto Dealer Bond Renewal
Kansas dealer licenses expire on December 31 each year, and dealers must renew before that date to continue operating legally. To stay compliant, your auto dealer bond must also remain active and in good standing throughout your licensing period. The Kansas dealer bond is continuous in form—it remains in effect until canceled by the surety on 30 days’ written notice to KDOR. Most dealers pay an annual premium installment to keep coverage active, ensuring there is no lapse when you submit your license renewal.
Important Update for Kansas Dealerships
Under 2025’s House Bill 2030, dealers and manufacturers that deal exclusively in certain non-motorized trailers are now exempt from many of the standard requirements under the Vehicle Dealers and Manufacturers Licensing Act.
For example, the usual 90-day advance notice requirement for termination or nonrenewal of a franchise agreement no longer applies to those trailer-only dealers covered by the bill. However, the exemption does not apply to motorized vehicles, semitrailers, travel trailers, or dealers offering any type of vehicle beyond the covered trailer definitions.
FAQs
Can I operate from multiple locations on one Kansas dealer license?
Yes, through supplemental places of business. Under KSA 8-2404(f), a Kansas dealer can establish additional locations within the same county (or, for new vehicle dealers, within their franchise area of responsibility) by paying a $35 supplemental license fee per location, securing zoning approval, and passing a field inspection by the Dealer Licensing Bureau. Your $50,000 surety bond covers your operations as the licensee—you don’t need a separate bond for each location.
Are motorcycle dealers required to obtain the same bond?
Yes. Motorcycles are motor vehicles under Kansas law, so motorcycle dealers post the same $50,000 bond as dealers of cars, trucks, and other motor vehicles. Note that 2025’s HB 2030 carved out dealers and manufacturers that deal exclusively in non-motorized trailers from many provisions of the Vehicle Dealers and Manufacturers Licensing Act—but semitrailers, travel trailers, and motorized vehicles remain fully covered.
Are installment options available for paying my Kansas auto dealer bond premium?
Unfortunately, no. Auto dealer bond premiums are paid in full up front for the full annual term. This keeps your overall cost lower—most well-qualified applicants pay roughly 1-2% of the $50,000 bond amount, so the full annual premium is usually a manageable one-time expense.
What happens if a claim is made against my Kansas auto dealer bond?
Under KSA 8-2404, an aggrieved retail or wholesale buyer or seller of a vehicle must first obtain a final judgment from a Kansas court establishing that the loss resulted from an act by the dealer that violates the Vehicle Dealers and Manufacturers Licensing Act. The Director of Vehicles then determines whether the judgment qualifies for payment from the bond. If it does, the surety pays the claim up to the $50,000 bond limit—but as the principal, you are required to reimburse the surety in full for any amount paid out, plus any legal costs. The aggregate liability of the surety can never exceed the face amount of the bond, regardless of how many claims are filed. This is why bond claims should be taken seriously and addressed promptly with your surety provider.
How long does it take to get a Kansas auto dealer bond?
Quickly. Most applicants are quoted within a single business day, and once you accept the terms and complete payment, your official $50,000 bond is typically issued within 24 hours—ready to mail to the Kansas Department of Revenue alongside the rest of your dealer application packet.
Does obtaining a Kansas auto dealer bond affect my credit score?
No. Surety underwriting uses a soft credit inquiry, which does not affect your credit score and is not visible on the credit reports lenders pull. You can request and compare quotes freely without any impact on your credit standing.
Can I get a Kansas auto dealer bond if I have bad credit or past financial issues?
Yes, you can. Through Bryant Surety Bonds’ Bad Credit Surety Bond Program, applicants with low credit scores, prior bankruptcies, or other financial setbacks can still get bonded. Premiums for higher-risk applicants typically run in the 5%–10% range, but our network of top-rated sureties allows us to find competitive pricing even in difficult situations.
