Missouri Auto Dealer Bond Overview
If you have been in the industry for a while, you know that getting your dealer license issued in Missouri is impossible without a valid Missouri auto dealer bond.
The auto dealer bond is a type of surety bond required from dealers in all states, to ensure that the interest of car buyers are protected. Auto dealer bonds are issued by a bonding company which backs an agreement between the dealer and the state. Failure to comply with the terms of the bond agreement can result in a claim against the dealer’s surety bond. This is why it’s so important for auto dealers to stay current on all legislation affecting the automotive industry.
Here’s the most important information pertaining to this requirement:
Bond Name: Missouri Motor Vehicle Dealer Bond
Amount: $25,000
Obligee: Motor Vehicle Bureau
Dealer Licensing Section
P.O. Box 43
Jefferson City, MO 65105-004
Expiration Date: Dec. 31 of each year
Ready to begin your application? Click on the Start Your Application button and follow the instructions. For more information about this requirement keep reading the sections below.
Missouri Auto Dealer Bond Cost
There is an easy way to get a rough estimate of the cost of getting bonded. The total bond amount for dealer bonds in Missouri is $25,000. This is the amount up to which consumers get coverage in case they suffer losses. Your premium will be a percentage of this amount.
Bonds are underwritten similarly to insurance: by paying yearly premiums. Unlike the total bond amount, which is determined by the Motor Vehicle Bureau, your bond premium is set by the bonding company which underwrites it. Bonding companies bear legal responsibility for any claims against the dealer, which is why the premiums they calculate are based on the risk they undertake.
If you have good credit, you pose a relatively low risk to the surety and your premiums are unlikely to exceed 3% of the $25,000 amount. Sureties also consider additional factors, which can be favorable to your situation. For example:
- Strong financial statements
- Strong asset profile
- Industry experience
Surety Bond Cost by Credit Score | |||||
---|---|---|---|---|---|
Surety Bond Name | Surety bond amount | Above 700 | Between 650-699 | Between 600-649 | Below 599 |
Missouri Motor Vehicle Dealer Bond | $25,000 | $250-$500 | $375-$750 | $500-$1,000 | $750-$1,750 |
When applying for your Missouri auto dealer bond, it is no less important how you choose your surety bonds agency, which will act as an intermediary between you and the bonding company. Look for an agency with rich experience and many partnering bond underwriters. Working with a strong surety bond agency, like Bryant Surety Bonds, gives you access to the best bonds, and at the lowest rates for your particular situation.
You can find more information on our our How Much Does a Surety Bond Cost? Page. Alternatively, you can use the surety bond cost calculator on your right.
Bad Credit Dealer Bond in Missouri
Although a good credit score will make the bonding process much easier, bad credit applicants can get a dealer bond too. In our experience, and thanks to our Bad Credit Surety Bonds Program, 99% of applicants successfully get bonded.
Since the risk for the bonding company is higher, they offer bad credit dealer bonds at higher premiums: generally between 4% and 7% of the total bond amount. Our surety bond experts can provide helpful tips on reducing your premiums as much as possible. Also, since Missouri dealer bonds are renewed each year, you can take steps to further reduce your premium next time around.
Missouri Dealer License - Application and Renewal
It’s important to follow all instructions listed on the website of the Motor Vehicle Bureau closely, so you avoid getting your licensing application rejected. The dealer bond is just one requirement. The other requirements include:
- A criminal background check
- Photographs of your building, sign, and lot
- Certificate of Dealer Educational Seminar Completion (used-car dealers only)
- Garage liability insurance
- Pay applicable fees
Your Missouri dealer license expires on December 31st of each year, so a renewal application should be submitted prior to that. An active auto dealer bond must also be in place at the time of renewal.
Get Your Missouri Auto Dealer Bond Today!
Ready to get your Missouri dealer bond? Simply start our online application and it will seamlessly take you through all the necessary steps. We will get in touch if we need any complementary documentation to finalize your application.
Your surety bond should be ready within two days of the date your pay your bond quote. The original bond form, which we will send to you by mail, should be attached as part of your dealer license application. You can also request copies for your records.
As always, if you need any help, feel free to contact us at 866.450.3412!