Who needs this bond?
Auto dealer bonds are required for anyone applying for or renewing a motor vehicle dealer license in Missouri. This includes businesses selling cars, trailers, boats, or operating as wholesale dealers. The Missouri Department of Revenue requires this bond as part of the licensing process.
If you plan to buy, sell, or exchange motor vehicles as a business, you will need this bond before your dealer license can be approved or renewed. It is one of several requirements that must be completed to legally operate as a licensed dealer in the state.
How much does this bond cost?
Missouri requires auto dealers to carry a $50,000 surety bond. However, you do not pay the full $50,000. Instead, you pay a small percentage of that amount as your annual premium.
Most dealers pay between 1% and 3% of the total bond amount per year. Your exact rate depends on factors such as credit history, financial background, and industry experience.
The surety company reviews your application and determines the rate based on overall risk. Applicants with stronger credit profiles typically qualify for lower rates.
How do I get this bond?
Getting your Missouri auto dealer bond is a straightforward process:
First, complete a short bond application. The surety company will review your credit, financial information, and business details. Once approved, you will receive a quote for your premium. After payment, the bond is issued so you can file it with the Missouri Department of Revenue as part of your license application.
To obtain your Missouri auto dealer license, you must also complete the full licensing process, which includes:
- Submitting the dealer license application
- Posting the required $50,000 surety bond
- Providing proof of garage liability insurance
- Completing a background check
- Completing the required dealer seminar, if applicable
- Meeting established place-of-business and signage requirements
- Submitting all required documents and fees
The bond must be in place before your dealer license can be finalized.
Can I get this bond with bad credit?
Yes, it is still possible to obtain a Missouri auto dealer bond with less-than-perfect credit.
While applicants with strong credit typically receive the lowest rates, a lower credit score does not automatically prevent you from getting bonded. The surety company may adjust the premium to reflect additional risk, but many dealers with credit challenges are still approved.
How fast can I get this bond?
In many cases, auto dealer bonds can be approved the same day once a completed application is submitted. Processing time depends on how quickly underwriting can review your information.
Applicants with straightforward credit and financial profiles often receive faster approvals. Once payment is made, the bond can be issued promptly so you can move forward with your license application.
Are there any local requirements?
All Missouri auto dealers must meet statewide licensing requirements established by the Department of Revenue. In addition to the surety bond, you must maintain an approved business location, proper signage, garage liability insurance, and complete any required dealer training.
Local zoning or business registration requirements may also apply depending on where your dealership is located. It is important to confirm that your business location complies with all state and local rules before submitting your application.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
