Who needs Mississippi Auto Dealer Bonds?
Mississippi auto dealers are required to carry this bond as part of the licensing process through the Mississippi Department of Revenue. This includes motor vehicle dealers and designated agents who sell vehicles to the public.
If you are applying for a new dealer license or renewing an existing license, you will need to file the required bond before your license can be approved or continued.
This bond is a condition of holding your dealer license. It provides financial protection to customers and the state if a dealer violates licensing rules or fails to meet their legal obligations. If a valid claim is paid out, the dealer is responsible for repaying the bonding company for any covered losses.
How much do Mississippi Auto Dealer Bonds cost?
Mississippi requires a $25,000 bond for motor vehicle dealers and a $15,000 bond for designated agents.
You do not pay the full bond amount. Instead, you pay a small percentage of that amount as your annual premium. Most applicants pay between 1% and 3% of the required bond amount.
Your final rate is based on factors such as personal credit, business history, financial stability, and industry experience.
How do I get a Mississippi Auto Dealer Bond?
Getting your Mississippi auto dealer bond is a straightforward process:
- Complete a short bond application.
- The bonding company reviews your credit and business information.
- You receive a quote and, once payment is made, the bond is issued.
The bond must then be filed with the Mississippi Department of Revenue as part of your dealer license application or renewal.
To obtain your auto dealer license in Mississippi, you will also need to complete the dealer license application, finish any required pre-licensing training, provide proof of garage liability insurance, and pay the applicable licensing fees.
Can I get a Mississippi Auto Dealer Bond with bad credit?
Yes, it is still possible to get a Mississippi auto dealer bond with less-than-perfect credit.
While applicants with strong credit typically qualify for the lowest rates, many dealers with credit challenges are still approved at higher premium rates. Credit issues do not automatically disqualify you from getting bonded.
How fast can I get Mississippi Auto Dealer Bonds?
In most cases, auto dealer bonds can be approved quickly once a completed application is submitted. Many applicants receive a quote the same day, and bonds are often issued shortly after payment is received.
Timing can vary depending on the completeness of the application and any additional underwriting review that may be required.
Are there any local requirements?
The bond requirement is set at the state level through the Mississippi Department of Revenue. In addition to posting the required bond, dealers must complete the full licensing process, which includes submitting an application, completing required training, maintaining garage liability insurance, and paying all required fees.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
