Surety bond required by the Missouri Department of Revenue Motor Vehicle Bureau of every licensed motor vehicle dealer under RSMo §301.560.
RSMo §301.560 establishes Missouri's motor vehicle dealer bonding scheme. The amount varies by license type:
| License Type | Bond |
|---|---|
| New Motor Vehicle Dealer (franchise) | $50,000 |
| Used Motor Vehicle Dealer | $25,000 |
| Wholesale Motor Vehicle Dealer | $25,000 |
| Motor Vehicle Auction | $50,000 |
| Boat Dealer | $25,000 |
| RV Dealer | $50,000 |
The bond protects buyers, lienholders, and the State of Missouri from financial loss caused by dealer violations of Chapter 301.
Missouri requires used vehicle dealer applicants to complete an 8-hour pre-licensing course at a state-approved provider.
Premiums vary with bond amount and credit. Most used dealers pay $250–$500/yr; new and franchise dealers pay $500–$1,000/yr for the larger bond:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| $25,000 bond, strong credit | $250 – $375 | 1% – 1.5% |
| $50,000 bond, strong credit | $500 – $750 | 1% – 1.5% |
| $25,000 bond, fair credit | $625 – $875 | 2.5% – 3.5% |
| $50,000 bond, fair credit | $1,250 – $1,750 | 2.5% – 3.5% |
| Any tier, challenged credit | Up to 5% of bond | 3% – 5%+ |
Missouri dealer bonds run annually with the dealer license. The DOR mails renewal notices 60 days before expiration. Bond cancellation results in license suspension within 30 days; reinstatement may require a new bond and may trigger additional state review.
The state's risk model assumes franchise dealers transact at higher dollar volumes per sale (new vehicles vs. used) and consequently expose consumers and the state (sales tax) to larger potential harm.
Yes — Missouri treats RV dealers similarly to new motor vehicle dealers because RV sales are often high-dollar transactions, and historical claims data justified the higher amount.
Generally no — each license type requires its own bond at the corresponding amount. Combined-license operations may need multiple bonds or one bond at the highest required amount.
Even short lapses can result in DOR suspension. Contact your surety immediately if you receive a cancellation notice; reinstatement before lapse is far easier than restoration after.
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