What Is the Missouri Motor Vehicle Dealer Bond?
The Missouri motor vehicle dealer bond stands behind your dealership. If you wrong a customer, they can file a claim. The surety covers it, and you repay the surety.
What you post in Missouri:
- New car (franchise) dealers: $50,000.
- Used car dealers: $25,000.
Who Needs This Bond in Missouri?
- Dealers who sell to the public in Missouri must post the bond to be licensed.
- Wholesale and auction dealers are usually covered too.
- You renew the bond with your license.
How Much Will the Bond Cost?
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%+ |
How to Get Bonded — Step by Step
- Start your Missouri dealer license application.
- Get your bond here. Most quotes come back fast.
- Send the bond to the Missouri Department of Revenue.
- Get your license and start selling.
Renewal & Continuous Bond Coverage
Plan to renew your Missouri dealer bond every year. Line it up before the deadline so your license never drops.
Frequently Asked Questions
Is the Missouri bond different for used dealers?
Yes. New car (franchise) dealers post $50,000; used car dealers post $25,000.
Does the Missouri bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you repay the surety. The bond is not your own insurance.
How fast can I get bonded in Missouri?
Most quotes come back fast, often within a day. Many bonds are issued the same day for good credit.
How much does the bond cost?
You pay a yearly premium — a small percent of the bond amount. Good credit means a lower rate.
How a Surety Bond Works
A dealer bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.
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Start Your ApplicationRelated: All Missouri surety bonds · What is a surety bond? · How surety bond costs are calculated