Missouri Auto Dealer Bond

The licensing body for Missouri auto dealers is the Motor Vehicle Bureau at the Department of Revenue. Getting a Missouri auto dealer license entails posting a $50,000 security. It is needed for getting a license as a dealer, auctioneer and manufacturer. You have to provide the irrevocable letter of credit or surety bond together with your official license application. The security instrument ensures your compliance with Chapter 301 of the Missouri Revised Statutes.

Obligee Information:
Missouri Motor Vehicle Bureau
Department of Revenue
PO Box 43
Jefferson City, MS 65105-0043

The bond amount you have to obtain when getting licensed as a Missouri dealer is $50,000. The surety bond cost that you have to pay depends on this bond amount. In order to get bonded, you have to cover a bond premium, which is typically in the range of 1%-3%.

The percentage you have to pay is set on the basis of your personal and business finances. Your surety has to consider your personal credit score, business finances, assets and liquidity, and even professional experience. In this way, it can judge the level of bonding risk. The more stable your finances are, the smaller your bond premium is likely to be.

Lance Surety Bonds operates its Bad Credit Surety Bonds program for dealers with low credit scores, tax liens, bankruptcies, and civil judgements. If you are facing such issues, this program may be the right choice for you.

The bond premiums you can expect are around 5%-10%. The slightly higher percentages are needed in order to compensate for the increased bonding risk. We work with a number of A-rated, T-listed surety companies, so we can still shop around for a top bond option for your particular circumstances.

Our How to Get Bonded page is an excellent resource on how bonding works, so you can consult it for further information. For any questions, just call us at (877) 514-5146. We’re happy to assist you.

The surety bond you have provided protects your customers against potential fraudulent activities you may commit in your capacity as an auto dealer. If a party suffers damages as a result of your actions, they can file a claim against your bond. The maximum reimbursement they can seek is the penal sum of your bond, which is $50,000.

The claim, if proven, may be covered at first by your surety. In this way, the harmed party receives a fast compensation. You have to repay the surety soon after, as per the conditions in your bond indemnity agreement. Bond claims, thus, are a financial threat to your business, so it’s best to avoid them as much as possible.