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How Much Does a Kansas Motor Vehicle Dealer Bond Cost?
The cost of a motor vehicle dealer bond in Kansas is between $500 and $5,000. The state requires dealers to hold a $50,000 surety bond to maintain a license to do business. Rather than paying the full surety bond amount, you can purchase your bond at a premium rate.
We are an authorized Kansas surety company that provides bonds at a rate of 1% to 10% of the bond amount. Our company has served Kansas customers for more than 10 years with our efficient, easy process.
When you apply for your new motor vehicle dealer bond, your rate will be determined by your professional experience, credit rating and financial assets. We have bonded over 99% of our applicants, and we work with most credit scores.
A premium rate between 1% and 3% is offered to applicants with a 700 credit score or better. A rate of 3% to 5% is available to those with a 600 to 699 credit score. Applicants with a 599 credit score or below will receive a premium rate of 5% to 10%.
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Surety Bond Cost Based on Credit Score |
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|
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
|
Kansas Vehicle Dealer Bond |
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
How to Get a Kansas Motor Vehicle Dealer Bond
1. Apply for Your Kansas Motor Vehicle Dealer Bond
It only takes a couple of minutes to apply for your new vehicle dealer bond in Kansas. You can tell us more about your bond needs and your qualifications when you complete the online application.
Sean had plans to sell a fifth vehicle this calendar year in Topeka soon, so he needed to get licensed and bonded as a vehicle dealer. He appreciated our fast, online process and quickly bought the necessary bond. This allowed him to finalize his Kansas dealer license application right away.
2. Review Your Motor Vehicle Dealer Bond Quote
We provide instant, no-obligation bond quotes to our valued Kansas customers. Immediately after submitting the application online, you can review your quote. If your vehicle dealer bond application is complicated, you will receive your quote in 48 hours or less.
3. Pay the Premium Online
To complete your Kansas motor vehicle dealer bond purchase, make your premium payment using our online portal. Your bond will then be processed and emailed to you quickly. If requested, we are also happy to mail your surety bond to you.
We strive to provide each of our customers with a hassle-free bond buying experience. If you require assistance with your application or have questions for our bond experts, contact us or call us at (877) 514-5146.
Motor Vehicle Dealer License Bond Requirements in Kansas
The Kansas Department of Revenue Division of Vehicles processes vehicle dealer license applications and monitors compliance. A dealer license is required when five or more vehicles are sold within a calendar year. It is also required when a vehicle is bought with the intention of selling it for profit.
The dealer license and bond requirements are established under Kansas Revised Statute 8-2404. The bond must be in the amount of $50,000, and the obligee is the State of Kansas.
The Kansas motor vehicle dealer bond runs continuously regardless of the aggregate sum of claims against it. The bond can only be canceled by providing a 30-day written notice to the Kansas Department of Revenue Division of Vehicles.
How to Renew & Maintain Your Motor Vehicle Dealer Bond in Kansas
A Kansas motor vehicle dealer bond is continuous, so it will remain in force until it is canceled. Your surety company may cancel your bond if the premium is not paid annually. This can result in the suspension of your Kansas dealer license.
To assist you with the maintenance of your bond, we will contact you annually with premium payment instructions.
What Happens If Someone Files a Claim in Kansas?
When making a claim against your Kansas motor vehicle dealer bond, the claimant must do so directly with your surety company. After conducting a thorough investigation, the surety company will determine if the claim is valid. The claim will be denied if it cannot be substantiated.
If the claim is verified through the investigation, the surety company will pay the claimant up to the bond’s penal sum. Then, you are liable for reimbursing the surety company for the full sum of the payment.
How to Get Your Motor Vehicle Dealer License in Kansas
To apply for a motor vehicle dealer license, you must submit the required documentation to the Kansas Department of Revenue Division of Vehicles. We are available to answer your questions as well, and you can learn more through our Kansas dealer license guide.
When applying for a dealer license, you must provide:
- Application form
- Surety bond
- Certification of Tax Clearance
- An established place of business with an operable telephone and proper signage
- A sales tax registration number
- Zoning compliance
- Three credit references
- Articles of Incorporation
- Insurance coverage for the inventory and the place of business
For additional information and to submit the documentation, contact:
Kansas Department of Revenue Division of Vehicles
Dealer Licensing Bureau
P.O. Box 2369
Topeka, KS 66601-2369
Phone: (785) 296-3621
It's FREE. No Obligations. Approval in Minutes.
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What Our Clients Have To Say?
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!