1. Start Your Application
2. Receive Your Free Quote
3. Buy Your Surety Bond
How Much Does a Kentucky Auto Dealer Bond Cost?
The cost of a Kentucky auto dealer bond is between $1,000 and $10,000. The required bond amount is $100,000.
Kentucky dealers can purchase the necessary bond through an authorized surety company. When you buy your auto dealer bond, also known as motor vehicle dealer bond from our respected surety company, you will pay a premium of 1% to 10% of the bond amount rather than the full amount.
Factors such as the applicant’s financial assets, credit rating and professional resume determine the premium rate. We provide Kentucky surety bonds to customers with most credit scores. More than 99% of bond applicants qualify through our company.
The Kentucky bond premium rate falls between 1% and 3% for those with a 700 or higher credit score. The rate is between 3% and 5% with a 600 to 699 credit score. A 5% to 10% bond premium rate is available for applicants with lower credit scores.
Surety Bond Cost Based on Credit Score |
||||
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
Kentucky Motor Vehicle Dealer Bond |
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
How to Get a Kentucky Motor Vehicle Dealer Bond
1. Apply for Your Motor Vehicle Dealer Bond
To begin our straightforward bonding process, fill out the online application. Buying your surety bond is an essential step in motor vehicle dealer licensing. Our bond application requires a few minutes of your time, allowing you to complete your dealer licensing application quickly.
Jordan was eager to buy a bond and submit the paperwork for a Kentucky dealer license. Within a few minutes, he completed the bond application and got an instant quote. By using our online portal, Jordan completed the bond purchase quickly and finalized his license application.
2. Review Your Quote
Our customers benefit from our expedited bond process. In fact, most of our Kentucky bond applicants instantly receive a quote after completing the online application. If an application requires greater review, we will issue a quote in less than 48 hours.
3. Pay the Premium Online
When you are ready to buy your Kentucky motor vehicle dealer bond, complete the payment process through our online portal. Your bond will be prepared and emailed to you without delay. Upon request, we are happy to mail the motor vehicle dealer bond to you as well.
We are available to answer your questions about Kentucky auto dealer bonds and help you set up your bond. For assistance, please contact us or call us at (877) 514-5146.
Motor Vehicle Dealer Bond Requirements in Kentucky
In Kentucky, the motor vehicle dealer bond is $100,000 for most types of dealers. The bond requirement for auction dealers varies, however. The Kentucky Motor Vehicle Commission will notify the auction dealer of its required bond amount.
License requirements apply to dealers of new and used vehicles, motorcycles, recreational campers, wholesale vehicles and mobility vehicles. In addition, a license is needed for vehicle leasing.
The obligee for an auto dealer bond is the Kentucky Motor Vehicle Commission. The bond expires annually and must be renewed in order to maintain the motor vehicle dealer license.
How to Renew & Maintain Your Auto Dealer Bond in Kentucky
A Kentucky auto dealer bond is valid for 12 months. Prior to the expiration date, the dealer should take steps to renew the bond. The bond may also be canceled by the surety company if the surety provides a 30-day written notice to the Kentucky Motor Vehicle Commission.
As your bond expiration date approaches, we will be in touch with renewal instructions. The renewal premium can be paid on our website for your convenience.
What Happens If Someone Files a Claim in Kentucky?
To file a claim against your dealer bond, the claimant must do so directly with the surety company. The Kentucky surety company will complete an investigation to determine the validity of the claim. If the claim is not substantiated through the investigation, the claim against your bond is denied.
If the claim is substantiated, the surety company will pay the claimant up to the full amount of the bond’s penal sum. The dealer is then liable for reimbursing the surety company for the full amount paid to the claimant.
How to Get Your Auto Dealer Bond in Kentucky
We are available to help you learn how to get a Kentucky dealer license. The licensing authority, the Kentucky Motor Vehicle Commission, is also an excellent resource. License application requirements include:
- Application form
- Surety bond
- An established place of business that meets licensing requirements
- Business signage (except for wholesale dealers)
- A business name
- Financial statement
- Liability insurance certificate
- Franchise agreement, if applicable
- Application fee for each type of dealer license, payable to the Kentucky State Treasurer
For more information and to submit the required documentation, contact:
Kentucky Motor Vehicle Commission
105 Sea Hero Road, Suite 1
Phone: (502) 573-1000
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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!