Minnesota Auto Dealer Bond

Complete Guide to Bonding a Car Dealership

Customer Reviews

1. Start Your Application

Fill out the online application form

2. Receive Your Free Quote

You will be sent your quote in minutes

3. Buy Your Surety Bond

We offer secure payment options
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    Easy online application for your Minnesota auto dealer bond
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    Specialists in auto dealer bonding
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    Bad credit? No problem.

How Much Does a Minnesota Motor Vehicle Dealer Bond Cost?

The cost of a motor vehicle dealer bond in Minnesota ranges from $500 to $5,000. The surety bond requirement for dealers is $50,000. However, you do not need to pay the full price of the bond. 

Through an authorized surety company in Minnesota, you can pay a premium of 1% to 10% of the required bond amount. The rate that you qualify for is based on your credit score, your professional experience and your assets. We offer surety bonds to applicants with credit scores below 599.

Well-qualified customers with a credit score of 700 or higher receive a premium rate of 1% to 3%. Customers with a score of 600 to 699 will receive a premium rate of 3% to 5%. The rate for applicants with a credit score of 599 or lower is 5% to 10%.

Surety Bond Cost Based on Credit Score

Surety Bond Name

Surety Bond Amount

Over 700

Between 600 - 699

Below 599

Minnesota Motor Vehicle Dealer Bond

$50,000

$500 - $1,500

$1,500 - $2,500

$2,500 - $5,000 

* This table provides a ballpark estimate of potential bond costs. Bond pricing can fluctuate over time due to a number of factors. For exact pricing, please complete an application.

How to Get a Minnesota Motor Vehicle Dealer Bond

1. Apply for Your Bond

Buying a motor vehicle dealer bond in Minnesota, also known as auto dealer bond, is a fast process that begins when you complete the online application. With a variety of bond programs offered, more than 99% of our customers qualify for the bond they need.

Kara recently got in touch with us to buy a dealer bond. She applied for her new bond online and received a quote soon after submitting the application. Kara finalized her purchase by paying the premium online. After we emailed the bond to her, she completed her license application. 

2. Get a Quote

It only takes a couple of minutes to apply for a bond online. After doing so, you could get an immediate, no-obligation quote from us. If your situation is more complex, you will get a bond quote within 48 hours. 

3. Purchase Your Bond

Completing your motor vehicle dealer bond purchase is equally easy to do. Through our online payment portal, you can make your payment at your convenience. We will email the bond to you after receiving the payment. If requested, we can also mail your bond to you. 

We strive to provide an easy, fast process for our customers. If you have questions or challenges when setting up your bond, our friendly experts are ready to help. Contact us or call us at (877) 514-5146.

Motor Vehicle Dealer Bond Requirements in Minnesota

A Minnesota motor vehicle dealer license is required for those who sell or lease more than five vehicles in a 12-month period. This includes new and used motor vehicles. Licensing is also required for consignment, used auto parts and scrap metal sales.

The license requirements are established by Rule 447400.010-6000 and Statute 168.27. The bond amount of $50,000 is required to apply for and maintain a dealer license in Minnesota.

The Minnesota Department of Public Safety is the authority on motor vehicle dealer licenses and bonds and should be listed as the bond’s obligee. The form must be signed by the surety company’s agent and the principals, and it must be notarized.

How to Renew & Maintain Your Motor Vehicle Dealer Bond in Minnesota

To prevent the suspension of your dealer license in Minnesota, you must maintain your surety bond. The bond may run continuously or have a fixed expiration date. 

For both continuous and fixed term lengths, you are responsible for paying the bond premium annually. We will notify you about the renewal options and process each year.

The bond may be canceled by the surety company with a 30-day written notice. If the bond is canceled, it must be replaced before the cancellation date to avoid a license suspension.

What Happens If Someone Files a Claim in Minnesota?

If someone files a claim against your business in Minnesota, the claim will be made directly to the surety bond company. Through an investigation, the surety company will determine the validity of the claim. The claim is denied if the surety company cannot validate it. 

If the claim is determined to be valid, the surety company pays the claimant. The maximum payment is the penal sum of the bond. The Minnesota dealer is then responsible for fully reimbursing the surety company.

How to Get Your Motor Vehicle Dealer License in Minnesota

The Dealer Unit of the Minnesota Department of Public Safety is responsible for processing motor vehicle dealer license applications. When learning how to get a Minnesota dealer license, there are several required documents. These include:

Motor Vehicle Dealer License Fees

Dealer License

$250

DSB License (Boat, Snowmobile, Horse Trailer, Motorized Bicycles)

$10

Demo Plates

$85

In-Transit Plates

$15

Scrap Metals Dealer

$275

Used Vehicle Dealer

$275

Motor Vehicle Wholesaler

$275

 

For more information, contact:

Dealer Unit – Department of Public Safety
445 Minnesota St., Suite 186
St. Paul, MN 55101-5186
Phone: (651) 201-7800


Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

What Our Clients Have To Say?

Kimberlee Ables

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!

Andrew Poincot

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!

Margie Martinez

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!

Kimberlee Ables

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!

Andrew Poincot

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!

Margie Martinez

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!