Mississippi Auto Dealer Bond

A Mississippi auto dealer bond, also known as motor vehicle dealer bond, can cost as low as $250, depending on your credit score. In Mississippi, new motor vehicle dealers are required to post a $25,000 bond for a single location. If you operate multiple locations, the bond amount increases to $100,000. For used motor vehicle dealers, a bond of $15,000 is required. 

While the bond amount is $25,000 for new motor vehicle dealers, you will only have to pay a fraction of that as a bond premium. If you have a good credit score, you can expect to pay between 1% and 3% of the total amount. Here’s a rundown of how the premium price can change based on your credit score. 

Apply Online for a Bond Quote

Lance Surety Bonds makes it easy to get bonded when applying or renewing your motor vehicle license. We just need you to submit some basic information about yourself and your business with our online application form. 

We recently helped a motor vehicle dealer in Biloxi get bonded. Our client was frustrated about the hassle of getting his license, but he appreciated how easy we made it to get his bond. 

Receive Your Bond Quote

Usually, we deliver the best bond premium quote quickly. However, you may have to wait between 24 and 48 hours if it is a more complicated case. We guarantee that you’re getting the best quote possible.

Pay the Bond Premium

Once you pay the premium, we’ll send your bond via email. If requested, we can also mail a hard copy to you.

New motor vehicle dealers fall under the jurisdiction of the Mississippi Motor Vehicle Commission. They are required to secure a $25,000 Bond of New Motor Vehicle Dealer. However, if new dealers operate across multiple locations, the bond requirement increases to $100,000 to cover all their locations.

Used and wholesale motor vehicle dealers in Mississippi are regulated by the Mississippi Department of Revenue. These dealers must post a $15,000 Bond of Designated Agent (for Motor Vehicle Dealers) to comply with state regulations.

For renewal process within Mississippi Motor Vehicle Commission, If your license was issued in December, it’s valid through the following year. Otherwise, you have to submit all of your business information (including a valid surety bond) to renew your license. Renewals will open on November 1st of each year.

We’ll send you a reminder long before your renewal date (licenses are valid for up to one year). This way, you can make sure your bond is valid before submitting the paperwork. 

Should a customer file a claim against your surety bond, the process works like this: 

• The customer files a claim with the surety directly. 
• The surety company investigates the claim to determine its validity.
• If the claim is valid, the surety pays the claimant up to the full bond amount. 
• If the surety pays the bond, you’re responsible for reimbursing the surety for the full amount.

Mississippi has different licensing requirements depending on which type of motor vehicle dealer you are. To apply for a Mississippi motor vehicle dealer license, you must provide:

• Choose Your License Type (New Vehicle Dealer, Used Vehicle Dealer, or Wholesale Dealer.)
• Owner and business information.
• Business location with appropriate facilities (for new and used dealers).
• Attend a dealer education seminar (for used and wholesale dealers).
• Provide a franchise agreement (for new dealers).
• Obtain motor vehicle liability insurance (for used and wholesale dealers).
• Post a surety bond.

Mail the used motor vehicle dealer licensing documents to:

Mississippi Motor Vehicle Commission
1755 Lelia Drive, Suite 200
Jackson, MS 39216

Or through MMVC website, if you’re a new motor vehicle dealer.