Missouri Auto Dealer Bond

1. Apply For Your Bond Online

We strive to make the bonding process as simple and efficient as possible. Using our online application form, you just have to submit some information about yourself and your dealer business. 

We recently helped an auto dealer in St. Louis get his bond. He was frustrated with the licensing process and just wanted to get bonded as fast as he could. We helped him secure a surety bond with the right amount so he could finish processing his license paperwork and get back to selling cars to his customers. 

2. Receive Your Bond Quote

In most cases, we can process your application in a few minutes. However, there are times when you might have to wait up to 24 or 48 hours. Regardless of the length of time, we guarantee you’re getting the best quote for your bond. 

3. Pay The Premium

Once you pay for your bond, we’ll email it to you. Typically, auto dealer bonds are valid for up to one year, but that can depend on the situation. We can also mail you a hard copy of the bond if necessary. 

Missouri has two unique auto dealer bond requirements. First, all auto dealers must secure a $50,000 bond to do business if they sell more than eight vehicles in a year. Dealers who specialize in power sports vehicles (e.g., ATVs and dirt bikes) or watercraft have a different license requirement, but the bond amount is the same. 

The second requirement is a $100,000 bond for auto dealers who deliver vehicles or trailers to the purchaser directly. In this case, the dealer and the purchaser agree to transfer the title of ownership within 30 days of the sale date.

Auto dealer licenses expire on December 31st every year, regardless of when they were issued. Because you need a valid bond to renew your license, you’ll have to secure a new bond by December 31st. The new bond must be valid until the same date in the following year for your license renewal to get approved. 

Lance Surety Bonds will send reminders well before the expiration date, so there’s never a lapse in protection.

The purpose of a surety bond is to protect consumers from fraudulent businesses. As an auto dealer, it’s your responsibility to be transparent about every vehicle you sell. In the event of a bond claim, here’s what happens: 

First, the claimant files a bond claim with the surety company. The surety investigates the claim to determine if it’s valid. If the claim is valid, the surety will pay the claimant up to the full bond amount. 

As the bond's principal, you’re liable to reimburse the surety company for any payments made to the claimant.

While Missouri only has a couple of different bond requirements for motor vehicle dealers, there are many different types of license options. The first step in knowing how to get a Missouri auto dealer license is to know which one you need. 

Some examples of these licenses include: 

• Franchise Motor Vehicle Dealer
• Public Motor Vehicle Auctions
• Recreational Motor Vehicle Dealer
• Trailer Dealer
• Wholesale Motor Vehicle Dealer
• Boat Dealer

You can find out more about the requirements for licensing from the Missouri Department of Revenue.