Motor Vehicle Dealers - Used Vehicles Only

The State of Kansas Vehicle Dealer Bond is a surety bond required for used vehicle dealers operating in Kansas to obtain and maintain their dealer license. This bond serves as a financial guarantee that the dealer will conduct business in accordance with Kansas state laws and regulations governing motor vehicle sales.

Used vehicle dealers in Kansas must obtain this bond as part of their licensing requirements. The bond amount is $50,000 effective January 1, 2022 (previously $30,000). New and franchised dealers may be considered under different underwriting criteria than used dealers, with used dealers typically requiring more extensive documentation including financial statements.

This bond protects the State of Kansas and consumers who purchase vehicles from licensed dealers. If a dealer engages in fraudulent practices, fails to transfer titles properly, or violates other state regulations, affected parties can file claims against the bond for financial compensation up to the bond amount. The bond ensures that consumers have recourse if they suffer financial losses due to the dealer's misconduct.

The bond term is one year and is renewable annually. Dealers operating multiple locations under the same license and dealer number can add supplemental locations through endorsements to their existing bond rather than purchasing separate bonds for each location.