Motor Vehicle Dealers - New or New and Used Vehicles

The Bond of New Motor Vehicle Dealer is a surety bond required by the State of Mississippi for businesses that sell new motor vehicles or both new and used vehicles. This bond is a mandatory requirement for obtaining and maintaining a motor vehicle dealer license in Mississippi.

New motor vehicle dealerships must obtain this bond as part of their licensing process. The bond ensures that dealers operate in compliance with state laws and regulations governing motor vehicle sales, including proper handling of titles, warranties, and consumer transactions.

The bond protects the State of Mississippi and consumers from financial losses that may result from the dealer's failure to comply with applicable laws, fraudulent business practices, or breach of contract. If a dealer violates state regulations or causes financial harm to customers, claims can be made against the bond to provide compensation.

This bond requires a $25,000 coverage amount and has a one-year term. The bond is renewable annually to maintain continuous licensing. Applicants must submit a signed application with business and personal indemnity agreements and provide a clean credit report as part of the underwriting process.