Motor Vehicle Dealers - Used Vehicles Only

The Motor Vehicle Dealer Bond is a surety bond required by the State of Missouri for businesses engaged in buying, selling, or dealing in motor vehicles. This bond ensures that dealers operate in accordance with Missouri state laws and regulations governing motor vehicle sales.

Who Needs This Bond: All motor vehicle dealers operating in Missouri must obtain this bond as part of their licensing requirements. This includes both franchise dealers (Class 3) and independent dealers (Class 4) who deal exclusively in used vehicles. Different application requirements apply based on dealer classification, with franchise dealers needing a signed application with business and personal indemnity plus a clean credit report, while other dealers additionally require business and personal financial statements.

Protection and Coverage: The $50,000 bond protects the State of Missouri and consumers from financial losses resulting from the dealer's failure to comply with state motor vehicle laws, fraudulent practices, or breach of contract. If a dealer violates regulations or causes financial harm to customers, claims can be made against the bond to compensate affected parties.

Term and Renewal: This bond has a one-year term and is renewable annually. Dealers must maintain continuous bond coverage to keep their license active. Note that lease or rental companies dealing in motor vehicles, trailers, boats, or outboard motors require a higher bond amount of $100,000.