Mississippi Designated Agent Surety Bond
Motor vehicle dealers in Mississippi need a designated agent bond and a license to operate a dealership. Dealers that are required to be licensed include franchise/new dealers, motorcycle dealers, trailer dealers, wholesale dealers, used dealers (also known as car or auto dealers), vehicle dismantlers, vehicle manufacturers, heavy truck dealers, and limited dealers. Vehicle types sold include motor vehicles, tractor, trailers, and semitrailers.
Surety Bond and License Requirements:
- Dealers can apply for a license through the Mississippi Department of Revenue (also known as the DOR), Motor Vehicle Services.
- Complete the eight-hour dealer training conducted by the Mississippi Independent Auto Dealers Association (MIADA). Attach the Certificate of Completion obtained from attending the class along with the application. (The certificate must have been obtained no later than the previous 12 months prior to submitting the application).
- Complete the application and pay the permit and tag fee (Dismantlers do not need to pay a tag fee).
- Obtain a $15,000 designated agent surety bond for the dealer license. The original surety bond must be signed and returned with the application.
- Obtain liability insurance blanket coverage. Provide a copy of the policy with the application and with each license renewal.
- Distmantlers must complete the Dismantler Affidavit and submit with the license application.
- Applicants must obtain a sales tax number through the Mississippi Department of Revenue.
- Wholesale dealers must be Mississippi Residents and can only maintain an inventory of two vehicles, have only one wholesale dealer tag and is not required to have a physical business location.
- Vehicle dealers must have an established place of business that has an office, a place to store records, and offers reasonable hours of operation.
- Dealers must track their daily tags issued.
How Much Will This Bond Cost?
The premium that you pay depends on a variety of factors which can include credit score, length of time in the business and number of business locations.
Related Links:Mississippi Dealer License InformationMississippi Motor Vehicle Dealer License PacketMississippi Motor Vehicle Dealer Regulations
More Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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