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Do Missouri Motor Vehicle Dealers Need to Have a Surety Bond for Licensure?

A Missouri Motor Vehicle Dealer shakes hands with customers

Motor Vehicle Dealers in Missouri are required to have a license and a Vehicle Dealer Surety Bond. Vehicle dealers that are required to be licensed include new/franchise and used motor vehicle dealers (including car dealers and auto dealers), public and wholesale auction dealers, recreational vehicle dealers, cycle or power sport dealers, trailer dealers, boat dealers, and emergency vehicle dealers.

License requirements are as follows:

Complete the Dealer Education Seminar and submit the certificate of completion with the application.

Complete the application and pay the license and dealer plate fees. Applicants must be able to pass a criminal background check.

New / franchise dealers must provide a copy of the franchise agreement.

Provide photos or the dealer lot, building, and signage.

Dealers must establish a business location that has a permanently enclosed building, a working telephone (can not be a cell phone), a display area, permanent signage with lettering that is at least 6" in height, regular business hours posted (a minimum of 20 hours per week and Monday thru Saturday), and a place to store records.

Obtain garage liability insurance coverage and provide a copy to submit with the application.

Applicants must register their business with the Missouri Secretary of State. A copy must be submitted if using a dba or trade name for the business signage.

Multiple dealer locations requires a separate application and license.

A surety bond is required for licensing as follows:

$25,000 surety bond for new and used motor vehicle dealers, boat and power sport dealers, trailer dealers and emergency vehicle dealers.

$100,000 surety bond for dealers who intend to sell vehicles that do not have a title and special event motor vehicle auctions.

Instead of a surety bond, dealers can post an irrevocable letter of credit of equal value.

Licenses and surety bonds expire December 31 of each year.

Other rules and requirements apply (see the Missouri Dealer Operating Manual).

How Much Will This Bond Cost?

The premium that you pay for a Missouri Motor Vehicle Dealer Surety Bond is dependent on credit, bond amount required and experience in vehicle sales industry.

Have Questions?

Contact our Surety Bond Specialists at:

Phone: 1‑844‑432‑6637
Fax:     404-351-3237
Hours: 8:00-5:00 CST, Monday through Friday

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