Get An Instant Quote on Minnesota Motor Vehicle Dealer Bonds Now
| Minnesota – NEW Motor Vehicle Dealer ($5,000) Bond |  |
| Minnesota – NEW Motor Vehicle Dealer ($50,000) Bond | |
| Minnesota – USED Motor Vehicle Dealer ($5,000) Bond | |
| Minnesota – USED Motor Vehicle Dealer ($50,000) Bond | |
Introduction
A Motor Vehicle Dealer in Minnesota is a licensed individual or business authorized to sell, lease, or wholesale new or used motor vehicles. Dealers must obtain a license through the Minnesota Department of Public Safety – Driver and Vehicle Services (DVS) and comply with state laws governing advertising, titling, and vehicle sales practices. A key licensing requirement is securing a Motor Vehicle Dealer Bond to protect consumers and ensure legal compliance.
Explanation: Minnesota Motor Vehicle Dealer Bond
A Minnesota Motor Vehicle Dealer Bond is a type of surety bond required by the Minnesota Department of Public Safety – Driver and Vehicle Services (DVS) for individuals or businesses engaged in the sale, lease, or wholesale of motor vehicles in the state.
Purpose of the Bond:
The bond is aimed to safeguarding the people and the state from financial damage due to:
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Fraudulent activities
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Failure to pay fees or taxes
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Non-compliance with licensing laws under Minnesota Statutes Chapter 168 or 325F
If a licensed dealer violates these laws, a claim can be made against the bond to repay affected parties.
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Who Needs This Bond?
All applicants for a Minnesota motor vehicle dealer license, including:
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New and used car dealers
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Wholesalers
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Brokers
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Lease or auction dealers
Parties to the Bond:
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Principal – The motor vehicle dealer
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Obligee – Minnesota Department of Public Safety (DVS)
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Surety – The bonding company issuing the bond
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Process of getting the Minnesota Motor Vehicle Dealer Bond
Here is a step-by-step process to obtain the Minnesota Motor Vehicle Dealer Bond:
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Determine Bond Amount
Most dealers need a $50,000 bond (some may only require $5,000). -
Choose a Licensed Surety Bond Provider
Select an authorized company that issues bonds in Minnesota. -
Complete the Bond Application
Provide business details, ownership info, and financial data. -
Undergo Credit Check
Your credit will help determine the bond premium. -
Pay the Premium and Receive the Bond
After approval, pay the premium (typically 1–5% of the bond amount) and obtain your bond. -
Submit Bond with Dealer License Application
File the original bond with your completed license application to the Minnesota DVS. -
Renew Annually
Maintain and renew your bond each year to stay compliant.
Conclusion
The Minnesota Motor Vehicle Dealer Bond is a vital licensing requirement that safeguards consumers and ensures dealers comply with state laws. By securing this bond, dealers demonstrate financial responsibility and build trust with both the public and the Minnesota Department of Public Safety. Maintaining an active bond is essential for continued legal operation in the state.
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Frequently Asked Questions (FAQs)
Here are some frequently asked questions (FAQs) about the Motor Vehicle Dealer Bond in Minnesota:
Can I get denied a bond due to poor credit?
Possibly. Some sureties may reject applicants with low credit scores, while others may approve with higher premiums or collateral requirements.
What happens if I let my bond lapse or cancel it?
Your dealer license may be suspended or revoked if the bond is not active. You must maintain continuous bond coverage to legally operate.
Can the bond be transferred to a new business owner?
No. The bond is not transferable. A new owner must obtain a new bond in their name or entity when taking over the dealership.
Can a claim be filed against my bond?
Yes. If you violate state laws—such as failing to pay title fees or engaging in fraudulent sales—consumers or the state can file a claim against your bond for financial damages.
Do I need a bond if I’m renewing my license?
Yes. The bond must be active and renewed annually as part of your dealer license renewal process.
Is the bond requirement the same for all types of dealers?
Generally yes, but lower bond amounts apply to limited dealers such as those only selling trailers, mopeds, or snowmobiles. Confirm your specific bond amount with the Minnesota DVS.