Missouri Motor Vehicle Dealer Bond

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Missouri – NEW Motor Vehicle or Boat Dealer’s License ($50,000) Bond
Missouri – Motor Vehicle or Boat Dealer’s License ($100,000) Bond
Missouri – USED Motor Vehicle or Boat Dealer’s License ($50,000) Bond
Missouri – Motor Vehicle or Marine Craft Leasing ($100,000) Bond

Introduction

The Missouri Motor Vehicle Dealer Bond is a mandatory surety bond required by the Missouri Department of Revenue (DOR), Motor Vehicle Bureau for anyone applying for a dealer license to sell new, used, wholesale, or recreational vehicles in the state. Required under Section 301.560 of the Missouri Revised Statutes, this bond ensures that licensed dealers comply with state laws, conduct honest business practices, and protect consumers and the state against fraud, misrepresentation, or failure to transfer valid titles.

Explanation: Missouri Motor Vehicle Dealer Bond

The Missouri Motor Vehicle Dealer Bond is a type of surety bond required by the Missouri Department of Revenue (DOR), Motor Vehicle Bureau, for individuals or businesses applying for a motor vehicle dealer license in the state.

Under Missouri Revised Statutes, Section 301.560, licensed motor vehicle dealers are required to file and maintain this bond as a condition of doing business.

The bond serves as a financial guarantee that the dealer will:

• Comply with Missouri laws and regulations governing vehicle sales.

• Properly transfer titles and pay all associated fees and taxes.

• Avoid fraudulent, deceptive, or unethical practices in the sale of vehicles.

If a dealer engages in misconduct such as failing to deliver a valid title, misrepresenting a vehicle, or violating state dealer laws, a claim may be filed against the bond. The surety company would compensate affected parties (such as consumers or the state), and the dealer would be responsible for reimbursing the surety.

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Key Points:

• Required by the Missouri Department of Revenue, Motor Vehicle Bureau.

• Mandated under Section 301.560, RSMo.

• Protects consumers and the state against fraudulent practices or failure to meet legal obligations.

See our Missouri Dept. of Revenue – Motor Fuel Tax Bond.

Process of Getting the Missouri Motor Vehicle Dealer Bond

Here’s a detailed process for obtaining the Missouri Motor Vehicle Dealer Bond:

1. Apply for a Missouri Dealer License

   • Begin by submitting an application to the Missouri Department of Revenue (DOR), Motor Vehicle Bureau for a motor vehicle dealer license.

   • The bond is a required part of this licensing process.

2. Determine Bond Requirement

   • Missouri law (RSMo §301.560) requires a surety bond for motor vehicle dealers.

   • This applies to new, used, wholesale, and boat dealers.

3. Contact a Licensed Surety Bond Provider

   • Reach out to a surety bond company or licensed insurance agency authorized in Missouri.

   • Provide business and personal information, including ownership structure and financial background.

4. Underwriting and Premium Quote

   • The surety company evaluates your creditworthiness and business history.

   • You will be quoted a bond premium, usually % of the bond amount annually, depending on credit and financial strength.

5. Purchase the Bond

   • Once approved, pay the quoted premium to secure the bond.

   • The surety issues the official Missouri Motor Vehicle Dealer Bond on the required form.

Conclusion

The Missouri Motor Vehicle Dealer Bond is a vital requirement that safeguards consumers and the State of Missouri by ensuring licensed dealers operate with integrity and comply with all legal obligations. By maintaining this bond, dealers demonstrate financial responsibility, protect their customers, and uphold the trust necessary to conduct business legally within Missouri.

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Frequently Asked Questions (FAQs)

Here’s a Frequently Asked Questions (FAQ) section for the Missouri Motor Vehicle Dealer Bond:

What happens if a dealer violates state laws or regulations?

If a dealer fails to meet legal obligations (e.g., not transferring titles, committing fraud, or failing to pay fees), a claim may be filed against the bond. The surety pays valid claims, and the dealer must reimburse the surety company.

How long must the bond be kept in place?

The bond must remain active for the entire duration of the dealer’s licensed business operations and must be renewed annually to maintain good standing with the Missouri DOR.

How often does the Missouri Motor Vehicle Dealer Bond need to be renewed?

The bond must be renewed annually along with the dealer license to remain in compliance with the Missouri Department of Revenue (DOR).

What happens if the bond lapses or is terminated?

If the bond is not renewed or is canceled, the dealer cannot legally continue business operations, and their license may be suspended until a new bond is filed.

Does this bond protect the dealer as well?

No. The bond protects consumers and the state, not the dealer. If a claim is paid out, the dealer must reimburse the surety company for the amount of the claim.

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