Motor vehicle dealers are required to file a $50,000 bond with the Kansas Division of Vehicles. The bond puts financial responsibility on the licensed dealer to perform according to regulations, holding them liable in cases of monetary loss incurred by the public.
Your Kansas Auto Dealer Bond is ready within minutes—get started:
Jet Surety cuts out the middleman to deliver the lowest rates and quickest service.
Rates start at $200 for 1 year, $350 for 2 years, and $20 a month. The price you qualify for is dependent on your personal credit and years of experience.
Regardless of the payment option you choose, there are benefits—the one- and two-year prices are discounted rates, while the monthly option allows you to pay as you go. You can cancel your bond at any time.
A motor vehicle dealer is any person who purchases a vehicle with the intent to sell it for a profit. Anyone that sells at least five vehicles in a year must be licensed and hold a bond.
Although it’s called a Vehicle Dealer Bond, there are several license classifications that must be bonded. Here is a list of those required to file a bond with the Kansas Department of Revenue, Division of Vehicles:
Exceptions to the bonding requirement are factory branches, manufacturers, lending agencies, and manufactured home dealers.
The Kansas Division of Vehicles, Dealer Licensing Bureau (the obligee) is tasked with overseeing licensing of dealers to ensure compliance with laws, rules, and regulations. The surety bond is just one tool used by the obligee, which guarantees restitution should the obligee or member of the public be financially harmed.
Jet, as the surety company, has the role of guarantor. This means we provide compensation in cases of valid bond claims. Just so you know, claims can be avoided by complying with the laws and, should anything happen, addressing issues promptly. Claims are often the last resort when the dealer has failed to make things right. Other disciplinary actions include license suspension or revocation and fines.
Should a claim be paid out, the dealer is responsible to pay Jet back. This is because surety bonds are unlike insurance and only cover instances of dealer fraud or negligence.
Kansas isn’t alone in its license bond requirement—all 50 states require motor vehicle dealers to hold a surety bond in some capacity.
Review Kansas Statutes, Chapter 8, Article 24 for additional details on dealer licensing requirements.
Our bond process can be completed in under 5 minutes. Fill out the necessary information, select your preferred payment option, enter your card information, and be on your way.
After successful payment, you can download your bond form and receipt for your records. Jet will send you the original bond for you to sign. It’s then your responsibility to get it to the Dealer Licensing Bureau at the below address, alongside your application:
Kansas Department of Revenue
Division of Vehicles, Dealer Licensing Bureau
PO Box 2369
Topeka, KS 66601
Jet will fill out the bond form for you based on the information put into the application. Make sure to select. There are a few different ways to structure your business: (1) corporation, (2) partnership, and (3) sole proprietorship/individual.