Kansas Car Dealer Bonds

The Kansas Department of Revenue, Division of Vehicles Dealer Licensing Bureau, requires that any person selling more than five vehicles in a calendar year or purchasing a vehicle with the intention of reselling it for a higher price is required to become licensed as a dealer. One of the main requirements to becoming a licensed dealer is getting a motor vehicle dealer bond.

What are Rates Like for a Kansas Vehicle Dealer Bond?

Bonding allows you to pay a small percentage and still cover the full amount required by law.

When choosing Jet, we search many insurance companies to get the lowest rate for you. For a vehicle dealer bond, rates start at $11 each month or a flat rate of $120 per year.

Price Tier* Motor Vehicle Dealer Bond
Monthly | Annual
Preferred $12 | $125
Standard $21 | $250
Credit Repair $47 | $599
Motor Vehicle Dealer Bond
Price Tier
Monthly | Annual
$12 | $125
$21 | $250
Credit Repair
$47 | $599
*The cost of the surety bond is based on many factors such as personal credit of the dealer, type of dealership, etc. Not all available price tiers are reflected in the above chart, and prices are not a guarantee as underwriting approval is required.

Why Is a Bond Required?

Bonds are a form of protection for customers. If a dealer acts unethically, the customer can file a claim with the Director of Vehicles office and be reimbursed up to the full amount of the bond. The bond will cover the claim but the dealer will have to pay the surety company the amount that was paid out.

Claims may be filed against a dealer for many reasons, but a few examples would be: selling a vehicle without a title, odometer tampering, and failure to report a vehicle sale. Claims can be easily avoided if the dealer acts in an ethical way at all times while conducting business.

Auto-Related Bonds in Kansas

There are two types of bonds available in the state of Kansas. A vehicle title service agent bond is in the amount of $25,000 and is used by an agent who is paid to assist with the titling, registration for a vehicle or dealer, or sales tax receipt books.

A vehicle dealer bond must have a limit of $30,000 and applies to many types of dealers. New and used vehicle and salvage dealers must carry this bond as well as converters, rebuilders, RV brokers, salvage pools, scrap metal recyclers, trailer brokers, vehicle recyclers, and wholesalers.

How Do Dealers Apply for a Car Dealer Bond?

Certain information must be provided before a quote can be given to the dealer. By clicking the Apply Now button below and submitting the application, Jet can pull together a quote rather quickly. Once the quote is ready it will be sent to the email provided with a link to purchase the bond directly.

Bond Applications for Alabama

$25,000 Motor Vehicle Dealer Bond

Kansas Dealer Licensing

To receive a license, you must apply to the Kansas Department of Revenue, Dealer Licensing. All Kansas licenses expire on December 31st every year, with renewal emails sent out in early November. License renewals are due before expiration on December 31st. Any license not renewed in time must be submitted as a new, original license application.

Making Changes to Your Business

If you undergo a name or address change but are still listed as the same entity, a bond rider is sufficient. Bond riders are a way to make legal changes to a bond that is currently in place without purchasing a whole new surety bond.

If considerable changes to your business happen, a new bond must be issued. Changing the entity of the dealership will require an entirely new bond. A new owner must file a new surety bond in their own name. Multiple changes made at once may also require a new bond, such as adding owners and changing name and address.

Any changes made to your business should be reported to your bond company to have accurate and lawful bonding at all times.