Kentucky motor vehicle dealers, new recreational vehicle dealers, motor vehicle auction dealers, and wholesalers may be required to carry a bond. The amount of the bond will be no less than $15,000 and no greater than $100,000.
The Motor Vehicle Commission (MVC) will determine whether you need a bond and in what amount when checking your financial statement during the application process. Auction dealers may have a bond limit higher than $100,000 based on the decision of the MVC.
One of the requirements of receiving a motor vehicle dealer license is providing coverage for your actions, either in a bond or insurance policy. A bond will protect customers from unlawful practices that result in monetary loss. Practices such as not delivering a title or purposefully withholding information about an issue on a vehicle are some of the acts that are protected by the bond. However, any pay outs made by the bond must be reimbursed by the dealer.
With a bond, you are able to pay a small amount of your bond requirement and still be fully covered. If you follow the law, you will not have to pay anything past what you pay up front to receive your bond.
One of the biggest factors of the bond rate is the bond requirement, which is dependent on what the MVC assigns to you. If you are required to have the minimum $15,000 bond, your rate could be as low as a monthly cost of $9. For the same amount, you can choose a yearly cost of $90.
|Bond Limit||Bond Cost*|
|Monthly | Annual|
|$15,000||$9 | $90|
|$30,000||$18 | $180|
|$50,000||$30 | $300|
All Kentucky dealer licenses must have the following:
The application must be filled out and submitted to the MVC 10 working days BEFORE the monthly Commission meeting, held on the 2nd Friday of each month. Any fees should be included with application, such as $40 for application and $20 for each owner. Checks payable to “Kentucky State Treasurer”.
Bonds can be applied for through our quick online application. Clicking Apply Now below will get you right into the application. Once the information is submitted, Jet works to deliver a competitive price within 24 hours of receival.
Motor Vehicle Dealer Bond
All dealers must comply with the requirements stated above but some dealers have further specifications.
If a bond is required, it must be in effect during the entire licensure period. The bond will remain in effect until it is cancelled, such as from lack of payment.
Dealer licenses expire December 31st each year. Renewals must be done online through the MVC website and can be started as early as October 1st.