Kentucky Car Dealer Bonds

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.

Why Are Bonds Required in Kentucky?

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.

Pricing of Auto Dealer Bonds.

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
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.

Dealer License Information

All Kentucky dealer licenses must have the following:

  1. Established place of business, with an office and display lot
  2. Certificate of Insurance with garage liability coverage minimums of $250,000 per person, $500,000 per occurrence, and $250,000 for property damage. Automotive recyclers must have a commercial general liability policy in the same amounts
  3. Business name that specifies nature of business
  4. Licensed sales personnel
  5. Business sign visible from main road showing exact name with letters at least 9” in height
  6. Separation of dealership from other businesses at same location- distinct area for a display lot or customer parking

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”.

Where to Apply for a Car Dealer Bond

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.

Bond Application for Kentucky Dealers

Motor Vehicle Dealer Bond

Additional License Information

All dealers must comply with the requirements stated above but some dealers have further specifications.

How Do Dealers Apply for a Car Dealer Bond?

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.