Minnesota Auto Dealer Bonds
Certain dealers are required by Minnesota law to carry a surety bond. Bonds are put in place to reimburse customers if a dealer doesn’t follow the standards of the law.
The dealers required to have a bond are new and used car dealers, wholesalers, brokers, lessors, auction dealers, and salvage pools.
What is the Cost of a Dealer Bond?
Jet works with several top-rated insurance companies to find the lowest cost for you.
Our customers have the option to pay either an annual rate or a monthly rate. Monthly rates for a motor vehicle dealer bond start at $21 and yearly rates start as low as $250.
|Price Tier*||$50,000 Motor Vehicle
|Monthly | Annual|
|Preferred||$21 | $250|
|Standard||$44 | $525|
|Credit Repair||$93 | $1000|
*The pricing of motor vehicle bonds is based primarily on dealer’s personal credit. The chart does not show all available prices. Also, rates reflected are subject to change at any time and not a guarantee.
How to Apply for an Auto Bond.
The application process can be done in a minute. Click “Apply Now” below to start our application. By following the prompts and submitting your information, Jet will be able to provide an email quote which allows the bond to be purchased directly online.
|Minnesota Car Dealer Bond Application|
|$50,000 Dealer Bond|
What Items are Needed for a Dealer License?
In order to receive your license, you must submit the following:
1. Motor Vehicle Dealer License Application (both sides must be completed) (PS2401)
2. License fees- $150 application fee, $100 administration fee
3. Dealer Surety Bond (PS2446)
4. Commercial Location Checklist (PS2410)
5. Verification of Property Lease or evidence of building ownership (PS2407)
6. Zoning Verification (PS2421)
7. Certification of Compliance with Minnesota Worker’s Compensation Law (PS2420)
8. Demonstration/ In-Transit Plate Application (PS2405)
9. Franchise Agreement, if needed (PS2404)
When Is the Licensing Period?
The dealer licensure period starts on the month the license is issued and will be valid for 12 months. Expiration dates are spread out throughout the year to make renewals easier to manage. Renewals are available on the 15th of the month prior to expiration and must be submitted on or before the expiration date.
A late fee will be applied for renewals after the expiration date and will be accepted up to 60 days after expiring. Past 60 days, you will have to apply as a new dealer to receive a license.
When Does Your Bond Expire?
Motor vehicle bonds may match up to your licensure period, defining the term that the bond is valid for. There is also an option to make the bond continuous from a start date.
Both are acceptable, as long as a bond is in effect during your licensure period and while you are doing business.
Is Selling Motor Vehicles Allowed on Sundays?
Motor vehicle dealers are not allowed to do business on Sundays, with the exception of selling trailers made for and used for transporting watercraft, all-terrain vehicles, or snowmobiles. Sales of utility trailers are also allowed.
Any sales outside of the previously mentioned categories is strictly prohibited.