Mississippi Car Dealer Bonds

Each state has a different requirement for motor vehicle dealer bonds. In Mississippi, a NEW motor vehicle dealer must have a $25,000 to meet licensing requirements. This includes dealers who sell new motorcycles/scooters, buses, specialty vehicles, and RVs. Although separate locations require their own bond, a new dealer may choose to have a $100,000 bond to cover all their business locations. A USED motor vehicle dealer must have a Bond of Designated Agent in the amount of $15,000.

The two bonds previously mentioned are enforced by different obligees. New dealers are required to be bonded through the State of Mississippi Motor Vehicle Commission, and used dealers must be bonded through the State of Mississippi Department of Revenue.

Pricing of Mississippi Dealer Bonds

When purchasing a bond, you only have to pay a small portion of the required bond amount. As long as you follow state regulations while conducting business, you will not have to pay anything past the rate to receive your bond.

Choosing Jet is a great way to keep that initial rate low. We offer a monthly payment option, keeping payments as low as possible. We also offer a yearly rate that is competitive.

The true cost for your bond will depend on a few factors, like the type of license you are applying for or personal credit, among other things.

Price Tier* Used Car Dealers New Car Dealers New Car Dealers – Multiple Locations
Monthly | Annual Monthly | Annual Monthly | Annual
Preferred $10 | $100 $12 | $125 $42 | $500
Standard $19 | $225 $32 | $375 $83 | $1000
Credit Repair $42 | $450 $70 | $750 $177 | $2000
Used Car Dealers
Price Tier
Monthly | Annual
Preferred
$10 | $100
Standard
$19 | $225
Credit Repair
$42 | $450
New Car Dealers
Price Tier
Monthly | Annual
Preferred
$12 | $125
Standard
$32 | $375
Credit Repair
$70 | $750
New Car Dealers – Multiple Locations
Price Tier
Monthly | Annual
Preferred
$42 | $500
Standard
$83 | $1000
Credit Repair
$177 | $2000
*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.

What is the Bond Requirement?

Mississippi motor vehicle dealers must have a bond to be licensed and run their business. The bond is used to cover any financial loss caused to the public by a dealer acting illegally. Instances of fraud and willful misrepresentation of the vehicle’s information are some specific examples of what the bond will cover.

Bonds act in a way similar to insurance; you pay a small premium to receive a large amount of coverage, and in the right circumstances, the bond pays a customer that was harmed by your actions.

The crucial difference is that once the customer receives payment, your bond needs to be paid back up to the full limit. You are responsible for repaying the surety for the amount that was paid out from the bond.

Click Apply Now below to get started with application for the bond requirement.

Bond Applications for Mississippi

$15,000 Used Motor Vehicle Dealer Bond

$25,000 New Motor Vehicle Dealer Bond

$100,000 New Motor Vehicle Dealer Bond – Multiple Locations

Dealer License Periods and Bond Length?

Since new and used dealers have different licensing authorities, their license periods are not the same. A used dealer’s license is valid from November 1st (or issuance of license) to October 31st. New dealer licenses follow the calendar year, ending on December 31st following issuance.

However, both bonds run the same amount of time. Once in effect, they will run continuously unless cancelled.

Application Information for NEW Vehicle Dealers

New dealers must apply for licensing with the MMVC. Along with filling out the application, several documents should be attached:

USED Vehicle Dealer Application Procedures

Used dealers have certain steps required of them prior to submitting their applications.

  1. Study the Motor Vehicle Dealer Tag Permit Law Book and attach a complete Dealer Tag Permit Application.
  2. Have a Bond of Designated Agent in the amount of $15,000.
  3. Complete an 8-hour educational seminar. Information can be found on Mississippi Independent Auto Dealer Association (MIADA) website.
  4. Provide liability insurance.
  5. Receive a sales tax number and attach form. If planning to rent vehicles, a separate tax number is needed.
  6. Wholesalers can only sell to dealers but are held to the above requirements to receive their license.
  7. For dismantlers only- a signed affidavit stating that you will not sell motor vehicles and/or manufactured homes will dismiss you from the bond requirement
  8. Once all these steps are completed, the application is ready to be sent to the Mississippi Department of Revenue.