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.
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.
|New Car Dealers –
|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|
*Bond prices for Mississippi are dependent on multiple factors, as stated above, so the prices shown in the chart are not guaranteed. These rates are subject to change at any time, and not all available rates are shown.
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.
|Applications for MS Dealers|
|$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:
- $25,000 bond accurately filled out
- Name of bank affiliate
- Name and contact number of bank officer
- $100 license fee for each manufactured line available
- Salesperson applications with a $10 fee per salesperson
- Biography of each principal
- Copy of most current Financial Statement, certified by a CPA
- Photos or sketch of dealership (labeled)
- Manufacturer’s area Marketing Analysis
USED Vehicle Dealer Application Procedures.
Used dealers have certain steps required of them prior to submitting their applications.
- Study the Motor Vehicle Dealer Tag Permit Law Book and attach a complete Dealer Tag Permit Application.
- Have a Bond of Designated Agent in the amount of $15,000.
- Complete an 8-hour educational seminar. Information can be found on Mississippi Independent Auto Dealer Association (MIADA) website.
- Provide liability insurance.
- Receive a sales tax number and attach form. If planning to rent vehicles, a separate tax number is needed.
- Wholesalers can only sell to dealers but are held to the above requirements to receive their license.
- 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
Once all these steps are completed, the application is ready to be sent to the Mississippi Department of Revenue.