The Missouri Department of Revenue, Motor Vehicle Bureau requires motor vehicle dealers to hold a surety bond to be licensed. This includes trailer dealers, powersports vehicle dealers, and boat dealers.
Fleet companies and special event motor vehicle auctions also need a bond. Save with Jet today—your bond is ready for filing in minutes.
For Missouri car dealers, the lowest rate for the $50,000 bond is $28 monthly or $282 for one year.
The primary factor in the cost of any bond is the bond limit as seen with the increased prices for trailer, boat, powersport, lease/rental, and special event auction operations. The higher the bond limit, the more coverage is provided and thus the higher the price. In addition, the personal credit score of each applicant is evaluated, which is standard in the surety industry. Shown below are the rates for applicants with preferred credit
Bond Limit | Monthly | 1 Year | 2 Year |
---|---|---|---|
$50,000 | $28 | $282 | $494 |
$100,000 | $56 | $564 | $987 |
Jet’s monthly option is convenient for those wishing to pay for the bond at a low monthly cost vs. fronting a lump sum. As long as Jet receives your automatic monthly payment, the bond stays on file until cancellation is sought.
License Type | Limit | Description |
---|---|---|
Motor Vehicle Dealer | $50,000 | Those selling 8+ vehicles in a year |
Trailer/Boat/Powersports | $100,000 | Those selling 6+ trailers, boats, or powersports vehicles (ATVs, motorcycles, etc.) in a year |
Delayed Delivery of Title | $100,000 | Those selling vehicles without a title (in lieu of $50,000 Auto Dealer Bond) |
Lease/Rental Company | $100,000 | Bond required for fleet licenses only |
Special Event Auctions | $100,000 | When 90% of the vehicles are at least 10 years old and no more than 3% of the vehicles are owned/titled in the auctions or owners name. The auction should be three days or less and held no more than three times a year. |
In short, Auto Dealer Bonds financially protect the public and obligee from dealer misconduct.
The state of Missouri protects its citizens from fraudulent and negligent vehicle dealer behavior by putting certain laws into place (Revisor of Missouri, Chapter 301). The Missouri Department of Revenue, Motor Vehicle Bureau, Dealer Licensing is responsible for enforcing these laws, which is done through the license and surety bond requirement.
The surety bond is provided by a third party (Jet Insurance Company) which guarantees recompense to the financially harmed person or entity should the dealer fail to comply with obligations. A claim payout on the bond is typically the last resort—dealers have a chance to rectify the situation before any further disciplinary action is taken.
Tampering with odometer readings, failing to pay taxes, and failing to report vehicle sales are just a few examples of dealer fraud that could lead to a bond claim.
At Jet, the bond process is simple:
If you need to send things in via standard mail, do so to the following address:
Motor Vehicle Bureau, Dealer Licensing Section
PO Box 43
301 West High Street, Room 370
Jefferson City, MO 65105