Motor Vehicle Dealer Surety Bond
The Missouri Motor Vehicle Commission has required the obtainment of the Motor Vehicle Dealer Surety Bond. The required bond amount is $25,000.The bond is required in order to obtain an active license and conduct business in the state of Missouri.
The bond helps ensure that the dealer will comply with the conditions of any written contract or written warranty by such dealer or his agent, made in connection with the sale or exchange of any motor vehicle and will pay all loss, damages, and expenses that may be sustained by any purchasers of any used motor vehicle and their vendees or successors in title by reason of any fraudulent misrepresentation as to liens against or titles to any used motor vehicle. The bond will help ensure that the dealer not act in a fraudulent manner.
The conditions of the bond are that the dealer will not practice any fraud or make any fraudulent representation which will cause monetary loss to a purchaser, seller, financing agency, or governmental agency. When a dealer obtains a surety bond, they are providing protection for any malpractice or detriment done by the company/dealer. These wrongdoings can be any person damaged by any misrepresentation or fraud of your services. The bond provides surety in regaining losses in fees, fines, and expenses imposed by state regulators. Buyers will also find confidence and peace of mind having a dealer backed by third party bonding company. Missouri also requires that the dealers act in a trustworthy manner. When asked, the law requires that the dealer disclose that the odometer is accurate, the accident history of the vehicle, and if the vehicle was a prior rental vehicle.
The surety company will payout if you are found at fault for a claim on your bond. Qualification for this bond will require a credit check. The rate will depend on the credit worthiness of the applicant and will carry a rate from 1% to 15%. A quote can be obtained by completing the online application.
Link to Missouri Department of Revenue