Becoming a Missouri auto dealer involves getting licensed and bonded, like it does in many states. Learn more about the process, and apply online for the bond you need today.
Essential Steps for Getting Licensed as an Auto Dealer in Missouri
If you want to be a Missouri auto dealer, you’ll submit an application to the Motor Vehicle Bureau, a division of the Department of Revenue. If you sell six or more new or used vehicles in a year, you need to get this license. Here’s some of the other information the Bureau will need:
- Business name, DBA, and address
- Type of business (LLC, corporation, etc.)
- Contact person
- Requested dealer plate quantity
- Franchise agreements (if applicable)
- Owner information
- $25,000 surety bond
- Garage liability policy (if applicable)
- Photos of building, lot, and sign
If you will be a used car dealer, you will also need a Certificate of Completion of the Dealer Educational Seminar. You’ll also need to pay licensing fees, which are prorated depending on when you apply, since Missouri auto dealer licenses expire annually on December 31. The fee starts at $150 for January applicants, decreasing monthly to $12.50 for December applicants. You’ll also need to pay $50 for your first dealer license plate, plus $10.50 for each additional plate. Those fees are also prorated if you are applying later than January.
Missouri Dealer Bond Requirements
The surety bond form Missouri auto dealer applicants need to use is available on page 54 of the Dealer Operating Manual. Auto dealers have a responsibility to customers and the state to conduct business fairly, in accordance with the law. That’s where the $25,000 surety bond comes in: when you sign the bond, it’s your promise that you will follow state and federal laws and abide by the terms of your license. If you don’t, and cause financial damage to a consumer, they can file a claim against your surety bond. If the claim is proven, the surety will pay the claim—but you’ll have to reimburse the surety for that claim amount. That means if a $10,000 claim is paid, you owe that amount to the surety company.
How Much Does The Bond Cost?
The bond amount required is $25,000, and it’s subject to underwriting. That means your premium depends on a review of your credit history by the underwriter. Applicants typically pay 1-5% of the bond’s total amount, which means you might pay $250-$1,250�or more, or less. The only way to know is to get a free quote from Single Source Insurance�get in touch today!