Motor vehicle dealers are required to post a Motor Vehicle Dealer Bond as part of the process to license the dealership. The amount of the bond depends on what type of vehicles are to be sold, the amount of vehicles you plan to sell, and other factors. Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
This bond guarantees the principal will abide by all Kansas state laws and regulations along with the rules outlined in the Kansas Statutes Annotated, Chapter 8, Article 24.
Since this bond is continuous, it is in full force and effect until cancelled. If the bond is cancelled, a 30 day written notice must be submitted to the Kansas Department of Revenue, Division of Vehicles, Dealer Licensing Bureau in Topeka, Kansas.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company.
The license expires on December 31st each year and must be renewed before the expiration date.
For more licensing information, visit the Kansas official page.