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.
Dealers of boats, small horse trailers, mopeds, snow-mobile dealers, or any trailer carrying less than 15,000 pounds must file a $5,000 bond. All other vehicle dealers must file a $50,000 bond.
This bond guarantees the principal will abide by all Minnesota state laws and regulations.
Since this bond is continuous, it remains full force and effect until it is cancelled. If it is cancelled, the obligee must be notified of the cancellation within 30 days of the cancellation date.
The bond amount is determined on the specific type of vehicle that is sold.
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.
For more license information, visit Minnesota’s official page.