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.
Wholesale and used motor vehicle dealers must file a $25,000 bond. If the dealer conducts business at more than one location throughout Mississippi, then a ‘blanket’ bond of $100,000 must be filed. The blanket bond covers multiple business locations instead of having to bond each location individually.
This bond guarantees the principal will abide by all Mississippi state laws and regulations along with the laws outlined in Section 62-21-13 of the Mississippi Code of 1972. All laws in the Mississippi Motor Vehicle Commission Law must also be followed.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
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 licensing information, visit Mississippi’s official site.