Auto dealer bond cost
The Kentucky Motor Vehicle Commission requires motor vehicle dealers to post a surety bond. The required bond amount is usually determined by the annual volume of vehicles sold, but cannot be in an amount less than $15,000. Applicants should verify their required bond amount with the state prior to bonding.The price you’ll pay for your bond depends on your required bond amount and a review of your personal credit report.
Why this bond
Kentucky dealer bonds are put in place to ensure that principals (auto dealers) comply with all ordinances, rules and regulations of the state and industry. Because these bonds are written on Kentucky’s generic surety bond form, the specific terms of the bond aren’t listed. Instead, applicants should turn to the Kentucky Motor Vehicle Commission for more information.Specifically, this bond protects the state and individual parties who suffer financial losses as a result of a dealer’s unethical or unlawful actions while on the job.
Auto dealer bond details
Kentucky motor vehicle dealer bonds remain in full force and effect unless violated by the principal or canceled by the surety. Bonds can be issued for a definite term or an indefinite term, which will be indicated on the bond form.
Auto dealer bonds in Kentucky can be continued with a continuation certificate signed by the surety. The surety can cancel the bond at any time by giving written notice of cancellation to the obligee 30 days prior to the effective termination date.All bonds in Kentucky are subject to a state surcharge of 1.8%.
Become a motor vehicle dealer
To become a licensed motor vehicle dealer in Kentucky, applicants must have the following:
- an established place of business (display lot/customer parking area, office)
- a business name
- licensed sales personnel
- business signs
- separation of facilities
- a completed application and appropriate fees
All applications must be sent to the Motor Vehicle Commission 10 days prior to the next scheduled commission meeting. The commission might require additional information to accompany the application depending on the type of dealer license being applied for.We can get you a free quote on a Kentucky auto dealer bond within 1 business day of receiving your application. Apply for a free bond quote today!
Apply for your surety bond
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