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Who Is Required To Purchase an Auto Dealer Bond In Kansas?
Every license classification is required to purchase an auto dealer surety bond in the amount of $5 0,000. Here are the classifications in Kansas:
- New vehicle dealer
- User vehicle dealer
- Distributor
- Wholesaler
- Factory branch
- Factory representative
- Brokers
- Lending agencies
- Vehicle recyclers
Financial Net Worth Surety Bond
If during the licensing process the director has reasonable cause to doubt your financial standing and responsibility they may require an additional bond in an amount ranging from $5,000 to $20,000.
This bond requirement is rare and you will be told if you are subject to it, along with the required bond amount.
If you need this bond, we can help you get this and your license bond.
Every Dealer License Is Independent
Every license requires its own license application process. This means each license needs it's own surety bond.
For example, if you sell new vehicles and you plan on selling used vehicles, you will have to get a used dealer license and purchase another surety bond for that license.
Get Your Bond Pricing Today
You can get instant pricing for your Kansas auto dealer bond. Click the button below. You need to know the amount of your bond.
Need Help? Call Us Today
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
Why is a Kansas Vehicle Dealer Bond Required?
The Department of Revenue sets a licensing process as a way to ensure only qualified individuals and businesses can sell vehicles in the state.
This process includes meeting requirements like:
- Having your financials inspected
- Making sure your dealership lot is set up correctly
- Paying an assortment of fees
And despite the process of getting licensed, every year there will be a few dealerships that purposefully choose to harm their customers financially to make more money.
Examples of these actions include:
- Improperly transferring a title
- Selling vehicles with no title
- Misrepresenting vehicle information like mileage, manufacture year, or condition
- Stealing customer deposits
- Failing to pay the correct sales taxes to the Department of Revenue
If a dealer commits an act like this, the customer or the state can make a claim against the dealer's surety bond for financial compensation. This amount is capped at the bond amount of $50,000.
How Much Does Kansas Auto Dealer Bond Cost?
In Kansas the dealer license surety bond is set at $50,000.
Auto dealer bonds, in general, are a credit driven bond. This means one of the factors that impact the price you pay is the credit reports of the owner and/or owners.
This also means that your price is going to be unique to your businesses.
The custom price is determined by a rate from a surety. A surety is an insurance company that underwrites auto dealer bonds. Here are the main factors a surety will evaluate when determining this rate:
- Personal credit or owner and owners
- Dealer industry and experience
- Prior bond claims if an owner has been licensed in the past
Every surety will quote a rate and these rates can vary by one, two, or more percentage points and this is how you can save hundreds of dollars when you purchase your bond.
How to Easily Save Hundreds of Dollars When Purchasing Your Bond
At Surety Bonds Direct, we are a surety agency. We work with the highest A-rated sureties that specialize in vehicle dealer bonds.
What we do is price shop for you when you request a price quote. We'll collect all the different rates from these sureties and deliver to you the lowest possible rate and price to make purchasing your surety bond easy.
Here's example pricing with typical rates ranging from really good to about average.
Pay attention to the price differences. It can be significant.
| Bond Amount | Premium Rate | Total Cost |
|---|---|---|
| $50,000 | 0.5% | $250 |
| $50,000 | 1.0% | $500 |
| $50,000 | 2% | $1,000 |
| $50,000 | 3% | $1,500 |
| $50,000 | 4% | $2,000 |
Your savings can easily be $500 or more and that is enough to pay all or close to all the application fees for your license.
However, the only way to know your pricing is to request a free quote and see how low of a price we can obtain for you..
Click here and complete our quote form. It's fast to fill out and if you prefer to speak with a person, call a bond specialist at 1-800-608-9950.
How Long Does The Kansas Auto Dealer Bond Last?
Once you're ready to buy your bond, purchasing is simply completing an online checkout form.
Your payment is one payment for the term of the bond.
In Kansas the bond term is 12 months from the effective date. The effective date is the "active" date you choose when you purchase your bond.
As your renewal date (or bond expiration date) approaches, all you have to do is pay the renewal premium for the next year.
Your bond specialist will contact you 30 to 45 days in advance with pricing ready to go so the renewal process is seamless.
Once you pay the renewal premium, you don't have to do anything else. Your bond is active and you can continue selling vehicles.
Get Your Bond Pricing Today
You can get instant pricing for your Kansas auto dealer bond. Click the button below. You need to know the amount of your bond.
Need Help? Call Us Today
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
Vehicle Dealer Bonds And Getting Your Kansas Business License/Registration
Kansas has handbooks to help new dealers get through the licensing process. Click here to view and download these forms.
Keep in mind, you will see a $30,000 bond amount. This is the old bond amount. It has since been raised to $50,000.
At a high level, the licensing steps are:
- Decide on your license classifications or classification
- Determine your ownership details and identities
- Purchase your surety bond
- Get your temporary tags
- Fulfill all of the dealership and property requirements
- Complete your application
Additional Kansas Vehicle Dealer Bond Resources & Links
KANSAS DEPARTMENT OF REVENUE HELPFUL TIPS ON OBTAINING YOUR DEALER LICENSE
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