Minnesota Motor Vehicle Dealer Bonds (Car, Boat, Snowmobile, Horse Trailer or Moped Dealers)
What is a Minnesota Motor Vehicle Dealer Bond?
A Motor Vehicle Dealer License Surety Bond is required to legally operate as a vehicle dealer in Minnesota. This includes businesses that buy, sell, lease, broker, or auction new or used vehicles, as a retailer or wholesaler. The surety bond amounts required are as follows:
- $50,000 for all auto dealers not defined below
- $5,000 for boat, snowmobile, small horse trailers and motorized bicycle dealers
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Why is a Minnesota Motor Vehicle Dealer Bond Required?
The surety bond indemnifies the State of Minnesota and any transferor, or seller, or purchaser of a motor vehicle for any monetary loss caused by failure of the bonded principal to comply with state laws, including conduct as a licensee defined by Minnesota Statutes, section 168.27, and the payment of all taxes, license fees, and penalties.
The aggregate liability under this surety bond shall not exceed the bond amount during the term for which it is issued. The bond may be canceled by the surety company at any time by providing 30 days advance written notice to the Registrar of Motor Vehicles of the State of Minnesota.
Motor Vehicle Dealer Bonds And Getting Your Minnesota Business License/Registration
The following is an overview of the general motor vehicle dealer licensing requirements in Minnesota.
- Completed application
- Commercial building
- Display area for a minimum of 5 Vehicles.
- Zoning approval
- Surety bond
- Liability insurance
- Signage
- Posted hours of operation
- License fees
- A separate license is required for any location in a county other than the one listed on initial application for license
- Additional items may be needed and exact requirements may vary based on applicant, license type or obligee discretion. Please see obligee and state links in the Other Helpful Information and Links section below or contact the obligee directly for more information.
Who must have a Dealers License in Minnesota?
- Those in the business of leasing, selling or arranging the sale of new or used motor vehicles
- Those who lease or sell more than five vehicles, wholesale or retail, in a twelve month period
- Those who sell used vehicle parts, or process and sell scrap metals acquired from vehicles
- Those in the business of consignment sales or arranging vehicle sales or leases
Additional Minnesota Motor Vehicle Dealer Bond Resources & Links
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