Mississippi Motor Vehicle Dealer (Designated Agent) Bonds

Purchase Your Mississippi Motor Vehicle Dealer Bond Today

Mississippi licenses 8 dealer classifications. These are:

• New (franchise) vehicle dealer
• User vehicle dealer
• Motorcycle dealer
• Trailer only dealer
• Wholesale only dealer
• Dismantler*
• Manufacturer
• Heavy truck dealer

The Department of Revenue requires all license classifications to purchase a surety bond as a license requirement.

They make it easy on you because it's a $15,000 bond for every classification.

* Dismantler Special Note

If you're a dismantler and you sign an affidavit guaranteeing that you will not sell any motor vehicles and/or manufactured home, the $15,000 bond requirement is waived and no dealer tags will be issued.

Why is a Mississippi Motor Vehicle Dealer Bond Required?

As we've mentioned, the Department of Revenue sets the licensing requirements for all new dealers and license renewal.

This licensing process includes:

• Purchasing a surety bond as described above
• Securing the minimum levels of liability insurance
• Obtaining sales tax number
• Establishing your physical dealership location

These requirements are set to ensure only individuals and businesses who can meet a minimum requirements can quality to get licensed.

Even with these requirements in place, every year there will be a small number of licensed vehicle dealers who financially harm their customers on purpose to make more money.

Examples of these fraudulent 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 customer is harmed by a dealer, they can make a claim against the surety bond for adequate financial compensation. If the claim is deemed valid, the surety will pay the customer.

Any single claim and/or the aggregate of all claims cannot be more than the bond amount of $15,000.

How Much Does Mississippi Auto Dealer Designated Agent Bond Cost?

The primary factor that will impact the price of your auto dealer bond is a rate quoted from a surety.

A surety is an insurance company that underwrites auto dealer bonds. And typically they will consider these three factors when quoting a rate:

• Personal credit or owner and owners
• Dealer industry and experience
• Prior bond claims if an owner has been licensed in the past

We are Surety Bonds Direct and we work with the highest A rated sureties to find our customers in Mississippi the lowest price to purchase the $15,000 bond.

The great news is because of the low level of dealer fraud in the same along with the lower bond amount, we've secured low fixed prices with:

• No credit check required
• No background check

So you can purchase your bond today and immediately download your bond once your payment is processed.

Here are the prices and bond terms you can choose from:

This is one payment for the term of your bond which in Mississippi is 12 months.

If you have any specific questions or need help completing your purchase call a bond specialist at 1-800-608-9950.

How Long Does The Mississippi Auto Dealer Dealer Designated Bond Last?

As we've mentioned the bond term is 12 months from the activation date.

As you complete the checkout process, you'll choose this activation date to meet your licensing schedule. This is also called the effective date.

Your bond will have to be renewed 12 months from this date.

The good news is we will remind you 30 to 40 days in advance of your renewal date so you can pay the renewal premium and keep your bond active.

Renewing Your Mississippi Dealer Dealer Designated Bond

The Mississippi dealer designated agent bond is a continuous bond.

Once you purchase your bond, you'll immediately print the bond and submit it with your application packet.

When you pay the renewal premium during renewal, the same bond will rename active. This means you won't have to print a new bond and submit it.

Motor Vehicle Dealer Bonds And Getting Your Mississippi Business License/Registration

Mississippi Department of Revenue has handbooks and instructions to make the licensing process easy to follow.

At a high level, the licensing steps are:

• Decide on your license classifications or classification
• Purchase your liability insurance
• Purchase your surety bond
• Complete the 8 hour educational seminar conducted by the Mississippi Independent Auto Dealers Association
• Register and get assigned your tax number
• Ensure your physical location and office meet the rules
• Complete your application and pay all required fees

If you prefer to speak with a person, call a bond specialist at 1-800-608-9950.

Additional Mississippi Motor Vehicle Dealer Bond Resources & Links

Mississippi Motor Vehicle Dealer Licensing