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Increased Surety Bond Requirement for Missouri Auto Dealers

The bond surety bond requirements for Missouri auto dealers have increased

Auto dealers in Missouri purchasing vehicles that do not have a title from sellers to to-resell to consumers must post a surety bond in the new amount of $100,000, effective August 28, 2015. If the principal decides not to participate in this program and chooses to only sell titled motor vehicles, they will need to post the original bond amount of $50,000.

In addition to posting a surety bond, dealers and purchasers must complete Motor Vehicle Written Agreement to Sell Without Title form (Form 5620). There is also the option to issue a 90-day temporary permit on vehicles as long as form 5620 has been provided to the purchaser.

If the Temporary Registration Permit Application (TRPA) is unable to find evidence of the dealer’s bond, only a 30-day temporary permit can be issued. 90-day permits can only be issued if the principal (dealer) has posted a surety bond as well as completed the Motor Vehicle Written Agreement to Sell Without Title form.

In order to remain in compliance with the law, principals must abide by all provisions stated in Chapter 10 of the Missouri Dealer Operating System. All vehicles eligible for this program must be registered in the state of Missouri.

Below is a list of the types of dealers that qualify for this program:

For additional questions, please contact the Missouri Dealer Licensing Unit of the Department of Revenue. You can also visit the SuretyBonds.com Motor Vehicle Dealer Bond page.

Photo courtesy David Stanley Chevrolet of Norman (CC BY-NC-ND 2.0)