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How much does an auto dealer surety bond cost in Minnesota?
The required amount of Minnesota motor vehicle surety bonds varies depending on the type of vehicles being sold. Boat, snowmobile, small horse trailer, motorized bicycle, and moped dealers — as well as dealers of trailers with a manufacturer’s rated carrying capacity of less than 15,000 pounds — must post a $5,000 surety bond. All other auto dealer bonds must be in the amount of $50,000.
The amount you’ll pay for your Minnesota auto dealer surety bond depends directly on your application and financial credentials.
If you’re ready to get bonded, fill out our online bond request form. We’ll get you the bond you need quickly, easily, and accurately.
Why do I need this bond?
Motor vehicle dealer surety bonds are required by the state of Minnesota to ensure that the principal (vehicle dealer) operates within the confines of the law and pays all taxes, licensing fees and penalties that may be required. By posting this bond, the vehicle dealer also promises not to mislead or deceive customers through false advertising or any other deceptive statements regarding the sale or financing of a vehicle. Failure to maintain this bond could result in the revocation of a dealer’s license.
In Minnesota, vehicle dealers must post surety bonds in order to be licensed, and our specialists here at SuretyBonds.com are dedicated to helping you secure the right bond for your business. Our experts and clear-cut bonding process make getting bonded quick and easy! Fill out a bond request form to get started.
Please note this page is for vehicle dealer licensing. If you have lost or need to obtain a vehicle title, a Minnesota certificate of title bond is required.
What’s the fine print?
Minnesota vehicle surety bonds are continuous in nature. The surety company must provide the obligee with 30 days’ notice before canceling.
The principal’s signature on the bond form must be witnessed by a licensed notary.
Any dealer who sells trailers designed to transport small construction or farm equipment in any year following a year in which the dealer had less than $500,000 in gross receipts from the sale of such trailers does not need this surety bond. Any dealer who the Minnesota Department of Public Safety determines will have gross receipts of less than $500,000 in the first year of business is also exempt from this bonding requirement.
How to become a motor vehicle dealer in Minnesota
In addition to posting and maintaining a surety bond, motor vehicle dealers in Minnesota must have the following in order to be licensed:
- Completed motor vehicle dealer license application
- Photocopy of driver’s license
- Photocopy of check or money order payable to Driver and Vehicle Services for license fees
- Commercial location checklist
- Zoning verification
- Certification of compliance with MN worker’s compensation law
- Demonstration/in-transit plate application
- Franchise agreement (if applicable)
- Verification of property lease or proof of building ownership
The state’s full licensing requirements can be found here.