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License Bond

Motor Vehicle Dealer License Surety Bond

Any person engaged in the business of leasing, selling, or arranging the sale of motor vehicles (new or used) who sells or leases more than five vehicles in a 12-month period, including brokers, wholesalers, auctioneers, and lessors. Required when: Application for or maintenance of a motor vehicle dealer license. Exem…

Overview

What it is.

Any person engaged in the business of leasing, selling, or arranging the sale of motor vehicles (new or used) who sells or leases more than five vehicles in a 12-month period, including brokers, wholesalers, auctioneers, and lessors. Required when: Application for or maintenance of a motor vehicle dealer license. Exem…

Who usually needs it

Any person engaged in the business of leasing, selling, or arranging the sale of motor vehicles (new or used) who sells or leases more than five vehicles in a 12-month period, including brokers, wholesalers, auctioneers, and lessors.

Pricing & timing

What to expect.

Generic pricing

License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…

Typical timeframe

Issuance timeframe varies by bond type and underwriting

Application

What to do next.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. Keep your effective date and renewal date on file with us.
Start the application.

You are on the exact bond page. The next step is to start the quick application.

Details

Bond details.

StateMN
Bond amount$50,000
Term lengthContinuous
ObligeeMinnesota Department of Public Safety, Driver and Vehicle Services
RenewalThe bond must be kept in full force and effect. Renewal is typically handled via an annual premium payment to the surety company; a continuation certificate may be required by the DVS to prove the bond remains active.
Bond classLicense Bond
CategoryOther
BondMotor Vehicle Dealer License Surety Bond
Statutory referenceMinnesota Statutes Section 168.27, Subdivision 24
JurisdictionState
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Next step

Ready to move forward?

Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.