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Mississippi Auto Dealer Bond

Get Your Mississippi Motor Vehicle Dealer Bond Through Viking Bond Service

Even though Mississippi accounts for just 0.7% of all vehicle registrations nationwide, the National Automobile Dealership Association reports there are more than 175 new vehicle dealerships in the state and many more used dealerships. Auto sales is a competitive but lucrative industry to be in, and Viking Bond Service can help. We can assist both clients with good credit, and clients with bad credit. Typically, the worse the credit, the higher the surety bond premium will be. In either case, we always work to get the best quote for you. Viking Bond Service has partnered with markets that welcome Mississippi Motor Vehicle Dealer bond applications and provide competitive quotes for them.

Mississippi Auto Dealer Bond Explained

The Mississippi Motor Vehicle Dealer bond is a License Surety Bond that serves to protect Mississippi's citizens by providing a path for recourse in situations where an Auto Dealer does not adhere to the laws, rules and regulations as set in Mississippi state legal statutes. A Mississippi Motor Vehicle Dealer bond may be required as part of the Motor Vehicle Dealer licensing and/or vehicle registration process.

In Mississippi, the required Motor Vehicle Dealer bond amount is as follows:

• Mississippi Motor Vehicle Dealer bond requirement – $25,000 Surety Bond per location or $100,000 Surety Bond for multiple locations of the same capacity in lieu of separate bonds for each location.

You should always check with the Mississippi Motor Vehicle Commission, or requesting agency, for the most current required Mississippi Motor Vehicle Dealer bond amount as well as the required bond forms.

What Parties are Involved in an Auto Dealer Bond Mississippi?

Unlike insurance agreements that involved two parties, there are three parties involved in a Mississippi auto dealer surety bond agreement:

• Principal - The auto dealer responsible for obtaining the bond and settling any claims filed against it.
• Obligee - The agency that requires the bond and benefits from any settled claims. In this case, the obligee is the Mississippi Motor Vehicle Commission.
• Surety - The company that issues the Mississippi motor vehicle bond. The surety agrees to pay any claims the principal does not pay. However, after paying, the surety does whatever possible to collect from the principal — the party that has the final financial responsibility for the bond.

Who Needs an Auto Dealer Bond Mississippi?

If you plan to sell fewer than four vehicles per year, you do not need either a license or a bond. If you plan to sell above that figure, however, you must have a state motor vehicle dealer license. Obtaining a Mississippi auto dealer bond is a requirement for earning a license, so basically anyone that plans to sell vehicles commercially should plan on getting a bond first.

How Are Auto Dealer Bond in Mississippi Obtained?

The first step is to connect with a quality surety company like Viking Bond Service that is authorized to issue Mississippi motor vehicle dealer bonds. The next step is to submit a simple application form with details about your personal and professional finances. Underwriters will use the application to determine your credit risk and then quote you a premium price based on that risk. Once you pay the premium, your bond is active. Finally, you will need to submit a form (provided by the surety) to the state of Mississippi proving that you have an active bond.

The Cost to Obtain an Auto Dealer Bond in Mississippi

The bond total isn't the same as the bond cost. The cost is typically a small percentage of the total, around 1-5%. The exact figure is based on your credit worthiness, but applicants with bad credit are unlikely to be denied, and their premiums won't be exorbitantly higher. For most Mississippi auto dealers, bonds cost less than $1,000 on an annual basis. As long as those dealers follow the state rules and don't have to pay any claims, the annual cost won't exceed the premium price.

How to Renew a Mississippi Auto Dealer Bond

Mississippi auto dealer surety bonds are active for 12 months. Once they expire, your motor vehicle dealer license becomes invalid. Avoiding this disruption is as easy as renewing your bond annually. You will need to resubmit your bond application, which underwriters will use to re-evaluate your credit risk. If it has gone up or down in the previous year, your premium could go up or down accordingly. At Viking Bond Service, the renewal process is handled for you. If anything additional is required when renewing we will let you know well before the expiration of your bond.

How Viking Bond Service Can Help You Get a Mississippi Auto Dealer Bond

Every motor vehicle dealer in Mississippi needs a motor vehicle dealer bond, and many choose to rely on Viking Bond Service. Why? Because we make obtaining and renewing a bond as easy and affordable as possible. Our team of bond experts can walk you through the process, answering all your questions along the way. Then, you need just a few minutes to complete our online bond application. You will likely receive a quote in just 24 hours, meaning in only a day or two you could have the bond you need to get your business up and running.

Request a Mississippi Motor Vehicle Surety Bond Quote

Viking Bond Service is happy to prepare you a no-obligation quote. If you would like to speak to someone directly first, please call us at 1-888-278-8389. You can also send us your questions in writing by filling out the contact form on this page. To get your quote sooner rather than later, access our online application anytime.