Minnesota Motor Vehicle Dealer Bond | #1 Surety Agency for MVD Bonds

Minnesota Motor Vehicle Dealer Bond

The state of Minnesota requires auto dealers to acquire a motor vehicle dealer bond to operate legally within the state.

Apply Now

Why work with Bonding Solutions? Simple! We are different!

We are a surety only agency that thrives on creating an unbeatable client experience! Our industry leading bond volume allows us to create programs that can be tailored to each individual client, getting them their bond faster at the cheapest cost! Below are a few reasons our clients love to work with us:

  • #1 Rated Bond Agency Nationwide
  • Find the Lowest Bond Costs in Minutes
  • Quickest Approvals
  • Pay Instantly Online – 100% Secure
→ Get Started!

What is a Minnesota Motor Vehicle Dealer Bond?

In the United States, it is a common regulatory practice for states to require auto dealers to secure a surety bond as part of their licensing criteria, and Minnesota is no exception to this rule. The Minnesota Motor Vehicle Dealer Bond is a crucial requirement for anyone applying for or renewing a dealer license in the state. This bond functions as a form of financial assurance and ethical commitment from the dealer to the state and its consumers. Its primary role is to protect the state and the public from any illegal or unethical practices that might be committed by auto dealers.

The bond acts as a safeguard, ensuring that dealers adhere to the laws and regulations governing vehicle sales in Minnesota. It provides a mechanism for compensation in cases where a dealer’s actions result in financial loss or other damages to consumers or the state. This could include instances of fraud, misrepresentation, or any other form of malpractice. By requiring this bond, Minnesota reinforces the integrity of its auto market, fostering a safer and more trustworthy environment for vehicle transactions.

Get started by reaching out to one of our knowledgable agents or by filling out our online application.



Bonding Solutions | Minnesota Motor Vehicle Dealer Bond
Bonding Solutions | Minnesota Motor Vehicle Dealer Bond
Bonding Solutions | Minnesota Motor Vehicle Dealer Bond

How much will my Minnesota Motor Vehicle Dealer Bond cost?

Generally, these bonds are issued at 0.5% – 1% annually. However, an underwriter will need to review your application before offering terms. Credit score and experience are both underwriting consideration when determining the cost of the bond.

Bond amounts:

Motor Vehicles (automobiles) – $50,000

Motor Vehicle Dealer Bond (boat, snowmobile, horse trailer, motorized bicycle / moped) – $5,000

Why is a Minnesota Motor Vehicle Dealer Bond required?

In Minnesota, as in many other states, the requirement for a Motor Vehicle Dealer Bond is a critical component of the regulatory framework governing the automotive industry. This bond serves as a financial guarantee and a commitment from the auto dealer to conduct their business in accordance with state laws and licensing regulations. The essence of requiring this bond is to provide assurance to the public, the state, and any other parties that might interact with the dealer, that the dealer will operate ethically and legally. It establishes a standard of accountability and integrity for dealers, ensuring they uphold the principles of fair business practices.

The Minnesota Motor Vehicle Dealer Bond is particularly important in protecting consumers and other parties from potential malpractices or unethical behavior by the dealer. For instance, if a consumer suffers due to a dealer’s fraudulent practices, misrepresentation of vehicle information, or any other form of unethical behavior, they have the right to file a claim against the dealer’s surety bond. This claim, if validated, leads to financial compensation from the bond to cover the losses or damages incurred. This mechanism not only provides a safety net for those impacted by a dealer’s misconduct but also discourages dealers from engaging in such practices, knowing that there are financial and reputational risks involved.

Furthermore, the bond requirement signifies to the public that a dealer is trustworthy and committed to adhering to the laws and regulations of the state. It elevates the credibility of the dealer in the eyes of consumers, enhancing consumer confidence in the automotive market. The bond acts as a layer of protection, fostering a more secure and ethical business environment in the Minnesota auto industry. In summary, the Minnesota Motor Vehicle Dealer Bond is a vital tool for maintaining industry standards, protecting consumer interests, and ensuring the overall health of the automotive market in the state.

How do I get an Auto Dealer Bond in Minnesota?

Getting started is easy. Begin by filling out our application. Accept quoted terms and pricing. Lastly, pay for your bond and we ship the bond the same day.

Get Started

Additional Resources

Minnesota State Dealer Statutes – 168.27 Motor Vehicle Dealers

Minnesota Licensing Website

Minnesota Bond Form

What are Surety Bonds?

Surety Bond List

Load More


Call us today to speak to a Surety Bond Specialist

(877) 841-6745