The Missouri Department of Revenue is very thorough in outlining the process of meeting each requirement for having your vehicle dealer license issued.
In this short post, we'll outline the steps to get your license and explain some of the steps that get the most questions.
The 6 Steps to Get Your Missouri Vehicle Dealer License
Step 1 - Complete The Application
A separate license and application process is required for the following classifications:
- New or used motor vehicle dealer
- Boat dealer
- Powersports dealer
- Wholesale vehicle dealer
- Trailer dealer
- Recreational dealer
- Manufacturer
- Wholesale auction dealer
- Public auction dealer
- Leaser dealer
- Salvage or dismantler dealer
- Body shop
- Scrap processor
- Used parts dealer
If you're selling more than 8 vehicles (6 for trailer, powersport and boats) you're required to get licensed.
And all licenses expire and must be renewed prior to December 31st of each year unless you've been in business for three years at which time you'll move to a 2 year license period.
At a high level, here are the main requirements you must meet:
- Have photographs of your dealership location
- Pass the inspection of your location
- Used vehicle dealers only must pass a Certificate of Dealer Educational Seminar
- Purchase your surety bond if your license requires it
- Secure the required minimum garage liability insurance
- Pay off the application fees
- Complete the necessary criminal background check
Step 2 - Dealership Business And Location Requirements
You must be open to the public at least 20 hours (6am through 10pm) during the week and at least 4 days from Monday through Saturday.
As far as your actual dealership location, you must meet these requirements:
- A permanently enclosed building (owned or leased)
- If the building is a trailer it must be anchored to the ground with wheels removed
- A display area large enough to display vehicles being sold (no strict size or number of vehicles is given)
- The display area must be visible from the nearest public street
- Enclosed garages don't qualify as a display lot as the display vehicles must be visible
- The same display lot can be used if you're licensed as an auction dealer but the vehicles must be clearly separated
- The sign must have the name of the business used in advertising but can be a DBA registered with the Secretary of State
- The letters of the sign must be at least 6 inches in height
- With the initial application you must include a clear picture no larger than 8 by 10 inches showing the building, the display lot and the sign
When it comes to the sign, a banner is not allowed unless you have ordered your actual sign and can show the purchase order.
Auction dealers have a few additional requirements:
Two identical signs, with letters at least 6 inches high, saying:
"Attention Buyers: Vehicles sold at this auction may not have had a safety inspection."
Each sign must be a minimum of two feet by two feet in size and clearly displayed to the public.
If you're an auction dealer and a vehicle dealer, you have to keep your records for each license type completely separate. This is important when your dealership is inspected.
Step 3 - The Certificate of Dealer Educational Seminar Completion
If you're applying for the first time as a used vehicle dealer, you must provide proof of attending a Dealer Educational Seminar approved by the Department of Revenue.
This seminar will include the details of:
- Dealer licensing requirements
- The rules for enforcing the licensing requirements
- Any new codes or laws the Department of Revenue implements
You must show completion of this seminar within the last 12 months before you submit your application.
The following license classifications are not required to attend a seminar:
- New vehicle dealers
- New franchise powersport dealers
- Wholesale dealers
- Wholesale and retail auction dealers
Step 4 - Insurance Requirements
There are two insurance requirements you must meet, a minimum garage liability policy and potentially a surety bond requirement.
The Garage Liability Policy
Obtaining this policy does not apply to trailer, auction or manufacturer licenses. Every other license is required to have an active policy. The Department of State does not set a strict minimum policy coverage, so just ensure that your level of coverage is adequate for your business.
Vehicle Dealer Surety Bond
A surety bond is a unique type of insurance. It's a legal contract you're required to purchase as a tool to hold all licensed vehicle dealers accountable to not committing dealership fraud against their customers or the state of Missouri.
Examples of fraud can include:
- Stealing from customer deposits or requiring fake deposits
- Selling vehicles with no or falsified titles
- Even purposefully choosing to not pay sales taxes on vehicles sold
The amount of this surety bond must be $50,000, no more and no less.
| Bond Amount | Rate | Price |
|---|---|---|
| $50,000 | 1.0% | $500 |
| $50,000 | 2.0% | $1,000 |
| $50,000 | 3.0% | $1,500 |
| $50,000 | 4.0% (high end) | $2,000 |
Learn more about the Missouri vehicle dealer bond requirement and get your price quote today.
If you're getting licensed in neighboring states, learn about those auto dealer bond requirements:
- Illinois vehicle dealer bond
- Nebraska vehicle dealer bond
- Iowa vehicle dealer bond
- Arkansas vehicle dealer bond
- Oklahoma vehicle dealer bond
Line of Credit
You can provide a line of credit rather than purchase a surety bond. But when it comes to the line of credit vs a surety bond, the line of credit is typically a lot more expensive.
In most cases you must fully fund the line of credit. This means you would need to deposit the fully $50,000 in a bank account. This is typically not the best option for new dealerships.
The surety bond will cost only a small fraction of the $50,000 required amount.
Step 5 - Background Check Information
A criminal background check is required of all owners listed on the application. This check must be within a 6 month period from the date or the application submission.
You must use the Missouri State Highway Patrol's Automated Criminal History Site (MACHS).
To avoid delays in your license it's best to get your background check done in the beginning of the licensing process along with purchasing your auto dealer surety bond.
Special Event Auction Licenses
This license is classified by the following:
- 90% of vehicle auctioned are at least 10 years or older
- No more than 3% of the total vehicles auctioned are owned and titled by the auction business or its owners
- The auction duration is no more than 3 consecutive days and held no more than 3 times per calendar year
This is a unique license because of the following major changes:
- $1,000 licensing fee
- A bond amount increase to $100,000
Step 6 - Application Fees
| Application Month | Fee | Boat Dealer/Manufacturer Fee |
|---|---|---|
| January | $150 | $80 |
| February | $137.50 | $73.33 |
| March | $125 | $66.67 |
| April | $112.50 | $50 |
| May | $100 | $53.30 |
| June | $87.50 | $46.67 |
| July | $75 | $40 |
| August | $62.50 | $33.33 |
| September | $50 | $26.67 |
| October | $37.50 | $20 |
| November | $25 | $13.33 |
| December | $12.50 | $6.67 |
Once you've been in business for three years, you will be issued a two year licensed with the following fees:
| Application Month | Fee | Boat Dealer/Manufacturer Fee |
|---|---|---|
| January | $300 | $160 |
| February | $287.50 | $153.33 |
| March | $275 | $146.67 |
| April | $262.50 | $140 |
| May | $250 | $133.33 |
| June | $237.50 | $126.67 |
| July | $225 | $120 |
| August | $212.50 | $113.33 |
| September | $200 | $106.67 |
| October | $187.50 | $100 |
| November | $175 | $93.33 |
| December | $162.50 | $86.67 |
When You're Ready To Get Your Bond We Ready To Be Your Partner
We are Surety Bonds Direct, a specialized surety agency. It's our job to make sure you pay the lowest price for your vehicle dealer surety bond.
Remember, it has to be $50,000 so your goal is to pay as little as you can. That is what we'l help you do, plus we'll manage your bond for you from year to year and ensure it remains active.
Complete an online quote form so we can start finding you the lowest price. You can also call 1-800-608-9950 if you prefer to speak with a bond specialist.
You do not have to purchase with us, we just want the chance to earn your business for the years to come.
