Every applicant wishing to deal new or used vehicles must provide a Kansas vehicle dealer bond. “Vehicle dealer” means any person who: (1) For commission, money or other thing of value is engaged in the business of buying, selling or offering or attempting to negotiate a sale of an interest in vehicles; or (2) for commission, money or other thing of value is engaged in the business of buying, selling or offering or attempting to negotiate a sale of an interest in motor vehicles as an auction motor vehicle dealer KSA §8-2401. The Kansas vehicle dealer bond must be written in such form, amount and with such sureties as the Director approves, conditioned upon the applicant complying with the provisions of the statutes applicable to the licensee and as indemnity for any loss sustained by a retail or wholesale buyer or seller of a vehicle by reason of any act by the licensee in violation of law which would constitute grounds for suspension or revocation. The amount of the Kansas vehicle dealer bond must be as follows: (1) For any new applicant $30,000; or (2) for any current licensee, $15,000, until the renewal date of the existing bond, then $30,000 (KSA §8-2404). The surety bond must be executed by a corporate surety authorized to do business in the state of Kansas and written in the name of the State of Kansas for the benefit of any aggrieved retail or wholesale buyer or seller of a vehicle. The obligation is not cumulative, being limited in the aggregate for all breaches of the conditions of the bond to the face amount of such Kansas vehicle dealer bond. The surety has the right to cancel the surety bond by giving 30 days’ notice to the Director, thereafter being relieved of liability for any breach of condition occurring after the effective date of the cancellation. These bonding requirements do not apply to first or second stage manufacturers, factory branches, factory representatives or salespersons. The vehicle dealer bond form does not contain a forfeiture provision, guaranteeing clearly “indemnity for any loss sustained”.
Kansas surety leader, Surety One, Inc. offers motor vehicle dealer bonds in all states where they are required. Our special programs allow us to offer you surety bonding regardless of your credit condition. Need to know the bond requirements for dealers in any state? Click here for our MVD bond guide. We also offer certificate of title bonds and lien release bonds which are sometimes needed in the course of your dealership operations. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a Kansas vehicle dealer bond application or for information on any surety need.
