State laws require a Minnesota motor vehicle dealer bond, certain liability insurance coverages and a commercial lot before an individual can engage in automobile sales. The regulating statute defines “dealer” as licensed new motor vehicle dealers, used motor vehicle dealers, motor vehicle brokers, wholesalers, auctioneers, lessors of new or used motor vehicles, scrap metal processors, used vehicle parts dealers, and salvage pools (MN 168.27). Regardless of what license class you fall within, the Minnesota motor vehicle dealer bond is mandatory. The surety bond must be issued by a corporate surety approved by the registrar of motor vehicles. In the case of boat trailer, snowmobile trailer, horse trailer or motorized bicycle dealers, or dealers in trailers with a manufacturer’s rated carrying capacity under 15,000 pounds designed to transport small construction or farm equipment, the Minnesota motor vehicle dealer bond must be written in the amount of $5,000, and for all other license classes in the amount of $50,000. The surety bond must guarantee faithful performance by the dealer of the obligations imposed on persons engaged in motor vehicle transactions by the laws of Minnesota, including the conduct required of a dealer by law and other statutory sections governing the sale or transfer of motor vehicles, and the payment of all taxes, license fees, and penalties. The Minnesota motor vehicle dealer bond must be for the benefit of the State and any transferor, seller, or purchaser of a motor vehicle for monetary damages caused by failure of the dealer to meet his or her obligations. Proceedings on the forfeiture of the surety bond must be filed in the district court of the county wherein the business of the dealership was carried on, or if in more than one county, the county in which the offense occurred. National surety leader, Surety One, Inc. offers motor vehicle dealer bonds all states where they are required for licensing under state law or administrative codes. Our programs allow us to offer you bond support regardless of your credit and financial condition. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for an Minnesota motor vehicle dealer bond application or for information on any surety bond need.
