Mississippi Motor Vehicle Dealer Surety Bond
A Mississippi motor vehicle dealer surety bond is a required license bond for any person or business engaged in the purchase or sale of motor vehicles for profit within the State of Mississippi. Like Louisiana and Oklahoma, Mississippi operates a split regulatory structure: the Mississippi Motor Vehicle Commission (MMVC) regulates new (franchise) dealers, while the Mississippi Department of Revenue (DOR), Motor Vehicle Licensing Bureau regulates used and wholesale dealers. Bond amounts and types differ between the two agencies. Surety One, Inc. offers quick, no-hassle underwriting for all Mississippi motor vehicle dealer bonds.
Bond Amount & Requirements
MMVC — New (Franchise) Dealer Bonds
Mississippi Code Section 63-17-75 requires all new motor vehicle dealer license applicants to file a corporate surety bond with the MMVC on a bond form approved by the commission. The bond is executed in the name of the State of Mississippi for the benefit of any aggrieved party and is conditioned upon the dealer complying with the Mississippi Motor Vehicle Commission Law.
| Bond Amount | License Type | Regulating Body |
|---|---|---|
| $25,000 | New Motor Vehicle Dealer (per location) | MMVC |
| $100,000 | New MV Dealer — Blanket Bond (all locations, same capacity) | MMVC |
DOR — Used & Wholesale Dealer Bonds
Used motor vehicle dealers, wholesale dealers, and other designated agents must file a Bond of Designated Agent with the Mississippi Department of Revenue. This bond guarantees compliance with the Mississippi Motor Vehicle Title Act and ensures ethical, lawful business conduct.
| Bond Amount | License Type | Regulating Body |
|---|---|---|
| $15,000 | Used Motor Vehicle Dealer (Designated Agent) | DOR |
| $15,000 | Wholesale Motor Vehicle Dealer (Designated Agent) | DOR |
Important — $100,000 Blanket Bond Option: New (franchise) dealers operating at multiple locations of the same capacity may choose to provide a single $100,000 blanket surety bond covering all locations in lieu of separate $25,000 bonds for each location. This option is unique to the MMVC and can provide significant cost savings for multi-location dealerships. Also note that bond proceeds are only paid upon receipt by the MMVC of a final judgment from a Mississippi court of competent jurisdiction — not upon the surety’s internal investigation.
Who Needs This Bond?
Mississippi defines a motor vehicle dealer as any individual or entity that participates in the purchase or sale of motor vehicles for profit, regardless of how many vehicles are purchased or sold during a calendar year. This means there is no minimum vehicle threshold — even one vehicle sold for profit can trigger licensing requirements.
- New (franchise) motor vehicle dealers — $25,000 bond per location (MMVC)
- Used motor vehicle dealers — $15,000 Designated Agent bond (DOR)
- Wholesale motor vehicle dealers — $15,000 Designated Agent bond (DOR)
How Much Does the Bond Cost?
The cost of a Mississippi motor vehicle dealer surety bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by underwriting factors including credit score, financial strength, and experience. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
Mississippi Dealer License Requirements
Requirements vary by commission and license type:
New Dealers (MMVC)
- Completed license application with applicable fees
- Bona fide franchise agreement with a manufacturer, distributor, or wholesaler
- Financial standing and business integrity documentation
- Adequate display space and repair/servicing facilities
- $25,000 surety bond per location (or $100,000 blanket bond)
- Applications reviewed at monthly MMVC board meeting (third Wednesday; submit by prior Friday)
Used & Wholesale Dealers (DOR)
- Motor vehicle dealer permit and tags application through the DOR
- $15,000 Bond of Designated Agent
- Established place of business
- Applicable permit fees
Filing, Renewal & Cancellation
New dealer bonds (MMVC) must be filed with the commission and become effective upon licensing. The MMVC bond cannot be canceled by the dealer or surety prior to the end of the bond term — to seek early release, the surety must request release of liability from the commission. If a license is issued in December, it is valid through the following calendar year; otherwise, licenses renew annually. Renewals open November 1st each year.
Used dealer bonds (DOR) are continuous and remain in effect until canceled by the surety with 30 days’ notice. The aggregate liability of the surety, regardless of the number of years the bond is in force, shall not exceed the bond amount.
Bond Claims
For MMVC (new dealer) bonds, bond proceeds are paid only upon receipt by the commission of a final judgment from a Mississippi court of competent jurisdiction against the principal and in favor of an aggrieved party. This court-judgment requirement is a significant procedural distinction. The aggregate liability of the surety, regardless of the number of years the bond has been in force, shall not exceed the bond amount. For DOR (used/wholesale) bonds, claims are processed through the Department of Revenue.
Mississippi Motor Vehicle Commission (MMVC)
New (Franchise) Dealers
1755 Lelia Drive, Suite 200
Jackson, MS 39216
Phone: (601) 987-3995
Email: info@mmvc.ms.gov
Web: mmvc.ms.gov
Mississippi Department of Revenue (DOR)
Used & Wholesale Dealers (Designated Agent)
Motor Vehicle Licensing Bureau
P.O. Box 1033
Jackson, MS 39215-1033
Phone: (601) 923-3750
Web: dor.ms.gov
Surety One, Inc. is the Mississippi surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for both MMVC new dealer bonds and DOR designated agent bonds and all other license bond classes. Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com, or click here to chat with a live underwriter (no bots!) for immediate assistance. We’re here to support your business success.
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