What is a Dealer Surety Bond, how much are they, and where can I get one?
You must provide an original surety bond, or irrevocable letter of credit, in the amount of $25,000 before obtaining a Missouri Auto Dealers License. These legal documents can satisfy any legal claims against your dealership by unsatisfied customers. Don’t worry, if you operate your business with complete integrity, honesty, and the highest ethical standards, you will probably never have claims against your Dealer Surety Bond or Irrevocable Letter of Credit. To obtain an Irrevocable Letter of Credit, you will need to contact your banker. Some banks require $25,000 worth of assets before issuing a letter of credit. Most dealers in Missouri choose a Dealer Surety Bond. An insurance agent or bonding company will be able to provide you with an original surety bond. The price for your Dealer Surety Bond depends on your credit score. If you have good credit, the price for your bond should be around $150.00. If you have bad credit, the cost of obtaining your bond could be much higher. To obta
