Kansas Auto Dealer Bond$50,000 (Increased Jan 2022)

Kansas increased the required dealer bond from $30,000 to $50,000 effective January 1, 2022 under K.S.A. 8-2404. The increase was part of broader consumer protection legislation to ensure adequate financial recourse for consumers harmed by dealer fraud. The previous $30,000 amount had not been adjusted in many years and was insufficient given rising vehicle prices and transaction values.

The annual premium ranges from $500 to $5,000 (1-10% of the bond amount). Excellent credit (750+) gets rates of $500-$1,000 (1-2%). Good credit (680-749) costs $1,000-$2,500 (2-5%). Fair credit (620-679) ranges $2,500-$3,500 (5-7%). Challenged credit may require rates up to 10%. The 2022 increase from $30K to $50K means premiums are higher than they were before the change.

Form D-30 is the official Kansas Motor Vehicle Dealer Bond form. It must be completed by a surety company registered and approved to do business in Kansas. The original signed bond is mailed to the Kansas Department of Revenue, Division of Vehicles, Dealer Licensing Bureau. This form is required with your initial dealer license application (Form D-17A) and must be maintained throughout your license period.

Under K.S.A. 8-2404, any person who sells more than 5 vehicles in a 12-month period in Kansas must obtain a dealer license, which includes the $50,000 surety bond. This applies to anyone regularly engaged in the business of buying, selling, or exchanging motor vehicles, whether new, used, or wholesale.

Kansas offers several dealer license categories: new vehicle dealer (franchise), used vehicle dealer, wholesale dealer, salvage vehicle dealer, and manufactured home dealer. All vehicle dealer types require the same $50,000 bond on Form D-30. The application process uses Form D-17A for all categories.

Kansas requires an established place of business with a permanent sign displaying your business name. You must have insurance covering your premises and all inventory. The location must comply with local zoning ordinances for vehicle sales. The Division of Vehicles will conduct a facility inspection before issuing your license.

Kansas dealer bonds renew annually. We send renewal reminders 60 days before expiration and most renewals are approved within 1 business day. If your bond lapses, the Division of Vehicles will suspend your license until a new bond is filed. Renewal premiums are based on your current credit and claims history.

If you were licensed before January 1, 2022 with a $30,000 bond, you were required to upgrade to $50,000 at your next renewal. All active Kansas dealers should now have a $50,000 bond in place. If you are still carrying a $30,000 bond, contact us immediately to upgrade before the Division of Vehicles flags your license.