Kansas Auto Dealer Bond— $50,000 -- Increased 67% Effective Jan 2022
Kansas increased its dealer bond by 67% -- from $30,000 to $50,000 -- effective January 1, 2022 under K.S.A. 8-2404. The increase brought Kansas in line with neighboring Missouri ($50K) and Nebraska ($50K). All dealer types -- new, used, wholesale, salvage -- file the same $50,000 surety bond on Form D-30.
Compare: Oklahoma ($25K) | Colorado ($50K) | Iowa ($75K)
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Official Kansas Requirements
"No vehicle dealer shall engage in business in this state without first obtaining a license... and filing a surety bond in the amount of $50,000."Kansas Department of Revenue, Division of Vehicles • K.S.A. 8-2404
The 2022 Bond Increase: What Changed and Why It Matters
For years, Kansas required a $30,000 dealer bond -- a figure that had not been adjusted despite rising vehicle prices, higher transaction values, and increased consumer protection expectations. On January 1, 2022, the legislature increased the requirement to $50,000 under K.S.A. 8-2404, a 67% jump that represented one of the largest single-year bond increases in any state.
The increase had immediate premium implications. A dealer who previously paid $300/year at 1% on a $30K bond now pays $500/year for the same rate on a $50K bond. At higher rate tiers, the impact is more pronounced: a dealer paying 5% went from $1,500 to $2,500 annually. For more on how credit determines your specific premium, see our surety bond cost guide.
The change also brought Kansas into alignment with its neighbors. Before 2022, Kansas was an outlier at $30,000 while Missouri, Nebraska, and Colorado all required $50,000. Now the $50,000 figure is the standard across the central corridor.
All dealers who held $30,000 bonds before the change were required to upgrade at their next renewal. If you are still carrying a $30,000 bond for any reason, you are not compliant and the Division of Vehicles may suspend your license.
Still Carrying a $30,000 Bond? You Are Non-Compliant.
The transition period for the $30K-to-$50K upgrade has long passed. Every active Kansas dealer should now hold a $50,000 bond. If your bond still shows $30,000, it does not satisfy K.S.A. 8-2404 and the Division of Vehicles can suspend your license at any time.
We can issue a replacement $50,000 bond on Form D-30 the same day you apply. Do not wait for a renewal cycle -- upgrade now to avoid enforcement action. For a walkthrough, see how to get a surety bond. Kansas notaries also need a Kansas notary bond. Kansas contractors need a Kansas contractor license bond.
Kansas Division of Vehicles: Dealer License Requirements
Kansas requires all dealers to file the $50,000 bond on Form D-30 alongside their application (Form D-17A). A surety bond is not insurance -- it protects consumers, not the dealer. The 5-vehicle rule applies: anyone selling more than 5 vehicles in a 12-month period must be licensed. This includes new vehicle dealers, used dealers, wholesale dealers, salvage dealers, and manufactured home dealers -- all at the same $50,000 bond level.
You can also discover all surety bonds available through our platform. The county treasurer must verify you have no unpaid personal property taxes. You need three credit references, insurance on your premises and inventory, and zoning approval. The Division of Vehicles conducts a facility inspection before issuing your license. See our auto dealer bond cost page or use our auto dealer bond calculator to estimate your premium based on credit.
Division of Vehicles Checklist
- Complete Application for Vehicle Dealer License (Form D-17A)
- $50,000 surety bond on Form D-30 approved by Kansas Department of Revenue
- Established place of business with permanent signage
- Insurance on place of business and all vehicle inventory
- Three credit references
- County treasurer verification -- no unpaid personal property taxes
- Kansas sales tax registration certificate
- Business entity filing with Kansas Secretary of State
- Zoning approval from local jurisdiction
- Background check for all owners and principals
- Facility inspection by Division of Vehicles
How to Get Your Kansas Dealer License
Get Your $50,000 Bond (Form D-30)
Apply online for same-day approval. The bond must be from a surety company registered in Kansas and approved by the Department of Revenue. We handle the filing with the Division of Vehicles.
Complete Form D-17A
Fill out the Application for Vehicle Dealer License. Gather your three credit references, county treasurer tax clearance, insurance certificates, zoning approval, and Kansas sales tax registration.
Submit & Pass Inspection
Mail your complete application package to the Division of Vehicles Dealer Licensing Bureau. Schedule and pass the mandatory facility inspection. Ensure your permanent sign meets requirements.
Kansas Dealer Bond Questions: The 2022 Increase and Beyond
What the $30K-to-$50K change means for your premium, compliance, and renewal
Why did Kansas increase the dealer bond by 67% in 2022?
Kansas increased the required dealer bond from $30,000 to $50,000 effective January 1, 2022 under K.S.A. 8-2404. The legislature determined the previous $30,000 amount -- unchanged for many years -- was insufficient given rising vehicle prices and transaction values. The 67% increase brought Kansas in line with neighboring states like Missouri and Nebraska (both $50,000) and provided stronger consumer protection against dealer fraud.
How much does a Kansas $50,000 dealer bond cost after the increase?
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 means premiums are roughly 67% higher than what dealers paid under the old $30K amount. Use our auto dealer bond calculator for a personalized estimate.
What is Kansas Form D-30?
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.
What triggers the Kansas dealer license requirement?
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.
What dealer license types does Kansas offer?
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.
Am I still compliant if I have an old $30,000 bond?
No. All active Kansas dealers were required to upgrade from $30,000 to $50,000 at their next renewal after January 1, 2022. If you are still carrying a $30,000 bond, you are non-compliant with K.S.A. 8-2404. The Division of Vehicles may suspend your license. Contact us immediately to upgrade -- we can issue a replacement $50,000 bond on the same day.
How do I renew my Kansas dealer bond?
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.
What are the Kansas place of business requirements?
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.
Official Kansas Resources
Auto Dealer Bonds in Neighboring States
New Bond or $30K-to-$50K Upgrade -- Same-Day Either Way
$50,000 on Form D-30. K.S.A. 8-2404 compliant. From $500/year with good credit.
Get Your Auto Dealer Bond Quote
Same-day DMV approval available • All dealer types
Pay only after your bond is issued • No obligation • 2 minutes