Minnesota Auto Dealer Bond$50,000 DVS Requirement

Minnesota auto dealer bonds ($50,000) cost $500-$5,000 annually depending on credit. With excellent credit (750+), expect $500-$1,000 (1-2%). Good credit (680-749) costs $1,000-$2,000 (2-4%). Fair credit (620-679) ranges $2,000-$3,500 (4-7%). Lower credit may require up to $5,000 (10%).

Form PS2446 is the official Minnesota "Motor Vehicle Dealer License Surety Bond" form issued by the Department of Public Safety, Driver and Vehicle Services (DVS). This is the specific bond form that must be completed, signed by the surety company's agent, notarized, and submitted with your dealer license application. We provide the completed PS2446 form as part of your bond issuance.

Minnesota requires several DVS-specific forms: the Dealer License Application, Surety Bond (PS2446), Commercial Location Checklist (PS2410), Zoning Verification (PS2421), Workers' Comp Certification (PS2420), Plate Application (PS2405), Franchise Agreement (PS2404, if applicable), and Lease Verification (PS2407) or proof of ownership. All forms must be submitted together as a complete package to DVS.

Yes, if you sell or lease more than 5 motor vehicles within any 12-month period, Minnesota Statute §168.27 requires you to hold a dealer license. This applies to both new and used vehicles. Operating without a license is a gross misdemeanor in Minnesota and can result in fines and criminal penalties.

Minnesota issues licenses for new motor vehicle dealers (requires manufacturer franchise), used motor vehicle dealers, motorized bicycle dealers, and scrap metal processors. Used vehicle dealers may sell, lease, broker, wholesale, or auction used motor vehicles. All standard motor vehicle dealers require a $50,000 bond, while motorized bicycle, boat, and snowmobile trailer dealers require only a $5,000 bond.

The total initial cost is $250: a $100 application fee plus a $150 annual license fee, as specified in Minn. Stat. §168.27, Subd. 11(h). Additional costs include the surety bond premium ($500-$5,000), insurance, and demonstration/in-transit plate fees. Annual renewals require the $150 license fee plus your bond renewal premium.

Yes, we secure Minnesota dealer bonds for applicants with all credit levels, including scores below 600. We work with multiple surety carriers that specialize in higher-risk applicants. Rates will be higher for lower credit scores, but approval is often possible. Our underwriters evaluate the complete picture, not just credit scores.

The Minnesota DVS Dealer Unit can be reached at (651) 201-7800 or by email at DVS.DealerUnit@state.mn.us. They handle all questions about the dealer licensing process, application status, and compliance requirements. Their office processes applications and issues licenses for all dealer types in Minnesota.