Mississippi Auto Dealer Bond and Car Dealer License
To get a car dealer license in Mississippi, you post a dealer bond. Oversight here is split: the Motor Vehicle Commission licenses dealers and takes one bond, and the Department of Revenue issues dealer tag permits and takes another.
- Who requires it: Mississippi Motor Vehicle Commission (dealer licenses) and Mississippi Department of Revenue (dealer tag permits); Miss. Code Ann. § 63-17-75.
- Timing: We submit complete applications to the carrier promptly; most quotes within one business day.
Official Mississippi Requirements
"The bond shall be executed in the name of the State of Mississippi for the benefit of any aggrieved party."Mississippi Motor Vehicle Commission, Dealer/Franchise statute (Miss. Code Ann. § 63-17-51 et seq.) • View Official Requirements →
Two agencies, each with its own bond
Mississippi runs dealer oversight through two agencies. The Motor Vehicle Commission licenses dealers under the Mississippi Motor Vehicle Commission Law and takes a bond filed with the commission. Under the Commission's statute (Miss. Code Ann. § 63-17-75), new applications for a license as a new, used or wholesale motor vehicle dealer are filed with a $25,000 corporate surety bond on the commission's bond form. An applicant for licenses at multiple locations may instead choose one $100,000 bond covering all licensed locations of the same capacity, in lieu of separate bonds for each location.
The Department of Revenue issues dealer tag permits and treats every licensed dealer as a designated agent of the Department. Under the Department's rule, every licensed dealer, including wholesale dealers, must carry a surety bond in the amount the Department sets, but in no case less than $15,000. The Department's dealer license packet sets the Bond of Designated Agent at $15,000.
Because the Commission's statute lists "new, used or wholesale" applicants at $25,000 while the Department's rule and form set a $15,000 designated agent bond, used and wholesale dealers should confirm the amount with both agencies before filing.
Who the bond protects and how a claim works
The Commission's bond is in effect once you are licensed and is conditioned on your complying with the Mississippi Motor Vehicle Commission Law. It is an indemnity for any loss sustained by a person because of acts of the bonded dealer when those acts are grounds for suspension or revocation of the license. It is executed in the name of the State of Mississippi for the benefit of any aggrieved party. The surety's aggregate liability cannot exceed the bond amount, no matter how many years the bond has been in force. The bond proceeds are paid once the Commission receives a final judgment from a Mississippi court against the dealer and in favor of an aggrieved party. On the Department side, the Bond of Designated Agent runs to the State of Mississippi as obligee in the sum of $15,000, and the surety may cancel it by giving 30 days' written notice to the Department, effective only as to later acts.
The license steps and documents
For a Commission dealership application, you file a $25,000 security bond along with your franchise agreement. The Commission reviews applications at its monthly board meeting, held on the third Wednesday of each month, and all documents are due no later than the Friday before that meeting to make the agenda.
For a Department dealer permit, you complete the eight-hour educational seminar run by the Mississippi Independent Auto Dealers Association (MIADA) and hold a certificate from the preceding 12 months. You must have the Bond of Designated Agent executed by an insurance company in the amount of $15,000, with a seal affixed and a valid power of attorney attached. You also keep motor vehicle liability insurance providing blanket coverage on vehicles operated on Mississippi streets and highways, including dealership inventory. The Commission separately requires new, used and wholesale dealers to maintain blanket motor vehicle liability insurance on vehicles operated on public streets and highways.
Fees
The Commission's license fee for a motor vehicle dealer is $100. On the Department side, the permit fee is not to exceed $100.
Renewal and expiry
The Commission's statute says its licenses expire on December 31 following the date of issue. The Department's dealer tag permits and tags expire on October 31. The Department's dealer application is for the year beginning November 1.
Your place of business
The Department licenses only Mississippi residents as motor vehicle dealers, including wholesale dealers. Wholesale-only dealers must meet all the same requirements but may not retail to individuals; they are not required to have a physical location and may keep an inventory of only two vehicles with one wholesale dealer tag. If you plan a retail lot, confirm the location and premises requirements with the Department of Revenue.
Steps
- Check both agencies. Each agency runs its own dealer process: the Commission for dealer licenses, the Department for dealer tag permits, each with its own bond.
- Post your bond. The Commission's statute lists a $25,000 bond, or one $100,000 bond you may choose for several locations, and the Department's rule sets a designated agent bond of not less than $15,000.
- Complete the seminar (Department path). Finish the eight-hour MIADA educational seminar and keep your certificate from the preceding 12 months.
- Gather documents. Include your franchise agreement for the Commission, and for the Department attach the bond with its seal and power of attorney plus proof of blanket liability insurance.
- Submit on the calendar. For the Commission, file everything by the Friday before the third-Wednesday board meeting.
- Pay the fee. The Commission's dealer license fee is $100, and the Department's permit fee is not to exceed $100.
- Track renewal. Commission licenses expire December 31 following issue; Department permits and tags expire October 31.
Frequently asked questions
How do I get a car dealer license in Mississippi?
The Motor Vehicle Commission licenses dealers and the Department of Revenue issues dealer tag permits, and each agency takes its own bond. The Commission reviews applications at its third-Wednesday board meeting, with documents due the Friday before.
How much is the dealer bond?
The Commission's statute lists a $25,000 bond for new, used or wholesale applicants, while the Department's rule sets a designated agent bond of not less than $15,000 and its packet lists $15,000.
Who does the bond protect?
The Commission's bond is executed in the name of the State of Mississippi for the benefit of any aggrieved party, and it indemnifies losses from dealer acts that are grounds for license suspension or revocation. The surety's total payout cannot exceed the bond amount.
When does my license expire?
Commission licenses expire December 31 following the date of issue; Department dealer tag permits and tags expire October 31.
What does the bond cost?
What you pay is a share of the bond amount, set by the surety from your credit and finances.
Do wholesale-only dealers need a lot?
No — wholesale-only dealers are not required to have a physical location and may keep an inventory of only two vehicles with one wholesale dealer tag, though they must meet all other requirements and may not retail to individuals.
What if I only dismantle vehicles?
A "Dismantler Only" who signs the no-sales affidavit has the designated agent bond waived, and no dealer tags are issued.
Does Mississippi require dealer training?
For a Department dealer permit, you complete the eight-hour MIADA educational seminar and hold a certificate from the preceding 12 months.
How do I get a Mississippi auto dealer bond?
Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.
What happens after I apply?
We submit complete applications to the carrier promptly; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.
Sources
- Mississippi Motor Vehicle Commission, Dealer/Franchise statute
- Mississippi Motor Vehicle Commission, Dealer application
- Mississippi Motor Vehicle Commission, MMVC law page
- Mississippi Department of Revenue, Motor Vehicle Dealer License Packet
- Mississippi Department of Revenue, Dealer Booklet
- Mississippi Secretary of State, Administrative Code, Title 35 Part VII (DOR rule)
Mississippi dealers: vehicles without a title
Trade-ins and auction units sometimes arrive with a missing or defective title. Read how a bonded title works on the Mississippi bonded title page, or read the vehicle title bond overview.
Four situations dealers run into have their own guides: salvage and rebuilt vehicle titles, a trade-in from another state with no title, trailer title rules and VIN corrections on a trade-in.
Stocking more than cars? See titling a boat that arrives without paperwork, antique vehicle title options and abandoned vehicle titles.
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All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
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