Missouri Auto Dealer Bond and License Requirements

Who the bond protects and how a claim is paid

The bond is executed in the name of the State of Missouri for the benefit of all aggrieved parties, not in the name of the Department of Revenue. It indemnifies losses caused by a dealer's acts when those acts are grounds for suspending or revoking the license. Those grounds are set out in RSMo 301.562. Total payouts can never exceed the bond amount.

In most cases, the bond pays after the department receives a final judgment from a Missouri court against the dealer and in favor of an aggrieved party. There is one exception: when a dealer fails to pass title under a 30-day delivery agreement, the department can order payment to the buyer or an interested lienholder without a court judgment, up to the greater of the amount required to release the purchase-money lien or the price the buyer paid. The agreement must state that if title is not passed within those 30 days, the sale is voidable at the buyer's option and the dealer must buy the vehicle back.

Fees, renewal, and expiration

The one-year license fee depends on the month you apply. A January application is $150 for a motor vehicle, trailer or powersport dealer and $80 for a boat dealer, and the fee drops each month after that. You file a separate application, with its own fee, for each license type you want. A two-year license filed in January is $300, or $160 for a boat dealer.

To stay eligible to renew, motor vehicle dealers must make at least eight sales a year, and boat, trailer, and powersport dealers at least six. A dealer who has been in business three years is issued a two-year license at that renewal. All dealer licenses and plates expire December 31 of the expiration year, and Missouri law provides no grace period. If your license lapses, you must title and pay tax on every vehicle, trailer, or boat you buy and sell while unlicensed.

The current (November 2025) edition of the Dealer Operating Manual sets a $25 penalty for renewals filed on or after November 3 but before December 31. Renewals after December 31 carry a $50 penalty. Because that cutoff date can shift by calendar year, check the current manual before you rely on it.

Dealer plates cost $50 for the first plate and $10.50 for each additional plate. You may receive up to two plates at first. A third plate becomes available after your fifteenth qualified transaction, for $10.50. Beyond that, you are limited to one additional plate per ten qualified transactions a year. Separately, Missouri caps the administrative fee a dealer may charge a customer at $620.79 for 2026.

Steps

1. Choose your license type. File a separate application, with its own fee, for each type of dealer license you need.
2. Set up your location. Secure a permanent enclosed building you own or lease. Add an exterior sign in letters at least six inches high.
3. Pass inspection. Have a uniformed Missouri State Highway Patrol member certify the location. Submit that certification on Form 5748 with your application.
4. Gather your documents. Include a dealer garage liability policy unless you are a trailer dealer, auction, or manufacturer. Add a criminal record for each owner, issued within six months, from the Highway Patrol's MACHS system or the criminal-records agency in the owner's state of residency. Used motor vehicle dealers also include proof of the educational seminar.
5. Post your bond. Furnish a $50,000 surety bond or irrevocable letter of credit on the department's form. Make sure it runs through December 31 of the licensure year or is non-expiring.
6. Apply and pay. Submit through MyDMV. Pay the fee for your license type and application month.
7. Wait for the decision. For a new business whose application meets every requirement, the law gives the department eight working hours from receipt to grant or deny the license.

Sources

• Missouri Revised Statutes §301.560
• Missouri Revised Statutes §301.210
• Missouri Revised Statutes §301.562
• Missouri DOR Dealer Operating Manual
• Missouri DOR Form 4682
• Missouri DOR Dealers & Lienholders

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