As the Land of 10,000 lakes, Minnesota is a beautiful state of diverse landscape. It is the 12th largest state in terms of geography but 22nd most populous state, making it a fairly sparsely populated state. To get around the North Star state, a car is a must have. Being an auto dealer in the state is a profitable business. However, to be a licensed auto dealer, a motor vehicle dealer bond is required.
The 2022 Minnesota Statutes 168.27 Subd. 24 requires that all licensed motor vehicle dealers need to maintain a $50,000 motor vehicle dealer bond and all snowmobile, boat trailer, horse trailer or motorized bicycle dealers need to maintain a $5,000 bond.
The bond is to ensure that the incensed dealers conduct transactions based on the law of Minnesota, specifically sell the vehicle without any fraud, transfer the vehicles title accordingly to the buyer, pay all taxes, license fees and penalties on time. If any financial harm is created by the bonded dealer, a claim can be filed to compensate the state of Minnesota or the individuals (i.e., buyers) harmed by the bonded dealers.
You only need a bond if you need to obtain a Minnesota Motor Vehicle Dealer License Surety Bond. The Minnesota Department of Public Safety states that you only need a license if the any of the following exists
If any of the above rings true to you, you need to obtain a dealer license and therefore a bond.
The Florida Department of Public Safety Driver and Vehicle Services Dealer Unit is responsible for Minnesota Motor Vehicle Dealer License. You can reach out to them using the contact information below:
Driver and Vehicle Services Dealer Unit
445 Minnesota Street, Suite 186
Saint Paul, MN 55101-5186
DVS.Dealerquestion@state.mn.us
(651) 201-7800
There are tow different bond amounts in Minnesota, each covering a number of different license types.
$50,000 bond
$5,000 bond
You will need to submit the bond to the Minnesota Department of Public Safety, at the address below. Please note that the Minnesota Motor Vehicle Dealer Bond requires a notarized signature of the both the Surety Attorney-in-Fact and the Principal.
Minnesota Department of Public Safety
Driver and Vehicle Services
445 Minnesota Street, Suite 186
Saint Paul, MN, 55101
You can cancel the bond as long as a 30 day written notice is given to the Registrar of Motor Vehicles of the State of Minnesota. The bond will cancel at the end of the 30 day period.
