The bond you file depends on who licenses you, because Mississippi splits motor vehicle dealers between two agencies. If you sell new or franchised vehicles, you are licensed by the Mississippi Motor Vehicle Commission (MMVC) and must file a $25,000 surety bond under Miss. Code Ann. 63-17-75, on the MMVC Bond of New Motor Vehicle Dealer form. If you sell used vehicles or operate wholesale-only, you are licensed by the Mississippi Department of Revenue (DOR) and must file a $15,000 Bond of Designated Agent under the Mississippi Motor Vehicle Title Act. Both are commonly called the “Mississippi motor vehicle dealer bond,” but they are different amounts, forms, and obligees. The bond is a consumer and state protection guarantee, not insurance for the dealer: it pays a buyer or the state if you break a sales contract or violate dealer law, up to the bond amount, and you must repay the surety for anything it pays.
| Item | Detail |
|---|---|
| Who requires it | Mississippi Motor Vehicle Commission (new and franchised dealers); Mississippi Department of Revenue (used and wholesale dealers) |
| Governing law | Miss. Code Ann. 63-17-75, part of the Mississippi Motor Vehicle Commission Law (63-17-51 et seq.), for the MMVC bond; the Mississippi Motor Vehicle Title Act (Title 63, Chapter 21) for the DOR Bond of Designated Agent |
| Official form | Bond of New Motor Vehicle Dealer (MMVC, rev. 03/2021); Bond of Designated Agent for Motor Vehicle Dealers (DOR) |
| Bond amount | $25,000 for a new or franchised dealer (MMVC), with a $100,000 option covering multiple locations of the same capacity; $15,000 for a used or wholesale dealer (DOR) |
| Premium basis | [CLIENT FLAG: insert All n One premium rate/basis] |
| Coverage term | MMVC bond is a term bond with an expiration date, filed and kept current each license period; DOR Bond of Designated Agent stays in force until cancelled, and the surety may cancel only on 30 days written notice to the Department of Revenue |
| Obligee | State of Mississippi. The MMVC bond runs to the State for the benefit of any aggrieved party; the DOR bond names the State of Mississippi as obligee |
How much is the bond, and which amount applies to me?
There is no single Mississippi dealer bond amount. Find your row below to see the amount, the agency you file with, and the authority behind it.
| Dealer type | Bond amount | Files with | Authority |
|---|---|---|---|
| New motor vehicle dealer (single location) | $25,000 | Motor Vehicle Commission | Miss. Code Ann. 63-17-75 |
| Franchise dealer, car and light truck | $25,000 | Motor Vehicle Commission | Miss. Code Ann. 63-17-75 |
| New dealership, other vehicle types (for example new motorcycle, trailer, or recreational vehicle dealers) | $25,000 | Motor Vehicle Commission | Miss. Code Ann. 63-17-75 |
| New or franchised dealer with multiple locations | $100,000 option | Motor Vehicle Commission | Miss. Code Ann. 63-17-75 |
| Used motor vehicle dealer | $15,000 (Bond of Designated Agent) | Department of Revenue | Mississippi Motor Vehicle Title Act, Title 63, Chapter 21 |
| Wholesale-only dealer | $15,000 (Bond of Designated Agent) | Department of Revenue | Mississippi Motor Vehicle Title Act, Title 63, Chapter 21 |
| Dismantler-only, selling no motor vehicles (with signed affidavit) | Bond waived | Department of Revenue | DOR Motor Vehicle Dealer Permit rules |
Two details matter on the amounts:
- The $100,000 is an option, not a higher requirement. A new or franchised dealer that holds licenses at more than one location may file one $100,000 bond covering all licensed locations of the same capacity, in lieu of filing a separate $25,000 bond for each location. If you run a single location, your amount is $25,000.
- Used and wholesale dealers post the same $15,000 bond. On the Department of Revenue side, the used dealer and the wholesale-only dealer both file the identical Bond of Designated Agent in the amount of $15,000. A dealer who applies as dismantler-only and signs the affidavit that they will not sell any motor vehicles or manufactured homes has the bond requirement waived and is issued no dealer tags.
What does the bond cover?
The bond protects the car-buying public and the state, not the dealer. It guarantees that you will honor your sales contracts and follow Mississippi dealer law, and it pays out if you do not.
MMVC Bond of New Motor Vehicle Dealer ($25,000). Under Miss. Code Ann. 63-17-75 and the bond form, the bond is conditioned that the dealer will comply with the conditions of any written contract made in connection with the sale or exchange of any motor vehicle, and will not violate the provisions of the Mississippi Motor Vehicle Commission Law (Sections 63-17-51 et seq.). Key features:
- The bond is an indemnity for any loss sustained by any person by reason of the dealer’s acts 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 for all claimants, regardless of how many years the bond has been in force, cannot exceed the bond amount.
- Proceeds are paid when the Commission receives a final judgment from a Mississippi court against the dealer.
DOR Bond of Designated Agent ($15,000). For used and wholesale dealers, the bond is conditioned that the principal will well and faithfully perform its duties as a Designated Agent under the Mississippi Motor Vehicle Title Act. The State of Mississippi is the obligee. The surety may cancel only on 30 days written notice to the Department of Revenue, and cancellation is effective only as to acts the dealer commits as Designated Agent after that 30-day period ends.
A paid claim on either bond is money the surety fronts on your behalf. You are legally required to repay the surety in full, which is why the bond is a guarantee of your conduct rather than insurance that protects you.
How much does the bond cost?
You do not pay the full bond amount. You pay an annual premium, which is a small percentage of the bond amount and is based mainly on your personal credit and business history. A $25,000 bond and a $15,000 bond are quoted on different bond sizes, so their premiums differ.
[CLIENT FLAG: insert All n One pricing. Provide premium rate ranges by credit tier and one worked example for each amount, for example: “A $25,000 Mississippi new-dealer bond typically costs X% to Y% of the bond amount per year; with good credit it runs about $. A $15,000 used or wholesale dealer Bond of Designated Agent runs about $.” Do not publish a premium figure until All n One supplies it.]
Your rate, not the bond amount, is what varies with your credit. Higher-risk credit means a higher percentage, but Mississippi dealer bonds are widely available across credit levels.
Is this the same as the dealer license, or the designated agent bond?
Three points of confusion come up often in Mississippi:
- The bond is not the license. The surety bond is one requirement you must satisfy to get and keep your dealer license or permit. You still complete the application, pay the fees, and meet the state’s other requirements. On the Department of Revenue side those requirements also include an 8-hour dealer education seminar through the Mississippi Independent Auto Dealers Association (MIADA), motor vehicle liability insurance, and a sales tax number for each location. [VERIFY against MMVC and DOR: current license and permit fees, and confirm the DOR education, insurance, and sales tax requirements at time of publish.]
- The used and wholesale dealer bond IS the designated agent bond. On the Department of Revenue side, the $15,000 bond you file to sell used vehicles or operate wholesale is literally the Bond of Designated Agent. There is not a separate used-car bond and designated agent bond; it is one instrument. If you only need a designated agent bond, see our Mississippi Designated Agent Bond page, which covers the same $15,000 DOR bond in more depth.
- New versus used is decided by the vehicles, not by you. If you hold a franchise to sell new vehicles, you are an MMVC dealer with the $25,000 bond. If you sell only used vehicles or wholesale, you are a DOR dealer with the $15,000 bond. A dealer who does both should confirm which license and bond each activity requires. [VERIFY against MMVC and DOR: how a dealer that sells both new and used vehicles is licensed and bonded.]
How do I get bonded and file with the state?
- Confirm which agency licenses you. New or franchised dealers file with the Mississippi Motor Vehicle Commission. Used and wholesale-only dealers file with the Mississippi Department of Revenue. This decides your bond amount ($25,000 versus $15,000) and your form.
- Request the correct bond. Ask for a $25,000 Mississippi Bond of New Motor Vehicle Dealer if you are an MMVC dealer (or a $100,000 bond if you are covering multiple same-capacity locations under one bond), or a $15,000 Mississippi Bond of Designated Agent if you are a DOR used or wholesale dealer. Approval is typically based on your credit and business background.
- Pay the premium and receive the executed bond. The surety issues the bond on the correct official form, signed and sealed, with a Power of Attorney attached. The business name must appear exactly as it is registered, including any d/b/a.
- File the bond with your application. MMVC dealers mail the bond with the dealer application to the Mississippi Motor Vehicle Commission, 1755 Lelia Drive, Suite 200, Jackson, MS 39216. DOR dealers submit the original signed Bond of Designated Agent with the dealer permit application to the Department of Revenue, Motor Vehicle Licensing Bureau, P.O. Box 1140, Jackson, MS 39215, or apply online through Motor Vehicle e-Services.
- Keep the bond current. The MMVC bond carries an expiration date and must be kept in force for each license period. The DOR Bond of Designated Agent stays in force until cancelled and can be cancelled by the surety only on 30 days written notice to the Department of Revenue. Renew on time so your license or permit does not lapse. [VERIFY against MMVC: the MMVC license year dates and bond renewal cycle.]
Frequently asked questions
How much is a Mississippi motor vehicle dealer bond?
It depends on your dealer type. New and franchised dealers licensed by the Mississippi Motor Vehicle Commission file a $25,000 bond under Miss. Code Ann. 63-17-75. Used and wholesale dealers licensed by the Department of Revenue file a $15,000 Bond of Designated Agent. You pay only a yearly premium, not the full amount.
Why are there two different amounts and two different agencies?
Mississippi regulates new and franchised dealers through the Motor Vehicle Commission and regulates used and wholesale dealers through the Department of Revenue. Each agency has its own bond form and amount: $25,000 on the MMVC side and $15,000 on the DOR side.
What is the $100,000 bond option?
A new or franchised dealer that holds licenses at more than one location may file a single $100,000 bond covering all licensed locations of the same capacity, instead of a separate $25,000 bond for each location. A single-location dealer files the standard $25,000 bond.
Who do I file the bond with?
MMVC dealers file with the Mississippi Motor Vehicle Commission in Jackson. DOR dealers file the Bond of Designated Agent with the Department of Revenue’s Motor Vehicle Licensing Bureau, in person, by mail, or through Motor Vehicle e-Services.
What does the bond actually pay for?
It reimburses a buyer or the state for losses caused when a dealer breaks a sales contract or violates dealer law. On the MMVC bond, proceeds are paid after the Commission receives a final judgment from a Mississippi court, and the surety never pays more than the bond amount in total. On the DOR bond, it guarantees faithful performance of the dealer’s duties as a designated agent.
If the surety pays a claim, do I owe that money back?
Yes. A surety bond is not insurance for you. If the surety pays a valid claim, you must repay the surety in full, plus costs. The bond protects the public and the state; you remain responsible for your own conduct.
How long does the bond last, and how do I keep it active?
The MMVC Bond of New Motor Vehicle Dealer is a term bond with an expiration date and must be kept in force for each license period. The DOR Bond of Designated Agent stays in force until cancelled, and the surety can cancel only by giving the Department of Revenue 30 days written notice. Renew on time so your license or permit does not lapse. [VERIFY against MMVC: exact license year dates and renewal window.]
Can bad credit stop me from getting bonded?
Not usually. Premiums are priced partly on credit, so weaker credit means a higher rate, but $25,000 and $15,000 dealer bonds are widely available across credit levels. Ask for a quote to see your exact cost.
