State of Kansas - Vehicle Dealer Bond
Required for used vehicle dealers in Kansas to obtain and maintain their dealer license. Protects consumers from fraudulent practices and ensures compliance with state regulations.
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About This Bond
The State of Kansas Vehicle Dealer Bond is a surety bond required for used vehicle dealers operating in Kansas to obtain and maintain their dealer license. This bond serves as a financial guarantee that the dealer will conduct business in accordance with Kansas state laws and regulations governing motor vehicle sales.
Used vehicle dealers in Kansas must obtain this bond as part of their licensing requirements. The bond amount is $50,000 effective January 1, 2022 (previously $30,000). New and franchised dealers may be considered under different underwriting criteria than used dealers, with used dealers typically requiring more extensive documentation including financial statements.
This bond protects the State of Kansas and consumers who purchase vehicles from licensed dealers. If a dealer engages in fraudulent practices, fails to transfer titles properly, or violates other state regulations, affected parties can file claims against the bond for financial compensation up to the bond amount. The bond ensures that consumers have recourse if they suffer financial losses due to the dealer's misconduct.
The bond term is one year and is renewable annually. Dealers operating multiple locations under the same license and dealer number can add supplemental locations through endorsements to their existing bond rather than purchasing separate bonds for each location.
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At a glance
Kansas Auto Dealer Bond Key Facts
Governed by K.S.A. 8-2404.
The basics
What Is an Auto Dealer Bond in Kansas?
A Kansas auto dealer bond is a surety bond you must file with the Kansas Department of Revenue, Division of Vehicles, to get or renew a motor vehicle dealer license. The amount depends on your license type: new and used vehicle dealers post a $50,000 bond, and salvage vehicle dealers post a $30,000 bond. Kansas requires the new and used dealer bond under Kansas Statutes Annotated section 8-2404.
Good to know - Required for every Kansas new or used motor vehicle dealer license; the amount is set by license type. New and used vehicle dealers (which include wholesale dealers) post a $50,000 bond under K.S.A. 8-2404 on Form D-30. Salvage vehicle dealers post a $30,000 bond on Form D-20.
The bond is a promise that you will follow Kansas motor vehicle laws — for example, paying the taxes and fees you owe and delivering a clear vehicle title when you sell a car. The bond is executed in the name of the State of Kansas, which is the obligee, the party it protects.
If you break those rules and cause a financial loss, a retail or wholesale buyer or seller of a vehicle can file a claim against your bond, up to its full amount. The bond protects the public, not you: if the surety company pays a claim, you must pay the surety back.
Kansas dealer bonds must stay on file the whole time you are licensed. The surety company can cancel the bond only after giving the director 30 days’ written notice, so you keep it renewed to keep your license active.
Qualification
What You Need to Qualify for a Kansas Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for, or renewing, a Kansas motor vehicle dealer license with the Department of Revenue, Division of Vehicles, Dealer Licensing Bureau.
- You know your license type — new, used, or wholesale vehicle dealer — because it sets your bond amount ($50,000 for new and used dealers; salvage vehicle dealers post $30,000).
- Your bond is a corporate surety bond written by a company authorized to do business in Kansas, executed in the name of the State of Kansas.
- You keep the bond continuous — it stays on file with no lapse; the surety can cancel only after giving the director 30 days’ written notice.
- You have an established place of business in Kansas with proper zoning, a sign in the business name, and an operable telephone.
- You can pass a Kansas tax clearance check, verify you owe no personal property tax through your county treasurer, and provide three credit references and proof of insurance on your location and inventory.
Step by step
How to Get an Auto Dealer Bond in Kansas: Step by Step
Choose your Kansas dealer license type
Decide which license you need — new, used, or wholesale vehicle dealer, or salvage vehicle dealer. Your license type sets your bond amount: $50,000 for new and used dealers under K.S.A. 8-2404, and $30,000 for salvage vehicle dealers.
Complete your Original Application for Vehicle Dealer License
Download and fill out the Original Application for Vehicle Dealer License (D-17A). Gather the items it lists, such as a Kansas tax clearance, proof of proper zoning, a sign in the business name, three credit references, and proof of insurance on your location and inventory.
Original Application for Vehicle Dealer License (D-17A)Get your Kansas Vehicle Dealer Bond
Buy your bond for the amount your license type requires and we handle the form. We issue your Kansas Vehicle Dealer Bond on the official form — D-30 for the $50,000 new and used dealer bond, or D-20 for the $30,000 salvage bond — and, in most cases, file it with the Dealer Licensing Bureau for you. There is no bond form for you to download or sign.
File your application, bond, and fees
Submit your completed Original Application for Vehicle Dealer License, your issued bond, and your supporting documents to the Dealer Licensing Bureau, and pay the state fees. You can file through the Kansas dealer licensing web portal.
Keep your bond active
Renew your bond before it expires so your coverage never lapses — your dealer license cannot stay active without the bond on file. The surety company can cancel the bond only after giving the director 30 days’ written notice.
Paperwork
Kansas Dealer Bond Forms & Documents
The official $50,000 dealer bond form for new and used dealers — we issue this for you and, in most cases, file it with the Dealer Licensing Bureau. You do not download or complete it.
View formThe official $30,000 dealer bond form for salvage vehicle dealers — we issue this for you and, in most cases, file it for you. You do not download or complete it.
View formThe dealer license application you complete and submit to the Dealer Licensing Bureau.
View formYou'll also need
Cost
How Kansas Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Kansas sets the bond by license type — $50,000 for new and used vehicle dealers, and $30,000 for salvage vehicle dealers. That figure is the coverage, the most a claim can collect.
You pay a premium, which is a small percentage of your bond amount. Underwriting sets your rate, mostly from your personal credit. The premium is separate from the state’s license and plate fees.
Worked example
If you open a used car lot, your bond is $50,000. You do not pay $50,000 — you pay a premium on it, often a few hundred dollars a year for well-qualified applicants. A salvage vehicle dealer’s bond is $30,000, so the premium is lower.
Filing
Filing Information
Kansas Department of Revenue, Division of Vehicles — Dealer Licensing Bureau
Filing notes
Kansas requires the dealer bond to be a corporate surety bond executed in the name of the State of Kansas. We issue your bond on the official Vehicle Dealer Bond form — D-30 for the $50,000 new and used dealer bond, or D-20 for the $30,000 salvage dealer bond — so there is no bond form for you to complete.
Your bond must stay on file without a lapse the whole time you are licensed. The surety can cancel the bond only by giving the director 30 days’ written notice, so renew it on time to keep your license active.
File the bond with your Original Application for Vehicle Dealer License (D-17A) and fees. In most cases we file the issued bond with the Dealer Licensing Bureau for you.
FAQ
Kansas Auto Dealer Bond FAQ
Yes. Every new or used motor vehicle dealer must furnish and maintain a surety bond, filed with the Kansas Department of Revenue, Division of Vehicles, under K.S.A. 8-2404. The amount depends on your license type.
It is $50,000 for new and used vehicle dealers (which include wholesale dealers) under K.S.A. 8-2404, and $30,000 for salvage vehicle dealers.
It depends on your license type. If you sell vehicles to the public as a new or used dealer, you need the $50,000 bond. Salvage vehicle dealers need the $30,000 bond.
The bond must stay on file the whole time you are licensed. The surety company can cancel it only after giving the director 30 days’ written notice, so you renew it to keep your license active.
We issue your bond on the official Vehicle Dealer Bond form — D-30 for the $50,000 new and used dealer bond, or D-20 for the $30,000 salvage bond — executed in the name of the State of Kansas, and in most cases we file it with the Dealer Licensing Bureau for you. There is no bond form for you to complete.
You pay a premium, not the full bond amount. The premium is a small percentage of your bond amount, based mainly on your credit. Start a quote to see your rate.
The Kansas Department of Revenue, Division of Vehicles, Dealer Licensing Bureau. You can reach it at 785-296-3621 (option 6) or kdor_dealers.licensing@ks.gov.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with Kansas Department of Revenue, Division of Vehicles — Dealer Licensing Bureau before you file. This page is informational and not legal advice.
FAQ
Kansas Auto Dealer Bond Questions
The cost of a Kansas auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Kansas auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Kansas license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
