Motor Vehicle Dealer
Motor vehicle dealers in Brooklyn Center, Minnesota must obtain this $5,000 bond to comply with local licensing requirements for selling new or used vehicles.
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About This Bond
The Motor Vehicle Dealer bond is a surety bond required by the City of Brooklyn Center, Minnesota for businesses engaged in the sale of new or new and used motor vehicles. This bond ensures that dealers operate in compliance with local regulations and consumer protection laws.
Motor vehicle dealerships operating within Brooklyn Center city limits must obtain this bond as part of their licensing requirements. The bond specifically applies to dealers selling new vehicles or a combination of new and used vehicles, ensuring they meet the city's standards for automotive retail operations.
The bond protects the City of Brooklyn Center and consumers from financial losses that may result from the dealer's failure to comply with applicable laws, regulations, or contractual obligations. This includes protection against fraudulent practices, failure to transfer titles properly, or other violations of motor vehicle dealer regulations.
The bond amount is set at $5,000 and has a term length of one year. The bond is renewable annually to maintain continuous compliance with city licensing requirements. This bond is eligible for instant approval, allowing qualified dealers to obtain coverage quickly and efficiently.
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At a glance
Minnesota Auto Dealer Bond Key Facts
Governed by Minn. Stat. § 168.27, subd. 24.
The basics
What Is an Auto Dealer Bond in Minnesota?
Yes — Minnesota requires an auto dealer bond. To get or keep a Minnesota motor vehicle dealer license, you must file a surety bond with Driver and Vehicle Services (DVS) and keep it in full force the whole time you are licensed (Minn. Stat. § 168.27, subd. 24). The amount is $50,000 for most dealers. It is $5,000 for certain small-trailer and motorized bicycle dealers. No dealer license type is exempt.
Good to know - Required for every Minnesota motor vehicle dealer license under Minn. Stat. § 168.27, subd. 24. The amount is $50,000 for most dealers (used, new, wholesaler, broker, auction, lessor, and similar). It is $5,000 for boat-trailer, snowmobile-trailer, horse-trailer, and motorized bicycle dealers, and dealers in small trailers rated under 15,000 pounds built to carry small construction or farm equipment. No dealer license type is exempt from the bond.
A surety bond is a promise, backed by a surety company, that you will follow Minnesota’s motor vehicle dealer laws. If you break them and someone is harmed — a buyer, another dealer, or the state — they can file a claim against your bond up to its full amount.
The bond protects the public and the state, not you. Minnesota law says it covers your faithful performance as a dealer and the payment of all taxes, license fees, and penalties. If a claim is paid, you must repay the surety company.
DVS must approve your surety, and you must keep the bond active for as long as you hold your license. If the surety cancels it, the surety notifies DVS, and a lapse can lead DVS to cancel your dealer license.
Qualification
What You Need to Qualify for a Minnesota 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 Minnesota motor vehicle dealer license (for example, a used, new, wholesaler, broker, auction, or lessor license) with Driver and Vehicle Services (DVS).
- You will post a surety bond in the amount Minnesota sets for your license type — $50,000 for most dealers, or $5,000 for certain small-trailer and motorized bicycle dealers.
- Your bond is written by a corporate surety approved to do business in Minnesota, since DVS must approve the surety.
- You have an established place of business that meets Minnesota’s dealer rules (a permanent office or lot, not just a home or a P.O. box).
- You have the business records DVS asks for — such as proof of ownership or lease of your location, your Minnesota tax ID, and your dealer education if your license type requires it.
- You can keep your bond in full force and effect the whole time you hold your license and renew on time, because a lapse can lead DVS to cancel your license.
Step by step
How to Get an Auto Dealer Bond in Minnesota: Step by Step
Choose your dealer license type
Decide which Minnesota dealer license fits your business — used, new, wholesaler, broker, auctioneer, lessor, or one of the trailer and motorized bicycle types. Your license type sets your bond amount: $50,000 for most dealers, or $5,000 for certain small-trailer and motorized bicycle dealers.
Set up your place of business
Minnesota dealers need an established place of business that meets state rules — a permanent office or lot, not just a home or a P.O. box. Gather proof you own or lease the location, along with your business and tax records.
Buy your Minnesota dealer bond
Buy your bond and we handle the paperwork. We issue your surety bond on the official Minnesota Motor Vehicle Dealer License Surety Bond form in the amount for your license type — $50,000, or $5,000 for certain small-trailer and motorized bicycle dealers — and file it with DVS for you. There is no bond form for you to download, complete, or sign.
Complete your Motor Vehicle Dealer License Application
Fill out the Motor Vehicle Dealer License Application from DVS and gather the supporting documents it lists for your license type, such as proof of your location, your tax ID, and any required dealer education.
Motor Vehicle Dealer License ApplicationFile your application, bond, and fees with DVS
Submit your completed application and supporting documents to the DVS Dealer Unit and pay the state fees — a $100 initial application fee, the $150 annual license fee, and any dealer plate fees. We file your surety bond with DVS, and DVS reviews everything before issuing your license.
Renew each year and keep your bond current
Renew your Minnesota dealer license on time and keep your surety bond in full force and effect. Minnesota law requires continuous coverage, so do not let the bond lapse between renewals.
Paperwork
Minnesota Dealer Bond Forms & Documents
The main application to become a licensed Minnesota motor vehicle dealer — you complete and submit this to the DVS Dealer Unit.
View formThe official Minnesota dealer bond form — we issue and file this for you; you do not fill it out yourself.
View formDVS guide to license types, place-of-business rules, and the documents each dealer license needs.
View formYou'll also need
Cost
How Minnesota Auto Dealer Bond Pricing Works
You do not pay the full bond amount. That figure — $50,000 for most dealers, or $5,000 for certain small-trailer and motorized bicycle dealers — is the coverage, the most a claim can collect. You pay a premium, which is a small percentage of the bond amount.
Your premium is set by underwriting, mostly your personal credit. Well-qualified applicants pay a low rate; higher-risk applicants pay more. The premium is separate from Minnesota’s application, license, and dealer plate fees, which you pay to DVS.
Worked example
Most Minnesota dealers need a $50,000 bond. You do not pay $50,000 — you pay a premium, often a small percentage of the bond amount for well-qualified applicants. If your license type needs only a $5,000 bond, your premium is lower still. Your exact rate depends on underwriting, mainly your credit. Start a quote to see your price.
Filing
Filing Information
Minnesota Department of Public Safety — Driver and Vehicle Services (DVS), Dealer Unit
Filing notes
Your surety bond must be on file and approved by DVS before it will issue your dealer license — a bond is required for every license type under Minn. Stat. § 168.27, subd. 24.
Minnesota law requires you to keep the bond in full force and effect the whole time you are licensed. If the surety cancels the bond, it must notify DVS, and a lapse in coverage can lead DVS to cancel your dealer license — so renew on time and keep coverage continuous.
We issue your bond on the official Minnesota Motor Vehicle Dealer License Surety Bond form and file it with DVS for you — there is no bond form for you to complete or sign. You file your own dealer license application and supporting documents with the DVS Dealer Unit.
FAQ
Minnesota Auto Dealer Bond FAQ
Yes. Every motor vehicle dealer licensed under Minn. Stat. § 168.27 must keep a surety bond in full force and effect (subd. 24). No dealer license type is exempt.
It is $50,000 for most dealers. It is $5,000 for boat-trailer, snowmobile-trailer, horse-trailer, and motorized bicycle dealers, and for dealers in small trailers rated under 15,000 pounds built to carry small construction or farm equipment.
The Motor Vehicle Dealer License Surety Bond form from DVS. We issue this bond for you and file it with DVS — there is no bond form for you to complete or sign.
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.
Yes. Your surety bond must be on file and approved by DVS before it will issue your motor vehicle dealer license.
Minnesota law requires you to keep the bond in full force and effect. If the surety cancels it, the surety must notify DVS, and a lapse in coverage can lead DVS to cancel your dealer license. Keep coverage continuous and renew on time.
It covers your faithful performance of the duties Minnesota law places on motor vehicle dealers, including the payment of all taxes, license fees, and penalties. It protects buyers, other dealers, and the state — not you.
The Minnesota Department of Public Safety, Driver and Vehicle Services (DVS), Dealer Unit. You can reach them at 651-201-7800 or DVS.Dealerquestion@state.mn.us.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with Minnesota Department of Public Safety — Driver and Vehicle Services (DVS), Dealer Unit before you file. This page is informational and not legal advice.
FAQ
Minnesota Auto Dealer Bond Questions
The cost of a Minnesota 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 Minnesota 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 Minnesota 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.
