Dealer Surety Bond in Kentucky: $10,000–$100,000 Requirement
Kentucky requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Kentucky
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Kentucky
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Kentucky-Specific Note
Kentucky-Specific Facts for Dealer Surety Bond
Kentucky Vehicle transfer fees and requirements
In Kentucky, the title transfer fee is $9 and registration costs $21 per year. Vehicle sales are subject to 6% motor vehicle usage tax. Notarization is required for vehicle bill of sale documents in Kentucky. Emission testing is required in Kentucky — verify the vehicle passes before completing the sale.
- Notarization required on the title for transfer
- Emissions testing required in select Northern Kentucky and Jefferson County
- Title transfer within 15 days of sale
Official Kentucky bill of sale form
The official Kentucky bill of sale form is TC 96-182 (Bill of Sale). BillOfSaleNow generates a document that meets all Kentucky requirements and can be used in place of the official form.
Kentucky sales tax on vehicle purchases
Kentucky has a 6% state sales tax rate. Flat 6% motor vehicle usage tax statewide. Private-party vehicle sales in Kentucky are subject to sales tax. Motor vehicle usage tax applies to all sales. The title transfer fee is $9.
Kentucky bill of sale statistics
BillOfSaleNow has generated 1,071 bill of sale documents for Kentucky transactions, with 29 generated this month alone. The most popular vehicle type is car.
More Kentucky Vehicle Guides
- Service Contract vs Warranty in Kentucky
- Vehicle Shipping Tax in Kentucky
- Window Sticker (Monroney) in Kentucky
- Abandoned Vehicle Title in Kentucky
- Auto Auction Buyer Guide in Kentucky
- Buy Here Pay Here in Kentucky
Each guide is written specifically for Kentucky laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Kentucky?
Kentucky requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Kentucky?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Kentucky?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Kentucky dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Kentucky?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.