Missouri Auction License

Before conducting any kind of auction in Missouri, you should make sure that you’re compliant with the state’s license laws.

Missouri Auction License Requirements

Missouri Law (§343.010 RSMo) states that no person shall conduct an auction without a valid certificate. The Department of Revenue in MO sets all the requirements.

First of all, you need to consider that there are several types of licenses in MO and a separate permission is required for each of the following categories:

• Franchise Motor Vehicle (MV) – new automobiles under a franchise agreement
• Public Motor Vehicle Trades
• Automobiles, trailers, and boat manufacturers;
• Trailer Retailer
• Wholesale Motor Vehicle Trades
• Boat Retailer

After deciding on the type of license you want, the next step will be attending the state-mandated Missouri Dealer Educational Seminar. The training class will last about 4 hours. It’s just an informal question and answer session but you have to sit through the entire 4-hour training to get the certificate of completion.

Application

Now it’s time to fill in the application. You should include the business location name and address. Note that a post office box number is not acceptable as a business location address.

Each applicant must list the driver’s license number, birth date, home address, and/or Social Security number on the form.

Surety Bond or Irrevocable Letter

You are also expected to provide either a corporate surety bond (required in section 301.560.1, RSMo- put the link) in the amount of $50,000 or an irrevocable letter of credit in the same amount. Both shall be maintained for the entire licensure period. The price for your surety bond mainly depends on your credit score.

Irrevocable letters of credit are issued by banks and the prices vary. The Missouri Department of Revenue requires either a bond or a letter of credit.

Photo and Criminal Record

Another mandatory condition is to represent a photograph of the place of business. It may be either a black and white or a color photograph. If more than one photograph is necessary to show the building, lot, and sign, a statement, signed by the applicant, must accompany the photograph explaining that all photographs were taken at the same address.

Applicant must complete and submit criminality information to the MO State Highway Patrol’s General Headquarters along with the appropriate fee of $13.

Fees

Once you have collected all necessary documents and completed the request, you can submit the form and additional paperwork online, or by sending it via mail to:

Motor Vehicle Bureau
Dealer Licensing Section
Post Office Box 43
Jefferson City, Missouri 65105-0043

The licensing fees that you have to cover are:

• $150 annual  payment (all types but boat wholesalers)
• $80 annual payment for boat wholesalers
• $50 dealer plate charge (first one)
• $10.50 for each additional dealer plate

Renewal

The licensing period for auctions runs from January 1st to December 31st. So, you have to renew your permit every year. Renewal applications must be mailed at least ninety days before expiration. Otherwise, if it’s less than sixty days you will have to pay a fine in the amount of $25. If you send it after December 31st, the late bill is $50.

What are the benefits of having a license in MO?

The truth is that the benefits of obtaining a US car auction license are huge and here are some of them;

• As a trader, you have no limit on the number of cars you can sell per year.
• You’ll have the opportunity to engage in private wholesale dealer auctions which are usually closed for individuals with no permit
• You can get a tax credit
• You’ll be able to import and export automobiles
• You can purchase vehicles from auto insurance deals. You also have the power to both purchase and sell salvage.