Auto dealer bond cost
The Maine Secretary of State requires motor vehicle dealers to post surety bonds to legally work within the state. The required amount of the bond varies depending on the number of vehicles sold in the previous year. For new dealers, the required bond amount is $5,000.
These bonds are subject to underwriting, which means the price you’ll pay for your bond depends not only on your required amount of bond coverage, but also on a review of your personal credit report. Don’t worry if you have poor credit! We offers an exclusive bad credit bonding program through which we approve 99% of applicants for the bonds they need quickly, easily and accurately.
Why this bond
Motor vehicle dealer bonds in Maine ensure that principals (auto dealers) conduct business according to the provisions of Title 29A M.R.S.A and all applicable amendments. If the auto dealer fails to conduct business ethically and lawfully, a claim can be filed against the bond. If the claim is validated, the bond protects the state and consumers from financial loss up to the full bond amount. The dealer must then reimburse the surety for damages paid out.
Maine MVD bonds run concurrently with the period of the auto dealer’s license. The bond can be continued by the issuance of a continuation certificate signed by the surety.
The surety can cancel the bond at any time by giving 30 days’ written notice of cancellation via registered or certified mail to the Secretary of State, Bureau of Motor Vehicles. Cancellation becomes effective 30 days from the receipt of the notice.
Become a motor vehicle dealer
To become a licensed auto dealer in Maine, applicants must submit a packet containing the following materials to the division to apply for licensure:
- completed application and fees (stated on application)
- completed and notarized questionnaire
- notarized zoning form
- partnership agreement
- lease agreement
- plot plan
- sales tax number
- Federal ID number or Social Security number
- background check
- and more
Apply for your surety bond
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- Maine Department of the Secretary of State Bureau of Motor Vehicles Dealer License Requirements
- Maine Department of the Secretary of State Bureau of Motor Vehicle Dealer Information
- Maine Department of the Secretary of State Bureau of Motor Vehicle Dealer Forms
- Maine Revised Statutes Title 29-A, Chapter 9: Dealers