Maine Vehicle Dealer Surety Bond
If you are a Motor Vehicle Dealer in Maine, you need a Motor Vehicle Dealer Bond and a license to operate a dealership. Dealers that are required to be licensed include new car dealers, used car dealers (also known as an auto dealer), vehicle auction dealers, heavy trailer dealers (over 3,000 lbs), and motorcycle dealers.
- Dealers can obtain a license from the Maine Department of Secretary of State, Bureau of Motor Vehicles (also known as the BMV).
- Complete the dealer application package and pay the license and license plate fees.
- Complete the questionnaire and have it notarized.
- Provide a completed Zoning form that has been approved by local authorities where the business will be located within and complete the Plot Plan.
- Provide a copy of the lease or rental agreement for the property that includes the lot, office, repair facility and building size and must be signed and notarized. Dealer locations will be inspected prior to a license being issued.
- If the business will be a partnership, corporation, or limited liability company, provide formation documentation and meeting minutes. (Instead of meeting minutes a sworn affidavit by all owners will be accepted.)
- Obtain a sales tax number from the Maine Department of Revenue Services. Provide a social security number or tax identification number.
- Owners, officers, directors, etc. of the business must be able to pass a criminal background check.
- Provide proof of liability coverage. (Light trailer or equipment dealers not using dealer plates can waive liability coverage.)
Surety Bond Requirements:
Obtain a MVD-390 surety bond based on the number of sales per year:1-50 Vehicles Sold = $5,000 Surety Bond (effective September 15, 2017 the bond amount increases to $25,000)51-100 Vehicles Sold = $10,000 Surety Bond (effective September 15, 2017 the bond amount increases to $50,000)101–150 Vehicles Sold = $15,000 Surety Bond (effective September 15, 2017 the bond amount increases to $75,000)151– and Over Vehicles Sold = $20,000 Surety Bond (effective September 15, 2017 the bond amount increases to $100,000)Over 200 Vehicles Sold = $25,000 Surety Bond (effective September 15, 2017 over 200 vehicles sold amount is combined with 151 vehicles sold or more)
How Much Will This Bond Cost?
The premium you pay for a Maine Vehicle Dealer Surety Bond is dependent on credit, the bond amount required and experience in the vehicle sales industry.
Related Links:Maine Motor Vehicle Dealer License InformationMaine Vehicle Dealer Laws
More Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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