Maryland Vehicle Dealer Surety Bonds
If you are a Vehicle Dealer in Maryland, you will need a Dealer or Trailer Surety Bond and license to operate a dealership. Dealers can apply for a license through the Maryland Department of Transportation, Motor Vehicle Administration.
Surety Bond Requirements:
The surety bond amount is based on the number of vehicles sold or projected to be sold. The surety bond form can be found in the dealer application packet. Surety Bond amounts are as follows: New Vehicle Dealer Surety Bond, New Motorcycle Dealer Surety Bond or New Emergency Vehicle Dealer Surety Bond 1-500 vehicles sold = $50,000501-1,000 vehicles sold = $75,0001,001 – 2,500 vehicles sold = $100,000Over 2,500 vehicles sold = $300,000
Used Vehicle Dealer Surety Bond (also known as Car Dealer Surety Bond or Auto Dealer Surety Bond), Wholesale Dealer Surety Bond, Used Motorcycle Dealer Surety Bond, Used Emergency Vehicle Dealer Surety Bond or Trailer Dealer Surety Bond (trailers over 15' in length) 1-250 vehicles sold = $15,000251-500 vehicles sold = $25,000501-1,000 vehicles sold = $35,0001,001 – 2,500 vehicles sold = $50,000Over 2,500 vehicles sold = $150,000
Manufacturer Bond or Second Stage Manufacturer Bond, Distributor Bond, or Factory Branch License Bond 1-50 vehicles sold = $25,00051-500 vehicles sold = $50,000501-10,000 vehicles sold = $100,000Over 10,000 vehicles sold = $300,000
Other Dealer Surety Bond Requirements
Boat Trailer Dealer = $5,000 Surety Bond
Trailer Dealer (Under 15 feet in length) = $5,000 Surety Bond
- Complete the vehicle dealer application packet and pay the license fees. Applicants must be able to pass a criminal background check.
- Applicants must obtain zoning approval from local authorities.
- Provide proof of Workers Compensation Coverage (unless exempt).
- Obtain a Trader's License from the circuit court in the county where the dealership will be located.
- Obtain a Business Registration Letter from the MD State Department of Assessment and Taxation.
- Provide a repair facility contract for repair work on vehicles sold. The repair facility must be within five miles of the dealership.
- If a franchise dealer, provide a copy of the franchise agreement. Also, complete the New Vehicle Certification Form.
- Obtain liability insurance for vehicles that will be sold.
- If applicable provide the following: Letter of Good Standing, Use and Occupancy Permit, and Dealer Orientation Request (for dealer training).
How Much Will This Bond Cost?
The premium that you pay for a Maryland Vehicle Dealer Surety Bond is dependent on credit, the bond amount required and length of experience in vehicle sales. Surety bond amounts over $50,000 will require business and/or personal financial statements.
Related Links:Maryland Motor Vehicle Dealer License Information
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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