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Is There a Bond Requirement for a Maryland Vehicle Dealer's License?

A happy customer smiles while testing a car at a Maryland motor vehicle dealer

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 Marlyand Department of Transportation, Motor Vehicle Administration.

License application requirements are as follows:

Complete the application 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).

Obtain a surety bond from SuretyGroup.com. The surety bond amount is based on the number of vehicles sold or projected to be sold:

New Vehicle Dealer Bond, New Motorcycle Dealer Bond or New Emergency Vehicle Dealer Bond

  • 1-500 vehicles sold = $50,000
  • 501-1,000 vehicles sold = $75,000
  • 1,001 – 2,500 vehicles sold = $100,000
  • Over 2,500 vehicles sold = $300,000
  • Used Vehicle Dealer Bond (also known as Car Dealer Bond or Auto Dealer Bond), Wholesale Dealer Bond, Used Motorcycle Dealer Bond, Used Emergency Vehicle Dealer Bond or Trailer Dealer Bond (trailers over 15' in length)

  • 1-250 = $15,000
  • 251-500 = $25,000
  • 501-1,000 = $35,000
  • 1,001 – 2,500 = $50,000
  • Over 2,500 = $150,000
  • Other Dealer Bond Requirements

    Boat Trailer Dealer Bond = $5,000

    Trailer Dealer Bond (Under 15 feet in length) = $5,000

    Manufacturer Bond or Second Stage Manufacturer Bond, Distributor Bond, or Factory Branch License Bond

  • 1-50 = $25,000
  • 51-500 = $50,000
  • 501-10,000 = $100,000
  • Over 10,000 = $300,000
  • How Much Will This Bond Cost?

    The premium that you pay for a Maryland Vehicle Dealer Bond is dependent on credit, the bond amount required and length of experience in vehicle sales. Bond amounts over $50,000 will require business and/or personal financial statements.

    Have Questions?

    Contact our Surety Bond Specialists at:

    Phone: 1‑844‑432‑6637
    Fax:     404-351-3237
    Hours: 8:00-5:00 CST, Monday through Friday

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