If you are a Used Motor Vehicle Dealer or Second Hand Vehicle Dealer in the Commonwealth of Massachusetts, you need a Motor Vehicle Dealer Surety Bond in the amount of $25,000. Dealer applicants will need to apply for licensure through their local municipal government (such as Boston Police Department, the Town of Sandwich Clerks Office, or the City of Lynn Clerks Office) in Massachusetts.
Class 2 second hand or used dealer license requirements include the following:
Completion of the municipality license application and payment of the license fee. Municipalities may limit the number of Class 2 licenses issued.
A $25,000 surety bond can be obtained from SuretyGroup.com. A seperate bond is required for each name (dba or trade name) that will be used for the business and for each town or city the dealerships will be located within. In lieu of a bond a financial security of equal value may be filed with the municipality of the dealership location. A bond or financial security must be in place prior to a license being issued.
Applicants will need to be able to pass a criminal background check, have Workmans Compensation Insurance, liability insurance, and may require a plot plan, flammable permit for the business facility and compliance with other municipal ordinances.
Dealers must have a business location that is seperate from any personal living space and can only be accessed by an outside entrance. Business hours must be posted. Business locations may be inspected and must meet local zoning ordinances.
The premium that you pay for a Massachusetts Used Vehicle Dealer Bond is dependent on credit, the number of bonds needed and experience in vehicle sales.
We have been underwriting surety bonds for over 35 years, and we offer bonds for individuals and businesses of every size.
Our team of experienced surety specialists and in-house underwriting authority gives us a unique advantage over other surety companies. We are able to offer competitive, low rates, quick approvals and immediate bond delivery. In most cases we can approve your application today and deliver your bond tomorrow.
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