Maine Bureau of Motor Vehicles Auto Dealer Bond
Effective November 1, 2017, the Maine Bureau of Motor Vehicles has changed the bond amounts required for Motor Vehicle Dealer bonds: Motor Vehicle Dealer Bonds are required for all dealers except light trailer and light boat trailer dealers. Bond amount is established by the number of vehicles sold by the dealership:
Annual sales 0 to 50 vehicles will now require a $25,000 bond.
Annual sales 51 to 100 vehicles will now require a $50,000 bond.
Annual sales 101 to 150 vehicles will now require a $75,000 bond.
Annual sales 151 to 200 vehicles will now require a $100,000 bond.
Annual sales 201 vehicles and over will now require a $100,000 maximum bond.
Apply for a Dealer License?
A person who is “engaged in the business of buying, selling, exchanging, offering to negotiate, negotiating or advertising the sale of vehicles” if that person:
- Buys vehicles for the purpose of resale;
- Sells more than 5 vehicles in any 12 month period; or
- Advertises, in any form, 3 or more vehicles for sale or displays 3 or more vehicle for sale within a 30 day period on premises controlled by that person.
Vehicles owned and registered by that person for at least 6 months are not included for purposes of this definition.
A person that is “engaged in the business of buying, selling, exchanging, offering to negotiate, negotiating or advertising the sale of vehicles” must apply for a Dealer license by filing with the Secretary of State an application prescribed by the Secretary of State and by paying the necessary fee. The application must contain the applicant’s name, type of business organization and place of business. Also included are the qualifications and business history of the applicant (partners and/or officer/directors) and any criminal offenses within the past five years against Prior to licensing, a dealer must have garage liability insurance and a surety bond guaranteeing the title and mileage on any vehicle sold by the business.
Grounds for denying a dealer license are material misstatement on the application for license, failure to comply with the requirements to obtain/maintain the license, failure to have an established place of business, not notifying the state 30 days prior to moving locations, not maintaining a surety bond.
A Motor Vehicle Dealer will need to increase the amount of their current bonds. Please complete one of our simple applications or if you have any questions please feel free to call (888) 490-BOND (2663) or send us and email at email@example.com
Main Office of the Bureau of Motor Vehicles
The Main Office is open 8:00 am to 5:00 pm, Monday through Friday and closed
on all major holidays