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How much does an auto dealer bond cost in Maine?
The Maine Secretary of State requires motor vehicle dealers to post surety bonds to legally work within the state. The required amount of the bond varies depending on the number of vehicles sold in the previous year.
These bonds are subject to underwriting, meaning the price dealers will pay is based on both the amount of their bond and the dealer’s qualifications. Underwriters may quote highly qualified dealers for less than 1% of the total bond amount.
Why do I need this bond?
Motor vehicle dealer bonds in Maine ensure that principals (auto dealers) conduct business according to the provisions of Title 29A M.R.S.A and all applicable amendments. If the auto dealer fails to conduct business ethically and lawfully, a claim can be filed against the bond. If the claim is validated, the bond protects the state and consumers from financial loss up to the full bond amount. The dealer must then reimburse the surety for damages paid out.
Need more information on surety bonds to title a vehicle in Maine? Visit our Maine motor vehicle title page for more information regarding cost and why these bonds are required.
What’s the fine print?
Maine MVD bonds run concurrently with the period of the auto dealer’s license. The bond can be continued by the issuance of a continuation certificate signed by the surety.
The surety can cancel the bond at any time by giving 30 days’ written notice of cancellation via registered or certified mail to the Secretary of State, Bureau of Motor Vehicles. Cancellation becomes effective 30 days from the receipt of the notice.
How to become a motor vehicle dealer in Maine
To become a licensed auto dealer in Maine, applicants must submit a packet containing the following materials to the division to apply for licensure:
- completed application and fees (stated on application)
- completed and notarized questionnaire
- notarized zoning form
- partnership agreement
- lease agreement
- plot plan
- sales tax number
- Federal ID number or Social Security number
- background check