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Maryland Motorcycle or Trailer Dealer Bond

How much does a motorcycle or trailer dealer bond cost in Maryland?

The required amount of Maryland motorcycle or trailer dealer bonds depends on the type of vehicles your dealership sells and the number of vehicles sold in the previous calendar year of an existing business or the projected sales of a new business.

The amount you’ll pay for your bond is subject to underwriting and depends on your personal credit report.

If you need more information or to get bonded as a new, used, wholesale, or emergency vehicle dealer, please visit our Maryland auto dealer bond page.

Why do I need this bond?

Maryland motorcycle or trailer dealer bonds ensure that dealers conduct business ethically and lawfully. Specifically, these bonds ensure that vehicle or trailer dealers will:

  • not knowingly sell faulty vehicles
  • not tamper with odometers
  • honor all financing agreements
  • keep records of all vehicles bought and sold

This bond functions for various types of vehicle dealer licenses. Be sure to specify the type of vehicle you sell when applying.

What’s the fine print?

This bond is required by the State of Maryland Business Licensing & Consumer Services Division. Motorcycle or trailer dealer bonds are continuously effective until canceled. In the case of a cancellation, the surety must provide the state with written notice of termination 45 days prior to the termination date.

How to become a motorcycle or trailer dealer in Maryland

To become licensed, you must be sure that you have completed and submitted the following forms:

  • application for vehicle dealer’s license
  • zoning approval form from your local zoning authority
  • surety bond of vehicle or trailer dealer
  • proof of worker’s compensation coverage
  • criminal background check
  • copy of trader’s license
  • business registration letter from the Maryland State Department of Assessments and Taxation (SDAT)
  • automotive repair facility contract
  • franchise approval from manufacturer for each kind of new vehicle sold
  • new vehicle certification form
  • insurance information form
  • letter of good standing

As part of the business licensing review, an inspector will review your on-site facilities. Your license will only be issued if your business is found to be compliant with the Code of Maryland. Only one license is to be issued for each physical location. The license, once issued, must be displayed prominently at all times within the office.

Additional Resources

Maryland Department of Transportation Motor Vehicle Administration Dealer Information

Maryland Department of Transportation Motor Vehicle Administration Trailer Dealer Information

Motor Vehicle Administration Trailer Dealer Business Licensing Packet

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