Massachusetts Used Auto Dealer Bond Overview
- Purpose: To protect buyers from fraud and malpractice by a used auto dealer
- Who Needs It: Licensed used auto dealers in Massachusetts
- Regulating Body: The Massachusetts Registry of Motor Vehicles (RMV) local licensing offices
- Bond Amount: $25,000
- Minimum Price: $250
What Is a Massachusetts Used Auto Dealer Bond?
Massachusetts used auto dealer bonds are a financial guarantee that dealers will conduct business according to state laws.
The bond protects the state and car buyers from harm if a used auto dealer commits fraud or malpractice.
Who Needs a Used Auto Dealer Bond?
The Massachusetts RMV requires all used auto dealers to have a $25,000 surety bond to be licensed and ensure legal business practice.
Massachusetts defines a “dealer” as any person who buys, sells, or exchanges motor vehicles while maintaining a dedicated facility for business.
Note: You do not need a surety bond as a new (Class 1) vehicle dealer.
How Much Do Used Dealer Bonds Cost in Massachusetts?
Massachusetts used auto dealer bonds start at $250 for a one-year term. Exact rates vary based on your credit history. You can also save 25% by selecting a multi-year term. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Used Auto Dealer Bond Work?
When you file a dealer surety bond, you enter a three-party agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the licensed auto dealer |
| 2. Obligee | The Massachusetts Registry of Motor Vehicles |
| 3. Surety | The issuing surety provider |
If you break contract terms, harmed parties can file a claim on the bond. The surety will pay valid claims and you must reimburse them later on.
How Do I Get a Used Auto Dealer Bond?
Follow these quick steps to get your Massachusetts used auto dealer bond:
- Apply for a quote
- Pay the premium
- File your bond with the obligee
You’ll get a quote within one business day or less. The RMV requires you to file the physical bond form with your local licensing office. We offer overnight, two-day and three-day shipping options.
Can I Get Bonded With Bad Credit?
We approve 99% of applicants, even with poor credit. However, if you’re concerned about qualifying, read about our Bad Credit Options and Premium Financing.
How Do I Renew My Bond?
Massachusetts used auto dealer bonds expire annually. You’ll receive renewal reminders starting 90 days before the expiration date. Renew your bond by paying the invoice from the reminders.
How Do I Update My Bond Information?
If you need to update information on your bond, contact our Customer Care team:
- [email protected]
- 1(800)308-4358
We’ll issue a bond rider for simple fixes like name and address. Larger updates may require a new bond form.
How to Become a Used Car Dealer in Massachusetts
Used car dealers require a Class 2 license. Apply for your license with your local municipality. Typically, you’ll need the following materials:
- Zoning compliance certificate
- Ownership or lease agreement for business location
- Business entity documents
- Business certificate and trade name
- Employer tax ID
- Worker’s compensation insurance (if applicable)
- Purchase and Sales Agreement
- $25,000 surety bond
After getting your license, register online with MyRMV to get your plates. Submit the RMV Business Partner and Administrator Access Form to gain access to the eServices portal.
Usually, the full licensing process takes four to ten weeks. Learn about how to apply for a dealer registration in more detail. Direct all questions to the RMV by calling (857)368-8000.
