The Maryland Used Motor Vehicle or Trailer Dealer Bond is a surety bond required by the Maryland Department of Transportation, Motor Vehicle Administration (MVA) as a licensing requirement for all individuals or businesses that deal with or sell used motor vehicles.
This surety bond involves the principal (the motor vehicle or trailer dealer), the obligee (Maryland MVA), and the surety company. The surety assures the obligee that any authorized work performed by the principal will comply with the Maryland Transportation Article and regulations established by the Administrator of Motor Vehicles.
If the principal fails to meet their obligations, the injured party may file a claim against the principal’s bond. After an investigation into the validity of the claim, the surety company may compensate the claimant up to the full bond amount. Acts of fraud, failure to pay sellers of vehicles or taxes on time, and engaging in illegal sales practices are a few examples that may be valid causes for claims.
Bonds differ from insurance policies in that the principal is responsible for reimbursing the surety company for any claims paid out, plus additional fees and expenses. It should be noted that the state requires this bond for licensing purposes, but it does not protect the used motor vehicle or trailer dealer from financial harm like a traditional insurance policy.
The Maryland Used Motor Vehicle or Trailer Dealer Bond is required as part of the license application process for Maryland Dealer Licenses.
As per the Maryland MVA, a seller of previously owned motor vehicles to the general public and other dealers is considered a used motor vehicle dealer. The dealer must have a physical establishment appropriate for retail transactions, and the sale of vehicles must be the primary or sole commercial activity at that location.
This requirement also applies to any trailer dealer who sells new trailers through a franchise contract with an authorized manufacturer or distributor.
The bond amount for the Maryland Used Motor Vehicle or Trailer Dealer Bond is determined by the applicant’s license type and the number of vehicles sold or transferred within a year.
For example, a Maryland Used Dealer that sells 1-250 vehicles will need a bond amount of $15,000, while another dealer that sells over 2,500 vehicles will need a bond amount of $150,000.
Meanwhile, trailer dealers are required to have a minimum bond amount of $5,000 for trailers (including boat trailers) under 15 feet long. The bond amount for trailers 15 feet or longer will range from $15,000 to $150,000 based on the quantity sold or transferred, similar to the bond amount for used motor vehicle dealers.
Regardless, you are only required to pay a small percentage of the full bond amount, known as a premium. Your premium rate is determined by your credit score and experience. It is important to note that the soft credit check used to quote your bond will not affect your credit score.
Applicants with excellent credit may receive quotes as low as 1%-3% of the bond amount. However, we encourage applicants with nonstandard credit to apply for their bonds anyway. EZ Surety Bonds works with several surety companies to find you the best rates available.
The obligee, or entity that requires the Maryland Used Motor Vehicle or Trailer Dealer Bond, is the Maryland MVA. The following is their contact information:
Maryland Department of Transportation
Motor Vehicle Administration
Business Licensing and Compliance Division
6601 Ritchie Highway
Glen Burnie, MD 21062
Phone: 410-768-7000
Obtaining a quote for your Maryland Used Motor Vehicle or Trailer Dealer Bond is quick and free with EZ Surety Bonds. Simply fill out our short online application and one of our friendly surety experts will contact you within 24 hours regarding your free quote.
We are happy to assist you! If you have questions, please contact us via email at bonds@southcoastsurety.com or by phone at 1-800-361-1720.
To become a licensed dealer in Maryland, follow these steps:
The Maryland Dealer License is valid for two years and must be renewed before expiration.
The cost of a Maryland Used Motor Vehicle or Trailer Dealer Bond is determined by the bond amount required, as well as the credit and experience of the applicant. The bond amount itself can range from $15,000 up to $150,000. The bond amount for dealers of boat trailers and trailers under 15 feet in length is $5,000.
The cost of this bond may be as low as 1%-3% for applicants with optimal credit. We work with a variety of surety markets to offer competitive quotes. And, because the credit check will not hurt your credit score, we encourage you to apply for your bond even if you have nonstandard credit.
After you purchase the bond, we will mail the original document to you. Most obligees require you to file the original bond document with them (often signed by the principal). However, every obligee has its own unique filing requirement, so be sure to confirm your obligee's filing requirements before doing anything with your bond.
The Maryland Used Motor Vehicle or Trailer Dealer Bond is a surety bond required by the Maryland Department of Transportation, Motor Vehicle Administration (MVA) as a licensing requirement for all individuals or businesses that deal with or sell used motor vehicles.
This surety bond involves the principal (the motor vehicle or trailer dealer), the obligee (Maryland MVA), and the surety company. The surety assures the obligee that any authorized work performed by the principal will comply with the Maryland Transportation Article and regulations established by the Administrator of Motor Vehicles.
If the principal fails to meet their obligations, the injured party may file a claim against the principal’s bond. After an investigation into the validity of the claim, the surety company may compensate the claimant up to the full bond amount. Acts of fraud, failure to pay sellers of vehicles or taxes on time, and engaging in illegal sales practices are a few examples that may be valid causes for claims.
Bonds differ from insurance policies in that the principal is responsible for reimbursing the surety company for any claims paid out, plus additional fees and expenses. It should be noted that the state requires this bond for licensing purposes, but it does not protect the used motor vehicle or trailer dealer from financial harm like a traditional insurance policy.
The Maryland Used Motor Vehicle or Trailer Dealer Bond is required as part of the license application process for Maryland Dealer Licenses.
As per the Maryland MVA, a seller of previously owned motor vehicles to the general public and other dealers is considered a used motor vehicle dealer. The dealer must have a physical establishment appropriate for retail transactions, and the sale of vehicles must be the primary or sole commercial activity at that location.
This requirement also applies to any trailer dealer who sells new trailers through a franchise contract with an authorized manufacturer or distributor.
The bond amount for the Maryland Used Motor Vehicle or Trailer Dealer Bond is determined by the applicant’s license type and the number of vehicles sold or transferred within a year.
For example, a Maryland Used Dealer that sells 1-250 vehicles will need a bond amount of $15,000, while another dealer that sells over 2,500 vehicles will need a bond amount of $150,000.
Meanwhile, trailer dealers are required to have a minimum bond amount of $5,000 for trailers (including boat trailers) under 15 feet long. The bond amount for trailers 15 feet or longer will range from $15,000 to $150,000 based on the quantity sold or transferred, similar to the bond amount for used motor vehicle dealers.
Regardless, you are only required to pay a small percentage of the full bond amount, known as a premium. Your premium rate is determined by your credit score and experience. It is important to note that the soft credit check used to quote your bond will not affect your credit score.
Applicants with excellent credit may receive quotes as low as 1%-3% of the bond amount. However, we encourage applicants with nonstandard credit to apply for their bonds anyway. EZ Surety Bonds works with several surety companies to find you the best rates available.
The obligee, or entity that requires the Maryland Used Motor Vehicle or Trailer Dealer Bond, is the Maryland MVA. The following is their contact information:
Maryland Department of Transportation
Motor Vehicle Administration
Business Licensing and Compliance Division
6601 Ritchie Highway
Glen Burnie, MD 21062
Phone: 410-768-7000
Obtaining a quote for your Maryland Used Motor Vehicle or Trailer Dealer Bond is quick and free with EZ Surety Bonds. Simply fill out our short online application and one of our friendly surety experts will contact you within 24 hours regarding your free quote.
We are happy to assist you! If you have questions, please contact us via email at bonds@southcoastsurety.com or by phone at 1-800-361-1720.
To become a licensed dealer in Maryland, follow these steps:
The Maryland Dealer License is valid for two years and must be renewed before expiration.
The cost of a Maryland Used Motor Vehicle or Trailer Dealer Bond is determined by the bond amount required, as well as the credit and experience of the applicant. The bond amount itself can range from $15,000 up to $150,000. The bond amount for dealers of boat trailers and trailers under 15 feet in length is $5,000.
The cost of this bond may be as low as 1%-3% for applicants with optimal credit. We work with a variety of surety markets to offer competitive quotes. And, because the credit check will not hurt your credit score, we encourage you to apply for your bond even if you have nonstandard credit.
After you purchase the bond, we will mail the original document to you. Most obligees require you to file the original bond document with them (often signed by the principal). However, every obligee has its own unique filing requirement, so be sure to confirm your obligee's filing requirements before doing anything with your bond.
