Who needs this bond?

Auto dealers in Maine must obtain this bond as part of the licensing process through the Bureau of Motor Vehicles. This applies to both new and used vehicle dealerships.

If you plan to sell vehicles to the public and are applying for or renewing a Maine dealer license, the state requires you to file the appropriate bond based on your annual sales volume.

The bond helps ensure that dealers follow Maine vehicle laws and operate honestly. It protects customers, lenders, and the state if a dealer commits fraud, violates licensing rules, or causes financial harm. If a claim is paid, the dealer is responsible for reimbursing the bonding company.

How much does this bond cost?

The bond amount required by the state ranges from $25,000 to $100,000, depending on how many vehicles you sell each year.

However, you do not pay the full bond amount. You pay a small percentage of that amount as your annual premium. In most cases, Maine auto dealer bond premiums fall between 1% and 3% of the required bond amount.

Rates are based on factors such as personal credit, financial history, licensing background, and industry experience. Applicants with strong credit often qualify for the lowest rates.

How do I get this bond?

Getting your Maine auto dealer bond is a straightforward process:

  • First, complete a short bond application with basic business and personal information.
  • Next, the bonding company reviews your credit and background to determine your rate.
  • Once approved and payment is made, the bond is issued so you can file it with the Bureau of Motor Vehicles.

The bond is one of several requirements for obtaining your Maine dealer license. You will also need to complete the dealer license application, provide required documents, and pass a business location inspection by the Bureau of Motor Vehicles before your license is issued.

Can I get this bond with bad credit?

Yes, you can still qualify for a Maine auto dealer bond with less-than-perfect credit.

While credit history does impact your rate, it does not automatically prevent you from getting bonded. Many applicants with lower credit scores or past financial challenges are still approved, though at a higher premium.

Bonding companies look at the full picture, including experience in the industry and overall financial stability.

How fast can I get this bond?

Most Maine auto dealer bonds can be issued quickly once a completed application is submitted. Many applicants receive a quote the same day, and bonds are often issued within one business day after payment.

Starting early helps prevent delays in your licensing process, especially if you are working toward a new license or renewal deadline.

Are there any local requirements?

The bond requirement is set at the state level by the Maine Bureau of Motor Vehicles. The required bond amount is based on your projected annual vehicle sales.

In addition to the bond, you must complete the full dealer licensing process, which includes submitting the required application, providing supporting documents, and passing a business location inspection.

If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.