Motor Vehicle Dealers - New or New and Used Vehicles

The Surety Bond for Motor Vehicle Dealer is a licensing requirement mandated by the State of Maine for businesses engaged in selling new vehicles or both new and used vehicles. This bond ensures that motor vehicle dealers operate in accordance with state regulations and consumer protection laws.

Motor vehicle dealerships that sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing process with the State of Maine. The bond requirement applies to established dealerships as well as new businesses entering the motor vehicle sales industry.

This bond protects the State of Maine and consumers from financial losses that may result from a dealer's failure to comply with state laws, regulations, or contractual obligations. Coverage includes protection against fraudulent practices, failure to transfer titles properly, or other violations of motor vehicle dealer regulations.

Bond amounts range from $25,000 to $100,000 depending on the dealer's business volume and risk profile. The bond term is one year and is renewable annually. Lower bond amounts ($25,000 and $50,000) require standard underwriting with a completed application and clean credit, while higher amounts ($75,000 and $100,000) require additional financial documentation for approval.