Motor Vehicle Dealers - New or New and Used Vehicles

The Motor Vehicle Dealer or Trailer Dealer - New bond is a surety bond required by the State of Maryland for businesses that sell new motor vehicles or trailers. This bond is mandatory for obtaining and maintaining a motor vehicle dealer license in Maryland.

New motor vehicle dealers and trailer dealers must obtain this bond as part of their licensing requirements. The bond amount varies based on the dealer's classification: Class 3 dealers require bonds ranging from $15,000 to $50,000, while Class 4 dealers require bonds of $75,000 or higher, up to $300,000.

This bond protects the State of Maryland and consumers from financial losses that may result from the dealer's failure to comply with state motor vehicle laws and regulations. It ensures that dealers operate ethically and fulfill their obligations to customers, including proper handling of titles, warranties, and financial transactions.

The bond term is one year and is renewable annually. Dealers must maintain continuous bond coverage to keep their license active and in good standing with the Maryland Motor Vehicle Administration.