Motor Vehicle Dealers - Used Vehicles Only

The Motor Vehicle Dealer or Trailer Dealer - Used bond is a surety bond required by the State of Maryland for businesses that sell used motor vehicles or trailers. This bond ensures compliance with state regulations governing used vehicle sales and protects consumers from fraudulent or unethical business practices.

Used motor vehicle dealers and trailer dealers in Maryland must obtain this bond as part of their licensing requirements. The bond amount varies based on the dealer's classification, ranging from $5,000 to $50,000 for Class 3 dealers and $150,000 for Class 4 dealers. The specific bond amount is determined by factors such as the dealer's sales volume and business operations.

This bond protects the State of Maryland and consumers who purchase vehicles from licensed dealers. If a dealer violates state laws, engages in fraudulent practices, or fails to fulfill their obligations to customers, affected parties can file claims against the bond for financial compensation up to the bond amount.

The bond term is one year and must be renewed annually to maintain the dealer license. Dealers must keep their bond active and in good standing throughout their licensing period to continue operating legally in Maryland.