Maine Auto Dealer Bond

Home » Types of Surety Bonds » License and Permit Bonds » Auto Dealer Bond » Maine Auto Dealer Bond
Dealership with auto dealer bond in Maine working with family

What is a Maine auto dealer bond?

The Maine Bureau of Motor Vehicles requires anyone applying for a motor vehicle dealer license in the state to post a Motor Vehicle Dealer Bond. Bond requirements range from $25,000 to $100,000 depending on the number of vehicles sold yearly.

  • Up to 50 vehicles sold per year: $25,000 bond
  • 51-100 vehicles sold per year: $50,000 bond
  • 101-150 vehicles sold per year: $75,000 bond
  • More than 150 vehicles sold per year: $100,000 bond

An auto dealer bond holds dealers and dealerships accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law, the customer can file a claim against the bond for compensation.

Get Your Auto Dealer Bond in Maine:

How much does a Maine auto dealer bond cost?

Auto dealer bond premiums can vary based on applicants’ credit scores: the higher your credit score, the lower your annual premium. If you have excellent credit, you can expect to pay as little as 1% or less of the total bond amount. Other factors that may impact the cost of your bond include your industry experience and business and personal financials. 

ZipBonds can offer Maine auto dealer bonds for as low as $200 per year. Apply today!

Who needs an auto dealer surety bond in Maine?

If you’re a motor vehicle dealer or applying to become licensed as one, you’ll need to post a bond unless you only plan to sell light trailers. Anyone who wishes to engage in dealing at least five vehicles in 12 months, purchases vehicles to resell, or advertises or displays three or more vehicles for sale within 30 days on premises is considered an auto dealer in Maine. 

See the Maine Revised Statutes for more information.

How to Apply for Your Auto Dealer License in Maine

Follow this general process to apply for your dealer license in Maine:

  • File an application form with the Secretary of State.
  • Pay a fee.
  • Ensure you’re qualified (by sharing business history information and passing criminal background checks).
  • Complete and submit a Land Use Regulatory/Town Zoning form.
  • Submit your one-year lease, plot plan, corporation or partnership papers, and sales tax number.
  • Undergo an inspection of your business location by the Motor Vehicle Investigator.
  • Get garage liability insurance and a surety bond.

Find forms and other information on the SoS Motor Vehicle Dealer Licensing page.

Frequently Asked Questions

Since this bond requires underwriting, we can’t issue it to you instantly. However, the ZipBonds team always strives to deliver your bond to you within 24 hours of application.

The Secretary of State Bureau of Motor Vehicles regulates licensing and bonding for the motor vehicle industry in Maine. 

You must renew your bond and license each year by a specific date for them to remain active (so you can continue operating your business). Dealer licenses expire on the last day of the month one year from issuance.

If you’re buying your bond from Zip, we’ll send a reminder when the expiration date is approaching. That way, you’ll have plenty of time to renew your bond and maintain your business license.

A customer can file a claim if a dealer commits fraud or unethical or unlawful business activity. If the claim is valid, the surety may cover the customer’s losses up to the total amount of the bond. The dealer will then need to pay back the surety for the damages.

Claims can be costly and damage your reputation and ability to get licensed and bonded again, so it’s best to do everything you can to avoid them.

Avoid illegal activities and fraudulent business practices to prevent claims on your bond. Pay all taxes you owe. Also, ensure you comply with your licensing regulations. If a customer complains about something, address the issue immediately to avoid complaints from turning into costly claims.

How to Get Your Maine Auto Dealer Bond

ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to get bonded in a flash!

Hidden

About ZipBonds.com

Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.