This bond is required for anyone who wants to legally sell cars, trucks, or motorcycles in Massachusetts. The state requires this $25,000 bond to protect consumers who buy vehicles from your dealership. If you break state laws, engage in fraud, or fail to meet your legal obligations to customers, they can file a claim…
Overview
What it is.
This bond is required for anyone who wants to legally sell cars, trucks, or motorcycles in Massachusetts. The state requires this $25,000 bond to protect consumers who buy vehicles from your dealership. If you break state laws, engage in fraud, or fail to meet your legal obligations to customers, they can file a claim…
Who usually needs it
Used vehicle dealers holding a Class 2 license in Massachusetts must obtain this bond as a mandatory condition of licensure from the Registry of Motor Vehicles. The bond is required for each different business name and each city or town where the dealer operates, and must be valid from January 1 through December 31st of each year.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateMABond amount$25,000ObligeeState of MassachusettsBond classLicense BondCategoryMotor VehicleBondMassachusetts Motor Vehicle Dealer BondJurisdictionStatePlain descriptionThis bond is required for anyone who wants to legally sell cars, trucks, or motorcycles in Massachusetts. The state requires this $25,000 bond to protect consumers who buy vehicles from your dealership. If you break sta…Who needs this bondUsed vehicle dealers holding a Class 2 license in Massachusetts must obtain this bond as a mandatory condition of licensure from the Registry of Motor Vehicles. The bond is required for each different business name and …
