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License Bond

Surety Bond for Motor Vehicle Dealer

Any person engaged in the business of buying, selling, exchanging, offering to negotiate, negotiating, or advertising the sale of vehicles, including new and used vehicle dealers, motorcycle dealers, heavy trailer dealers, and vehicle auctions. Required when: Required as a condition of obtaining or renewing a motor ve…

Overview

What it is.

Any person engaged in the business of buying, selling, exchanging, offering to negotiate, negotiating, or advertising the sale of vehicles, including new and used vehicle dealers, motorcycle dealers, heavy trailer dealers, and vehicle auctions. Required when: Required as a condition of obtaining or renewing a motor ve…

Who usually needs it

Any person engaged in the business of buying, selling, exchanging, offering to negotiate, negotiating, or advertising the sale of vehicles, including new and used vehicle dealers, motorcycle dealers, heavy trailer dealers, and vehicle auctions.

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.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. 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.

Details

Bond details.

StateME
Bond amountBased on the number of vehicles sold in the prior year: 0-50 sales: $25,000; 51…
Term lengthContinuous
ObligeeMaine Department of the Secretary of State, Bureau of Motor Vehicles
RenewalThe bond is continuous and remains in effect until cancelled. The Secretary of State reviews the bond amount annually during the license renewal process to ensure it matches the dealer's sales volume.
Bond classLicense Bond
CategoryOther
BondSurety Bond for Motor Vehicle Dealer
Statutory referenceMaine Revised Statutes Title 29-A, Section 901(4)
JurisdictionState
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Next step

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