How much does an auto dealer bond cost in Maine?
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Maine Secretary of State Bureau of Motor Vehicles as part of the licensing requirements for new and used car dealerships to conduct business in the state. The Bureau of Motor Vehicles sets the total bond amount based on the dealer’s number of vehicles sold during the year:
- $25,000 bonds for motor vehicle dealers that sell between 0 – 50 vehicles
- $50,000 bonds for motor vehicle dealers that sell between 51 – 100 vehicles
- $75,000 bonds for motor vehicle dealers that sell between 100 – 150 vehicles
- $100,000 bonds for motor vehicle dealers that sell more than 150 vehicles
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Maine auto dealer bonds typically cost between 1% and 3% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Maine auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for auto dealer surety bonds in the State of Maine.
- EZ Surety has issued motor vehicle dealer bonds for premiums as low as $250.
Why are auto dealer bonds important in Maine?
Maine auto dealer bonds provide protection for customers, creditors, and the state government. When a Maine motor vehicle dealer posts a surety bond, they provide a guarantee to the bond’s Obligee (the Maine Bureau of Motor Vehicles) that they will conduct business in compliance with the conditions listed in Title 29-A M. R. S. A.
If the auto dealer fails to comply with the conditions, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
How to get your auto dealer license in Maine
To obtain your auto dealer license in Maine, you must meet the Maine Bureau of Motor Vehicles licensing requirements by completing the following steps:
- Complete the application for a dealer license and provide all requested documents
- Pass a place of business inspection by a Bureau of Motor Vehicles inspector
- Post the required surety bond