Maine Motor Vehicle Dealer Surety Bond
A Maine motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale of motor vehicles within the State of Maine. The Maine Secretary of State, Bureau of Motor Vehicles (BMV) requires all dealer license applicants to post a surety bond. Maine uses a volume-based tiered bond schedule, with bond amounts ranging from $25,000 to $100,000 based on the number of vehicles sold in the previous year. Surety One, Inc. offers quick, no-hassle underwriting for Maine motor vehicle dealer bonds at every tier.
Bond Amount & Requirements
Maine Revised Statutes Title 29-A, Section 901, Subsection 4 requires all motor vehicle dealer license applicants to furnish a surety bond. The bond is filed on Form MVD-390 and is for the use and benefit of the Secretary of State, State of Maine, and for any person, firm, or operation who may suffer a loss due to the dealer’s regulatory noncompliance.
| Bond Amount | Annual Sales Volume | Description |
|---|---|---|
| $25,000 | 0 – 50 vehicles | New licensees and low-volume dealers |
| $50,000 | 51 – 100 vehicles | Mid-volume dealers |
| $75,000 | 101 – 150 vehicles | High-volume dealers |
| $100,000 | 151+ vehicles | Highest-volume dealers |
Important — Volume-Based Bond Tiers: Maine’s bond amount is determined by the dealer’s previous year’s sales volume. New licensees select their bond tier based on projected sales. If your annual vehicle sales exceed your current tier, the BMV may require you to increase your bond amount via a rider or replacement bond. The total amount of the surety applies to each license year, resetting annually. All claims must be filed within 3 years from the date of sale.
Who Needs This Bond?
Maine requires a dealer license for anyone who buys vehicles to resell them, who sells more than five (5) vehicles within 12 months, or who advertises or displays three (3) or more vehicles for sale within a 30-day period. The bond is required for:
- New (franchise) motor vehicle dealers
- Used motor vehicle dealers
- Wholesale / auction dealers
- Heavy trailer dealers (over 3,000 lbs)
- Motorcycle dealers
Exempt from bond: Light trailer dealers, light boat trailer dealers, equipment dealers, transporters, and loaners.
How Much Does the Bond Cost?
The cost is a small percentage of your required bond tier amount, determined by credit, financials, and experience. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
Maine Dealer License Requirements
- Completed dealer license application package (notarized questionnaire)
- Surety bond (Form MVD-390) for the appropriate volume tier
- State Police Bureau of Identification background check for all partners, managers, members, shareholders, directors, officers, and owners
- Zoning form approved by local authorities
- Plot plan of the business location
- Lease or rental agreement for the property (including lot, office, repair facility, and building size; signed and notarized)
- Property damage liability and automobile bodily injury insurance
- Form R-1348 (insurance submission) confirming dealer plate coverage
- Assumed name registration if operating under a trade name (filed with Maine Secretary of State)
- BMV Detective on-site inspection of the business location
- License fee: $150 annually ($50 for motorcycle dealers); dealer plates $20/year each
Filing, Renewal & Cancellation
The bond runs concurrently with the license period and terminates at 11:59 PM on the last day of the license period, unless a continuation certificate is provided. Two types of bonds are accepted: concurrent (matching license period) or continuous (remaining in force until canceled). Maine dealer licenses are valid for one year, expiring at the end of the same calendar month in the following year. The surety may cancel by giving 30 days’ written notice by registered or certified mail to the Secretary of State.
Bond Claims
The bond protects the Secretary of State, State of Maine, and any person, firm, or operation who suffers a loss due to the dealer’s failure to observe Title 29-A or rules promulgated thereunder. All claims must be filed within 3 years from the date of sale. The total liability of the surety applies to each license year, effectively resetting annually.
Maine Secretary of State
Bureau of Motor Vehicles — Dealer Licensing
29 State House Station
101 Hospital Street
Augusta, ME 04333-0029
Phone: (207) 624-9000 ext. 52143
Email: bmv.dealers@maine.gov
Web: maine.gov/sos/bmv
Surety One, Inc. is the Maine surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for Maine motor vehicle dealer bonds at every volume tier and all other license bond classes. Call us at (800) 373-2804, email Underwriting@SuretyOne.com, or chat with a live underwriter for immediate assistance.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
What We Need From You
Obligee's Bond Form
