Maryland Motor Vehicle Dealer Surety Bond
A Maryland motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale or distribution of motor vehicles within the State of Maryland. The Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA) requires all dealer license applicants to post a surety bond as part of the licensing process. Maryland’s bond amounts are volume-based, ranging from $5,000 to $300,000 depending on the dealer license type and the number of vehicles sold or projected to be sold annually. Surety One, Inc. offers quick, no-hassle underwriting for Maryland motor vehicle dealer bonds, including options for new applicants and those with challenged credit.
Bond Amount & Requirements
Maryland Code §15-302 of the Transportation Article mandates that all motor vehicle dealer license applicants purchase and maintain a surety bond. The bond must be filed using Form CS-067A (Surety Bond of Vehicle or Trailer Dealer). The bond amount is determined by your license type and annual sales volume, as detailed in the schedule below.
New Motor Vehicle Dealer Bond Schedule
| Annual Vehicles Sold | Bond Amount |
|---|---|
| 1 – 500 vehicles | $50,000 |
| 501 – 1,000 vehicles | $75,000 |
| 1,001 – 2,500 vehicles | $100,000 |
| 2,500+ vehicles | $300,000 |
Used Motor Vehicle Dealer / Wholesale Dealer Bond Schedule
| Annual Vehicles Sold | Bond Amount |
|---|---|
| 1 – 250 vehicles (most common) | $15,000 |
| 251 – 500 vehicles | $25,000 |
| 501 – 1,000 vehicles | $35,000 |
| 1,001 – 2,500 vehicles | $50,000 |
| 2,500+ vehicles | $150,000 |
Other Dealer Types
| License Type | Bond Amount |
|---|---|
| Trailer Dealer (trailers over 15’ in length) | $5,000 |
| Motorcycle Dealer (New) — follows New Vehicle schedule above | $50,000–$300,000 |
| Motorcycle Dealer (Used) — follows Used Vehicle schedule above | $15,000–$150,000 |
| Emergency Vehicle Dealer — follows New or Used schedule by type | $15,000–$300,000 |
| Manufacturer / Distributor / Factory Branch | Varies |
Important — Volume-Based Bond Amounts: Maryland is one of the few states where the bond amount scales with the number of vehicles sold. If you are unsure which bond amount applies to your dealership, contact the MDOT MVA Business Licensing Office at (410) 787-2952 or email MVABLDISD@MDOT.MARYLAND.GOV before purchasing your bond.
Who Needs This Bond?
The Maryland MVA considers anyone who sells or deals in motor vehicles, either directly or indirectly, to be a motor vehicle dealer requiring a license and surety bond. Separate license types and bond forms are required for motorcycle dealers, trailer dealers, and boat dealers.
The bond is required for:
- New (franchise) motor vehicle dealers
- Used motor vehicle dealers
- Wholesale motor vehicle dealers
- Motorcycle dealers (new and used)
- Trailer dealers (trailers over 15 feet in length)
- Emergency vehicle dealers (new and used)
- Manufacturers, second-stage manufacturers, and distributors
- Automotive dismantlers/recyclers and scrap processors
How Much Does the Bond Cost?
The cost of a Maryland motor vehicle dealer surety bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by a number of underwriting factors including your personal credit score, business financial strength, industry experience, and claims history. For bond amounts over $50,000, surety companies will typically require a review of business financial statements. Because each applicant’s profile is unique, premiums vary and are quoted on an individual basis.
Surety One, Inc. offers competitive rates for all credit profiles, including programs for applicants with challenged credit. Surety bond application review and quoting are free of charge. There is no obligation to purchase. Contact us for your personalized quote.
Maryland Dealer License Requirements
In addition to the surety bond, the MDOT MVA requires the following for a dealer license:
- Completed Application for Vehicle Dealers License (Form CS-042)
- Department of Assessments and Taxation letter confirming business registration in Maryland
- Form CP-575 from IRS issuing the FEIN/EIN number
- Criminal Background Check Authorization (Form CS-011) for all applicants/licensees
- An enclosed building suitable for the sale of motor vehicles
- Repair facility on-site or a repair contract with a facility at a reasonable distance
- Zoning approval from the local zoning authority
- Certificate of Liability Insurance
- Workers’ Compensation Insurance (if employees)
- Electronic Registration and Titling (ERT) provider contract
- Dealer Orientation completion (held monthly by MVA)
- Franchise agreement / manufacturer letter (new vehicle dealers only)
- Applicable licensing fees
Note: The bond must be in the full name of the dealership including any trade name or DBA, and must reflect the full names of all officers, partners, or owners exactly as shown on the application. The bond must be signed by all officers, partners, or owners.
Filing, Renewal & Cancellation
The executed surety bond (Form CS-067A) may be uploaded via the MDOT MVA e-Services Portal or mailed to the Business Licensing office. After the application and bond are submitted, the MVA will review the application and schedule an inspection. Upon passing inspection, the dealer must complete Dealer Orientation before the license is issued.
Maryland dealer licenses are valid for two years from the date of issuance. The bond itself is continuous — it does not need to be re-filed at each license renewal, but it must be renewed at expiration to avoid cancellation. If the bond lapses, the dealer license may be suspended or revoked.
Bond Claims
A claim against the Maryland motor vehicle dealer surety bond may be filed by any person who suffers financial harm as a result of the dealer’s failure to comply with the Transportation Article of the Annotated Code of Maryland. Common claim triggers include failure to deliver title, misrepresentation of vehicle condition, failure to pay required taxes and fees, and other violations of dealer licensing law. The surety company will investigate each claim and compensate valid claims up to the full bond amount. The bonded dealer is then required to reimburse the surety for any amounts paid.
Maryland Department of Transportation
Motor Vehicle Administration (MDOT MVA)
Business Licensing & Consumer Services, Room 146
6601 Ritchie Highway, NE
Glen Burnie, MD 21062
Phone: (410) 787-2952
Email: MVABLDISD@MDOT.MARYLAND.GOV
Web: mva.maryland.gov
Surety One, Inc. is the Maryland surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates and excellent customer service for Maryland motor vehicle dealer bonds at every volume level and all other license bond classes. Need help meeting your MDOT MVA licensing requirements? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com, or click here to chat with a live underwriter (no bots!) for immediate assistance. We’re here to support your business success.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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