Massachusetts Motor Vehicle Dealer Surety Bond
A Massachusetts motor vehicle dealer surety bond — officially called the “Second Hand Motor Vehicle Dealer Bond” (Form S-6472) — is a required license bond for Class II (used vehicle) dealers operating within the Commonwealth of Massachusetts. Massachusetts has a unique municipal licensing system: dealer licenses are issued by individual cities and towns, not by the state, but the Massachusetts Registry of Motor Vehicles (RMV) serves as the bond’s obligee and oversees general registration and dealer plates. Surety One, Inc. offers quick, no-hassle underwriting for Massachusetts motor vehicle dealer bonds.
Bond Amount & Requirements
Massachusetts General Laws Part I, Title 20, Chapter 140, Section 58 requires a $25,000 surety bond for any person who works as a vehicle manufacturer agent or Class II vehicle dealer. The bond is for the use and benefit of any person who suffers a loss due to the dealer’s violations.
| Bond Amount | License Class | Bond Required? | Description |
|---|---|---|---|
| $25,000 | Class II — Used Vehicle Dealer | Yes | Buys, sells, or exchanges used motor vehicles |
| $10,000 | Auto Repair Shop | Yes | Independent auto repair businesses |
| N/A | Class I — New & Used Dealer | No | Franchise dealer selling new and used vehicles |
| N/A | Class III — Salvage / Junk Dealer | No | Salvages motor vehicle parts |
Important — Bond Required Only for Class II Dealers: Massachusetts is one of the few states where the surety bond is not required for all dealer types. Only Class II (used vehicle) dealers and auto repair shops must post a bond. Class I (new and used franchise) dealers and Class III (salvage/junk) dealers are exempt from the bond requirement. A separate bond is required for each different business name under which the dealer operates. Additionally, Massachusetts uses a municipal licensing system — your dealer license is issued by the city or town where your dealership is located, not by the state RMV.
Who Needs This Bond?
Massachusetts defines a “dealer” as any person who buys, sells, or exchanges motor vehicles, trailers, or motor vehicle bodies in a maintained business facility open to the public. The bond is required for:
- Class II used motor vehicle dealers — $25,000 bond
- Independent auto repair shops — $10,000 bond
Exempt from bond: Class I (new/used franchise) dealers and Class III (salvage/junk) dealers.
How Much Does the Bond Cost?
The cost is a small percentage of the $25,000 bond 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.
Massachusetts Dealer License Requirements
Because Massachusetts uses municipal licensing, requirements vary by city or town. Common requirements include:
- Completed dealer license application from your local municipality
- $25,000 surety bond (Form S-6472) for Class II dealers
- Vehicle record-keeping system (bound book, Electronic Used Car Record book, or Genesys Systems)
- List of authorized users with access to Section 5 plates, with photographed driver’s licenses
- Municipal licensing fee ($100–$200, set by the city/town; by law cannot exceed $200)
- State Police inspection of the dealership premises
- General Dealer Registration and dealer plates from the RMV (separate process from local license)
Filing, Renewal & Cancellation
Regardless of the date of issue, the Massachusetts motor vehicle dealer bond expires on January 1st and must be renewed every year. Dealer licenses are also renewed annually. The licensing process through your local municipality can take up to two months for approval. After local licensing, a separate application to the RMV for General Registration and dealer plates requires a State Police inspection of the dealership.
Bond Claims
Claims against the Massachusetts used car dealer bond may be filed by any person who suffers loss due to the dealer’s fraud, deceptive practices, negligence, or regulatory noncompliance, including the sale of stolen vehicles. Claimants must obtain a final judgment against the dealer from a court before the surety is required to pay — the surety does not pay on complaint alone.
Massachusetts Registry of Motor Vehicles (RMV)
Massachusetts Department of Transportation
P.O. Box 55889
Boston, MA 02205
Phone: (857) 368-8030
Web: mass.gov/rmv
Surety One, Inc. is the Massachusetts surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for Massachusetts Class II used dealer bonds, auto repair shop bonds, 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.
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