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Maryland Motor Vehicle Dealer Bond

Maryland Motor Vehicle Dealer Bond

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Who Requires the Motor Vehicle Dealer Bond and Why Is It Needed?

Salesman. Motor Vehicle Dealer Bond for auto dealers or others who buy, sell, auction, or repair cars or other motor vehicles.

The State of Maryland requires that motor vehicle dealers operating in the state post a Surety Bond of Vehicle or Trailer Dealer in conjunction with the licensing process. The surety bond amount varies based on the number of vehicles sold by the dealer annually and the dealer license type (e.g. new car, used car, motorcycle, wholesale, trailer, etc.). The following table outlines the specific requirements by license type and vehicles sold. 

License Type

Number of Vehicles Sold

Amount

New Vehicle

1-500

$50,000

 

501-1,000

$75,000

 

1,001-2,500

$100,000

 

Over 2,500

$300,000

Used Vehicle

1-250

$15,000

 

251-500

$25,000

 

501-1,000

$35,000

 

1,001-2,500

$50,000

 

Over 2,500

$150,000

Wholesale

1-250

$15,000

 

251-500

$25,000

 

501-1,000

$35,000

 

1,001-2,500

$50,000

 

Over 2,500

$150,000

Trailer

Boat

$5,000

 

Under 15 feet

$5,000

 

Over 15 feet:

 
 

1-250

$15,000

 

251-500

$25,000

 

501-1,000

$35,000

 

1,001-2,500

$50,000

 

Over 2,500

$150,000

Motorcycle

1,500

$50,000

(new)

Over 500

$75,000

Motorcycle

1-250

$15,000

(used)

251-500

$25,000

 

Over 500

$35,000

Emergency

1-500

$50,000

Vehicles (new)

Over 500

$75,000

Emergency

1-250

$15,000

Vehicles (used)

251-500

$25,000

 

Over 500

$35,000

Title Service

 

$25,000

 

How Much Will My Surety Bond Cost?

Take 2 minutes to provide the basic information required to get the best rates for your Maryland Motor Vehicle Dealer Bond. The quote request is free and there is no obligation to you. If you prefer, please call 1‐800‐608‐9950 to speak with one of our friendly bond experts. We can help guide you through the bonding process and identify the lowest cost in the market for your situation.

If you are interested in spreading out the cost of your bond over time, we can offer convenient financing plans for many types of surety bonds. More information will be provided with your quote.

What is Needed to Obtain My License?

The following is an overview of key Maryland vehicle dealer licensing requirements.

  • Application for Vehicle Dealers License (CS-042).
  • Zoning Approval Form (CS-053).
  • Department of Assessment and Taxation form/letter that verifies you are registered to do business in the State of Maryland using the name(s) indicated on your application.
  • Completed Dealer Site Inspection. Prior to becoming licensed, an investigator will go to your place of business and inspect your location to ensure compliance with the Maryland Code of Regulations (COMAR).
  • Repair Facility Contract (CS-125
  • Dealer Orientation Request – Before a license can be issued, you must attend a dealer orientation.
  • ERT Contract – All new licensees are required to contract with an Electronic Registration and Titling (ERT) provider. A copy of your ERT contract is required to be submitted along with your completed application.
  • Criminal Background Check – All applicants/licensees must submit a Criminal Background Check. If you live or have lived in another state within the last year, you must provide a criminal record from that state in addition to the Maryland record check.
  • Surety Bond of Vehicle or Trailer Dealer (CS-067A). The bond required is based on the number of vehicles you sold/ projected to be sold. The bond must be in the full name of the dealership including any trade name. It must reflect the full name of all officers, partners, or owners exactly as shown on the application.
  • Workers’ Compensation Insurance
  • Trader’s License (copy) – A copy of the trader’s license obtained from the Circuit Court in the jurisdiction where your business is located is required.
  • Use and Occupancy Permit – Is required by applicants using a trailer as an office.
  • Franchise Approval from Manufacturer
  • New Vehicle Certification Form (CS-22)
  • Additional items may be needed and exact requirements may vary based on applicant, license type or obligee discretion. Please see obligee and state links in the Other Helpful Information and Links section below or contact the obligee directly for more information.

 




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