Maine Motor Vehicle Dealer Bonds
While there are many dealers in the Maine auto industry, not all are required to have a bond. The dealers who will receive their license without bonding requirements are light trailer (under 2,000 pounds) and equipment dealers, as well as loaners and transporters. Dealers who must have a bond are new and used car dealers, motorcycle dealers and auction dealers.
Once the bond is purchased, the original will be sent to you to file with your inspector. New applicants will need to send in the original copy of the bond with the rest of their paperwork to the Department of the Secretary of State, Bureau of Motor Vehicles.
Qualifications of Bond Limits.
In Maine, bond limits are determined based on the number of vehicles sold within a year. If it is your first time applying for a license, your bond limit will be determined by your projected sales. If renewing your license, you will have to look at the number of vehicles sold in the last year. The Secretary of State will annually verify that each licensee has the correct bond limit for their business.
|Number of Vehicles Sold||Bond
Cost of a Dealer Bond in Maine.
Bonding is a great tool for dealers as you only have to pay a small portion of the bond limit to receive your bond. Your actual cost will be measured initially by the amount required for your license and then by personal factors, like years in business, credit score, and past credit history. Once these factors are considered, Jet Surety uses several insurance companies to find you the lowest price.
|Monthly | Annual||Monthly | Annual||Monthly | Annual||Monthly | Annual|
|Preferred||$13 | $150||$25 | $300||$38 | $450||$50 | $600|
|Standard||$27 | $325||$54 | $650||$63 | $750||$83 | $1000|
|Credit Repair||$47 | $500||$94 | $1000||$135 | $1500||$177 | $2000|
*Prices are based on several factors including, but not limited to, personal credit, license history, years in business, and active licensing and bonding. Not all available pricing tiers are shown. Rates do not constitute an offer of bonding and are subject to change at any time.
Steps to Take to Get a Dealer License.
The application process for a car dealer is simple if the steps are followed. To receive your dealer license, you must submit:
- Completed application
- Appropriate fees
- Applicant’s name and phone number
- Business location and phone number
- Type of business organization (individual, partnership, or corporation)
- Applicant’s business history and any criminal offenses in the last 5 years
- Land Use Regulatory/Town Zoning form
- 1-year lease, if needed
- Plot plan of business location
- Partnership/Corporation papers
- Sales Tax Number
- Garage Liability Insurance
- Inspection of proposed dealership location
- Surety Bond in the correct amount and ensuring title and mileage of vehicles sold