Auto Dealer Bonds – Massachusetts
A $25,000 motor vehicle dealer bond is required in the state of Massachusetts in order to operate a dealership. This is a state-wide requirement, but is enforced by each individual city within Massachusetts. For example, if you operate a dealership in Boston, your bond is enforced by the city of Boston. The Let’s Roll button below will take you right into the application to get a quick quote.
What Is a Dealer Bond?
A dealer bond is used as a financial guarantee to ensure that dealers are following the law. As part of the requirements for obtaining a dealer license, the dealer shows financial responsibility by fulfilling that requirement.
The bond’s purpose is to repay a customer when a dealer does not follow regulations and causes the customer to lose money. Once the bond has paid out the amount required, the dealer will still have to pay back the surety in the amount that was paid to the customer.
What Does a Bond Cost?
Since there is only one bond limit for dealers in Massachusetts, the cost of your used dealer bond will be based largely on personal factors. At Jet Surety, we look at your credit score and credit history, as well as other things like years in business, to determine what you will have to pay.
Our rates for a $25,000 used dealer bond start at $13 each month. You could also qualify for a yearly payment of $150.
|Price Tier*||Motor Vehicle
|Monthly | Annual|
|Preferred||$13 | $150|
|Standard||$27 | $325|
|Credit Repair||$47 | $500|
*Prices will vary depending on credit score and the other factors mentioned above. Not all price tiers that are available are shown in this chart. The rates shown are subject to change and are not a guarantee.
Massachusetts Dealers That Need a Bond.
There are 3 classes of dealers in Massachusetts:
- Class 1- New Motor Vehicle Dealers and Manufacturers
- Class 2- Used Motor Vehicle Dealers
- Class 3- Motor Vehicle Junk/Salvage Dealers
The only dealer class that needs a bond is Class 2– Used Motor Vehicle Dealers. The dealer must have a $25,000 bond in order to receive or renew their license from local ordinances.
Click Apply Now below to start the application process, which takes less than a minute. Jet works hard to deliver a low rate within one business day.
|Bond Application for MA Dealers|
|$25,000 Used Dealer Bond|
What Claims Can Be Made Against a Dealer?
As mentioned before, a customer can make a claim if a dealer does not follow regulations. The bond will cover instances of a used dealer:
- Not completing payment for the purchase of a vehicle
- Not giving a title certificate that is free of previous owner’s liens and interests
- Selling a stolen vehicle
- Withholding mileage during transaction
- Committing fraud or misrepresentation or failing to deliver on a warranty claim
- Failing to pay off a lien after taking on the responsibility of the lien
Dealer License Information.
When applying for your dealer license, you must contact the city or town where you wish to do business. Dealer licenses are only dealt by local ordinances, not by the state. However, the bonding requirement ($25,000 for used dealers) is a mandatory statewide. Your local governing body will not issue a license if you don’t have a bond or renew your license without a bond.