Effective October 4, 2017, the minimum surety bond amount required for Maine motor vehicle dealers is increasing with the passage of Maine House Bill 1084 . Previously, the bond amount ranged from $5,000 to $25,000. Under the new legislation, the bond amount ranges from $25,000 to $100,000.
How are surety bond amount requirements determined?
For those who are applying for a Maine motor vehicle dealer license for the first time, the required bond amount will be determined by the Secretary of State and is based on projected sales volume. Motor vehicle dealers planning to renew their license will need a bond in an amount determined by the quantity of sales conducted in the previous year. The number of vehicles sold and corresponding bond amounts are as follows:
- 0-50 vehicles sold = $25,000 surety bond
- 51-100 vehicles sold = $50,000 surety bond
- 101-150 vehicles sold = $75,000 surety bond
- 151+ vehicles sold = $100,000 surety bond
These new bond amounts do not apply to equipment and light trailer dealers.
How much does it cost to get a bond?
Maine motor vehicle dealers will pay a premium amount that is determined by an underwriter based on factors such as credit score. All owners with a stake of 10% or more in the business will be reviewed prior to receiving a quote in order to project the risk of issuing the bond. The actual amount paid is a percentage of the total bond amount—typically between 1% and 10%. More information about surety bond costs can be found on our website.
How does one get a Maine motor vehicle dealer bond?
Our experts are ready to help you get your Maine motor vehicle dealer bond. Give us a call at 1 (800) 308-4358 or click the button below to get your free, no obligation quote today!