Maryland Auto Dealer Bond Overview
- Purpose: To protect consumers from fraud or misrepresentation by dealers
- Who Needs It: All new, used, wholesale and emergency vehicle dealers in Maryland
- Regulating Body: The Maryland Motor Vehicle Administration
- Bond Amount: $15,000–$300,000, based on license type and sales volume
- Minimum Price: $150, or 1% of the bond amount
What Is a Maryland Auto Dealer Bond?
A Maryland auto dealer bond ensures dealers follow state law when buying, selling and transferring vehicles.
The Maryland Motor Vehicle Administration (MVA) requires all new, used and wholesale vehicle dealers to file a surety bond for state licensing.
Bond Coverage Requirements for Maryland Vehicle Dealers
Your required bond amount will vary based on your license type and the number of vehicles sold during the previous year. If you’re a new applicant, you must estimate your projected sales.
| License Type | Bond Amount |
|---|---|
| New Vehicle Dealer | $50,000–$300,000 |
| Used Vehicle Dealer | $15,000–$150,000 |
| Wholesale Dealer | $15,000–$150,000 |
| New Emergency Vehicle Dealer | $50,000–$300,000 |
| Used Emergency Vehicle Dealer | $15,000–$150,000 |
How Much Do Auto Dealer Bonds Cost in Maryland?
Maryland auto dealer bond premiums vary based on your license type and credit score:
- Used motor vehicle dealer bonds start at $150
- Wholesale motor vehicle dealer bonds start at $150
- Used emergency vehicle dealer bonds start at $150
- New motor vehicle dealer bonds start at $500
- New emergency vehicle dealer bonds start at $500
Qualified applicants often pay just 1–3% of the bond amount. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Maryland Motor Vehicle Dealer Bond Work?
A Maryland motor vehicle dealer bond is a legal contract between you, the state and the surety.
- Principal: The auto dealer purchasing the bond
- Obligee: The Maryland Motor Vehicle Administration requiring the bond
- Surety: The issuing surety provider
This bond is a financial guarantee that you’ll uphold the Maryland Transportation Article, including:
- Keeping accurate records
- Properly processing vehicle titles and registrations
- Complying with MVA inspections and audits
If you break these terms, harmed parties can file claims against your bond. While the surety will pay valid claims, you must refund the surety up to the full bond amount.
This page explains the Maryland auto dealer bond required to sell vehicles in the state. If you sell motorcycles or trailers, you need a separate Maryland motorcycle or trailer dealer bond. If you sell boats, you need a separate Maryland boat dealer bond.
How Do I Get an Auto Dealer Bond in Maryland?
Getting your Maryland auto dealer bond is easy! Just follow these quick steps:
- Fill out the quote request form
- Receive your personalized price after a soft credit check
- Pay for your bond online or over the phone
- Select a shipping method to receive your official bond form
Once you have your physical bond, be sure to sign and file it with the MVA.
In a rush? We offer overnight, two-day and three-day shipping. Rates are $20–$40.
Can I Get Bonded With Bad Credit
You may still be able to get bonded with bad credit, but it’ll likely affect your premium rate. View our bad credit surety bonds guide to see how credit can impact your cost.
How Do I Renew My Dealer Bond?
Maryland vehicle dealer bonds expire annually on the date issued. We’ll send you reminders starting 90 days before expiration. Once you pay the attached invoice, we’ll extend your bond for another term.
Can I Make Changes to My Bond?
Yes, you can typically make minor changes to your bond by contacting your surety company. Email [email protected] with the new information, and we’ll update your form if possible.
How to Become an Auto Dealer in Maryland
All types of auto dealers must complete the same application process with the MVA:
- Establish your dealership and register with the state
- Get a surety bond in the required amount
- If you have employees, purchase workers’ compensation insurance
- Complete a criminal background check
- Submit all materials through the MVA Business Portal
- Schedule a site inspection with the MVA Compliance Inspector
- Attend a dealer orientation after receiving registration information
Once approved, the MVA will send you further instructions and an invoice for all fees. You’ll manage any license updates and renewals through the Business Portal.
How Many Cars Can I Sell Without a License in Maryland?
You cannot sell any new vehicles without a dealer license. If you're selling your own used vehicles, you can generally sell up to three in a 12-month period.
Can I Start a Dealership Without a Lot?
No, all new and used retail dealers in Maryland must have a physical display lot. While wholesale dealers don’t need a traditional lot, you still need a permanent, approved business location.
