Surety Bond for Motor Vehicle Dealer
Required for used motor vehicle dealers in Maine to obtain and maintain their dealer license. Protects consumers from fraudulent practices and ensures compliance with state regulations.
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About This Bond
The Surety Bond for Motor Vehicle Dealer is a license bond required by the State of Maine for businesses engaged in the sale of used motor vehicles. This bond ensures that dealers operate in accordance with Maine's motor vehicle dealer laws and regulations.
Used motor vehicle dealers in Maine must obtain this bond as part of their licensing requirements. The bond serves as a financial guarantee that the dealer will conduct business ethically and comply with all applicable state laws governing motor vehicle sales.
The bond protects the State of Maine and consumers who purchase vehicles from licensed dealers. If a dealer engages in fraudulent practices, violates state regulations, or fails to fulfill their obligations to customers, affected parties can file claims against the bond for financial compensation up to the bond amount.
Bond amounts range from $25,000 to $100,000 depending on the dealer's business volume and risk profile. The bond has a one-year term and is renewable annually. Dealers must maintain continuous bond coverage to keep their license active and in good standing with the state.
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At a glance
Maine Auto Dealer Bond Key Facts
Governed by 29-A M.R.S. §901(4); §903.
The basics
What Is an Auto Dealer Bond in Maine?
Yes — Maine requires an auto dealer bond. To get or keep a Maine motor vehicle dealer license, you must file and maintain a surety bond with the Bureau of Motor Vehicles (29-A M.R.S. §901(4)). Maine files it on form MVD-390, and the amount is set by your yearly sales: $25,000, $50,000, $75,000, or $100,000. Equipment dealers and light trailer dealers are the exceptions — they do not post this bond.
Good to know - Required for Maine motor vehicle dealers (for example, new-car, used-car, and motorcycle dealers). The amount is tiered to your prior-year sales: $25,000 for 0–50 sales, $50,000 for 51–100, $75,000 for 101–150, and $100,000 for 151 or more. New dealers bond on projected sales. Equipment dealers and light trailer dealers are exempt from the bond.
A surety bond is a promise, backed by a surety company, that you will follow Maine’s dealer laws. If you break them and someone is harmed — for example, a buyer or the state — they can file a claim against your bond up to its full amount.
The bond protects the public and the state, not you. If a claim is paid, you must repay the surety company. Maine sets your amount by how many vehicles you sold the year before, so the more you sell, the higher your required bond.
A new dealer bonds on projected sales, and the Bureau of Motor Vehicles reviews every dealer’s bond amount each year. Your bond must stay active the whole time you hold your dealer license, or the state can suspend it (29-A M.R.S. §903).
Qualification
What You Need to Qualify for a Maine Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for, or renewing, a Maine motor vehicle dealer license (such as a new-car, used-car, or motorcycle dealer license) with the Bureau of Motor Vehicles.
- You will post a surety bond in the amount Maine sets for your sales tier — $25,000, $50,000, $75,000, or $100,000 — unless you are an equipment or light trailer dealer, who are exempt.
- Your bond is written by a surety company authorized to do business in Maine.
- As a new applicant, you (or an employee) have reviewed the dealer training material and signed the affidavit of completion (Loaner and Transporter applicants are exempt).
- You have an established place of business that meets Maine’s dealer rules.
- You can keep coverage continuous and renew each year before your dealer license period ends, since Maine reviews your required bond amount every year.
Step by step
How to Get an Auto Dealer Bond in Maine: Step by Step
Confirm your dealer license type and bond amount
Decide which dealer license you need — new-car, used-car, motorcycle, and so on. Then find your bond amount: Maine ties it to your prior-year sales — $25,000 for 0–50 sales, $50,000 for 51–100, $75,000 for 101–150, and $100,000 for 151 or more. New dealers bond on projected sales. Equipment and light trailer dealers do not post this bond.
Complete Maine’s dealer training
New applicants must review the Bureau of Motor Vehicles dealer training material, then sign the affidavit of completion before a dealer license is issued. Loaner and Transporter applicants are exempt from this rule.
Buy your Maine dealer bond
Buy your bond and we handle the paperwork. We issue your surety bond on the official Maine form (MVD-390) in the amount for your sales tier and provide it for filing with your dealer packet — there is no bond form for you to download, complete, or sign.
Complete your Application for a Dealer License
Fill out the Application for a Dealer License (MVD-350) and gather the documents listed in the Complete Dealer Packet. The packet walks you through every item, from your place of business to your fees.
Application for a Dealer License (MVD-350)File your application, fees, and bond
Mail your completed MVD-350, your MVD-390 surety bond, your supporting documents, and your fees (a non-refundable filing fee plus license and plate fees) to the Bureau of Motor Vehicles, Dealer Licensing in Augusta. The Bureau then reviews your application before issuing the license.
Renew each year and keep your bond current
Your Maine dealer license and bond run for the license period and end on the last day of that period. Renew on time each year and keep your bond active. Maine re-checks your required bond amount against your prior-year sales, so your amount may change at renewal.
Paperwork
Maine Dealer Bond Forms & Documents
The main application to become a licensed Maine motor vehicle dealer — you complete and submit this.
View formThe full instructions, checklist, fees, and forms for a Maine dealer license.
View formThe official Maine dealer bond form — we issue and file this for you; you do not fill it out yourself.
View formYou'll also need
Cost
How Maine Auto Dealer Bond Pricing Works
You do not pay the full bond amount. That figure — $25,000, $50,000, $75,000, or $100,000 — is the coverage, the most a claim can collect. You pay a premium, which is a small percentage of the bond amount.
Your premium is set by underwriting, mostly your personal credit. Well-qualified applicants pay a low rate; higher-risk applicants pay more. The premium is separate from Maine’s filing, license, and plate fees.
Worked example
Maine sets your dealer bond between $25,000 and $100,000 based on your yearly sales. If your bond is $25,000, you do not pay $25,000 — you pay a premium, often a small percentage of the bond amount for well-qualified applicants. Your exact rate depends on underwriting, mainly your credit. Start a quote to see your price.
Filing
Filing Information
Maine Secretary of State, Bureau of Motor Vehicles — Dealer Licensing
Filing notes
Your surety bond (BMV form MVD-390) must be on file with the Bureau of Motor Vehicles, Dealer Licensing before the Secretary of State will issue or renew your dealer license — a dealer license cannot be issued without it (29-A M.R.S. §901(4)).
The bond runs concurrently with your dealer license and ends at 11:59 p.m. on the last day of your license period. Maine reviews your required bond amount every year against your prior-year sales, so the amount can rise as you sell more vehicles.
We issue your bond on the official Maine form (MVD-390) and provide it for filing with your dealer packet — there is no bond form for you to complete or sign. Keep coverage continuous and renew on time so your license does not lapse.
FAQ
Maine Auto Dealer Bond FAQ
Yes. A Maine motor vehicle dealer must file and maintain a surety bond to hold a dealer license (29-A M.R.S. §901(4)). Equipment dealers and light trailer dealers are the exceptions and do not post this bond.
It is tiered to your prior-year sales: $25,000 for 0–50 sales, $50,000 for 51–100, $75,000 for 101–150, and $100,000 for 151 or more. New dealers bond on projected sales, and Maine reviews the amount every year.
The "Surety Bond for Motor Vehicle Dealer" (form MVD-390). We issue this bond for you and provide it for filing — there is no bond form for you to complete.
You pay a premium, not the full bond amount. The premium is a small percentage of your bond amount, based mainly on your credit. Start a quote to see your rate.
Your bond runs concurrently with your dealer license and ends at 11:59 p.m. on the last day of the license period. You renew it each year, and Maine re-checks the required amount against your prior-year sales.
Yes. Your surety bond must be on file with BMV Dealer Licensing as part of your application before the Secretary of State issues your dealer license.
Failing to maintain your surety bond is grounds for the Secretary of State to deny, suspend, revoke, or modify your dealer license (29-A M.R.S. §903). Keep coverage continuous and renew on time.
The Maine Secretary of State, Bureau of Motor Vehicles, Dealer Licensing, in Augusta. You can reach them at (207) 624-9000, ext. 52143, or DealerLicensing.BMV@Maine.gov.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with Maine Secretary of State, Bureau of Motor Vehicles — Dealer Licensing before you file. This page is informational and not legal advice.
FAQ
Maine Auto Dealer Bond Questions
The cost of a Maine auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Maine auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Maine license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
