Motor Vehicle Dealer or Trailer Dealer - New
Required for new motor vehicle and trailer dealers in Maryland to obtain and maintain their dealer license. Bond amount varies by dealer class from $15,000 to $300,000.
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About This Bond
The Motor Vehicle Dealer or Trailer Dealer - New bond is a surety bond required by the State of Maryland for businesses that sell new motor vehicles or trailers. This bond is mandatory for obtaining and maintaining a motor vehicle dealer license in Maryland.
New motor vehicle dealers and trailer dealers must obtain this bond as part of their licensing requirements. The bond amount varies based on the dealer's classification: Class 3 dealers require bonds ranging from $15,000 to $50,000, while Class 4 dealers require bonds of $75,000 or higher, up to $300,000.
This bond protects the State of Maryland and consumers from financial losses that may result from the dealer's failure to comply with state motor vehicle laws and regulations. It ensures that dealers operate ethically and fulfill their obligations to customers, including proper handling of titles, warranties, and financial transactions.
The bond term is one year and is renewable annually. Dealers must maintain continuous bond coverage to keep their license active and in good standing with the Maryland Motor Vehicle Administration.
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At a glance
Maryland Auto Dealer Bond Key Facts
Governed by Md. Code, Transportation § 15-308 (Dealer’s bond).
The basics
What Is an Auto Dealer Bond in Maryland?
A Maryland auto dealer bond — officially a Surety Bond of Vehicle or Trailer Dealer — is a surety bond you must file with the MDOT Motor Vehicle Administration (MVA) to get or renew a vehicle dealer license. The MVA currently requires a $50,000 bond for new, used, and wholesale vehicle dealers; the amount is set by your license type and projected vehicle volume under Md. Code, Transportation § 15-308.
Good to know - Required to get or renew a Maryland vehicle dealer license under Md. Code, Transportation § 15-308. The MVA sets the amount by license type and projected vehicle volume — it currently requires a $50,000 bond for new, used, and wholesale vehicle dealers. Trailer-only dealers may qualify for a lower statutory amount, so confirm your figure with the MVA before you file.
The bond is a promise that you will run your dealership honestly — that you will follow the Maryland laws that regulate vehicle dealers and will not cheat your customers or the state. The MVA is the obligee, the party the bond answers to.
If you break those laws and cause someone a financial loss, that person can file a claim against your bond, up to the full bond amount. The bond protects your customers and the public, not you. If the surety company pays a claim, you must pay the surety back.
One bond covers your primary location and any supplemental locations licensed under the same dealer business license number. The bond must stay active the whole time you are licensed — if it is cancelled, expires, or becomes invalid, the MVA can suspend or revoke your license.
Qualification
What You Need to Qualify for a Maryland 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 Maryland vehicle dealer license with the MDOT Motor Vehicle Administration (MVA) Business Licensing & Compliance Division.
- You know your dealer type — new, used, or wholesale — because it sets your required bond amount (currently $50,000 for each of these types).
- Your bond is written by a surety company authorized to do business in Maryland and runs to the MVA as required by Md. Code, Transportation § 15-308.
- Your bond shows the exact legal name, ownership, and dealership location listed on your dealer license application, and covers your primary location plus any supplemental locations under the same dealer business license number.
- You can keep the bond active with no lapse for the whole time you are licensed.
- You have a permanent, established Maryland place of business that meets MVA requirements and local zoning approval.
- If you do not have a repair facility at your location, you have a contract with a repair facility within 5 miles of your dealership.
- Every owner, partner, or officer can pass the required criminal background check.
Step by step
How to Get an Auto Dealer Bond in Maryland: Step by Step
Confirm your Maryland dealer license type
Decide whether you are licensing as a new, used, or wholesale vehicle dealer. Your type sets your bond amount — currently $50,000 for each of these types. Trailer-only dealers may qualify for a lower amount, so check with the MVA if that is you.
Set up your Maryland place of business
Line up a permanent, established Maryland location that meets MVA requirements and local zoning. Get your Zoning Approval Form (CS-053) signed by the zoning board for your county or city. If your location has no repair facility, get a Repair Facility Contract (CS-125) with a shop within 5 miles.
Zoning Approval Form (CS-053)Complete your dealer license application
Fill out the Application for Vehicle Dealer’s License (CS-042) in full and gather the packet items — your zoning approval, Criminal Background Check Authorization (CS-011) for each owner or officer, and (for new dealers) franchise approval, a new vehicle certification, and an insurance information form.
Application for Vehicle Dealer’s License (CS-042)Get your Maryland dealer bond
Buy your bond and we handle the form. We issue your Maryland Vehicle Dealer Bond on the official Surety Bond of Vehicle or Trailer Dealer form (CS-067A) for the amount your license type requires — currently $50,000 — and send it to you to file with your packet. There is no bond form for you to download or sign.
File your packet and schedule your inspection
Submit your completed CS-042, your issued bond, your supporting documents, and the license fee to the MVA Business Licensing & Compliance Division. An MVA compliance inspector will then contact you to schedule the required on-site inspection of your dealership.
Keep your bond active
Renew your bond before it expires so your coverage never lapses — your Maryland dealer license depends on the bond staying on file. Submit your license renewal documents at least 15 working days before your license expires.
Paperwork
Maryland Dealer Bond Forms & Documents
The official dealer bond form — we issue this for you on the official form for the required amount and send it to you to file with your packet. You do not download or complete it.
The dealer license application and instructions you complete and submit.
View formSigned by your county or city zoning board to confirm your location is approved for a dealership. You obtain and submit this.
Required for each applicant, owner, or officer. You complete and submit this.
Required only if your location has no repair facility — a contract with a shop within 5 miles. You obtain and submit this.
The full MVA dealer packet with every form and instruction. All business forms are also on the MVA business forms page.
View formYou'll also need
Cost
How Maryland Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Maryland currently sets the bond at $50,000 for new, used, and wholesale dealers — that figure is the coverage, the most a claim can collect, not what you pay.
You pay a premium, which is a small percentage of the bond amount. Underwriting sets your rate, mostly from your personal credit. The premium is separate from the MVA dealer license fee and any plate or inspection costs.
Worked example
On a $50,000 Maryland dealer bond, you do not pay $50,000 — you pay a premium on it, often a small percentage of the amount for well-qualified applicants. Start a quote to see your exact rate.
Filing
Filing Information
MDOT Motor Vehicle Administration (MVA), Business Licensing & Compliance Division
Filing notes
Maryland names the MVA as the obligee — the party the bond answers to — and the bond protects the public. We issue your Maryland Vehicle Dealer Bond on the official Surety Bond of Vehicle or Trailer Dealer form (CS-067A) for the amount your license type requires, currently $50,000 for new, used, and wholesale dealers.
The bond must be written by a surety company authorized to do business in Maryland and must show the exact legal name, ownership, and dealership location on your application. One bond covers your primary location and any supplemental locations licensed under the same dealer business license number.
File the original bond with your dealer license application packet through the MVA Business Licensing & Compliance Division. In most cases we prepare the issued bond and send it to you to include with your packet.
Keep your coverage active with no lapse. If your bond is cancelled, expires, or becomes invalid, the MVA may suspend or revoke your dealer license, so renew on time and maintain continuous coverage the whole time you are licensed.
FAQ
Maryland Auto Dealer Bond FAQ
Yes. A Maryland vehicle dealer license requires a surety bond filed with the MVA under Md. Code, Transportation § 15-308. The amount is set by your license type — currently $50,000 for new, used, and wholesale dealers.
The MVA currently requires a $50,000 bond for new, used, and wholesale vehicle dealers. New dealer amounts can be based on projected vehicle volume, and trailer-only dealers may qualify for a lower statutory amount, so confirm your figure with the MVA.
It can. Maryland sets the amount by license type and projected vehicle volume under § 15-308. New, used, and wholesale dealers currently file $50,000; trailer-only dealers may qualify for less.
It protects your customers and the public, with the MVA as the obligee. If a dealer breaks Maryland’s vehicle dealer laws and causes a financial loss, the harmed person can file a claim against the bond, up to the full bond amount.
You pay a premium, not the full bond amount. The premium is a small percentage of the bond, based mainly on your credit. Start a quote to see your rate.
It must stay active the whole time you are licensed. If the bond is cancelled, expires, or becomes invalid, the MVA can suspend or revoke your license, so keep continuous coverage and renew before it expires.
Besides the bond, you need a permanent Maryland place of business with local zoning approval, a passed on-site MVA inspection, a criminal background check for each owner or officer, and — if your location has no repair shop — a repair facility contract within 5 miles.
The MDOT Motor Vehicle Administration (MVA), Business Licensing & Compliance Division. You can reach it at (410) 768-7000 or MVABLDISD@mdot.maryland.gov.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with MDOT Motor Vehicle Administration (MVA), Business Licensing & Compliance Division before you file. This page is informational and not legal advice.
FAQ
Maryland Auto Dealer Bond Questions
The cost of a Maryland 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 Maryland 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 Maryland 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.
