What is a Maryland Vehicle or Trailer Dealer Bond?

Know why this surety bond matters to your business and how to easily obtain one!

Maryland Vehicle or Trailer Dealer Bond

What is a Vehicle or Trailer Dealer Bond?

Every person who has applied to the Administrator of Motor Vehicles, State of Maryland to become a vehicle or trailer dealer is required to post a surety bond.
The surety bond must be submitted before the license is issued and prior to engaging in the business of buying, selling, or exchanging vehicles. This includes a person who sells or offers to sell five or more vehicles during a 12-month period.
As part of the bond’s condition, the vehicle or trailer dealer must perform his or her duties in accordance with the Transportation Article of the Annotated Code of Maryland and regulations set forth by the Administrator of Motor Vehicles.
The Obligee will have the right to take action against the bond if the licensee fails to comply with the aforementioned laws and rules.

What is the Vehicle or Trailer Dealer Bond?

New Motor Vehicle Dealer – the bond amount will be based on the previous year’s sales.

New Motor Vehicle SalesBond Amount
1 to 500 vehicles$50,000
501 to 1,000 vehicles75,000
1,001 to 2,500 vehicles100,000
More than 2,500 vehicles300,000

Used Motor Vehicle Dealer – this includes wholesalers and dealers that sells trailers or semitrailers over 15 feet in length.

Used Motor Vehicle SalesBond Amount
1 to 250 vehicles$15,000
251 to 500 vehicles25,000
501 to 1,000 vehicles35,000
1,001 to 2,500 vehicles50,000
More than 2,500 vehicles150,000

$5,000 – Dealers who only sells trailers or semitrailers with a length of 15 feet or less or boat trailers of any size.

If you have an excellent credit score, you will be eligible to pay for a low bond premium, or just 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!

How can I get a Vehicle or Trailer Dealer Bond?

  1. You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
  2. After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
    • Your financial capability
    • Your business or job performance history
    • Your credit score
  3. Your surety bond will be issued and sent to you!

What are the surety bond conditions?

GET YOUR FREE SURETY BOND QUOTE TODAY!

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