What is a Maryland Vehicle or Trailer Dealer Bond?
Know why this surety bond matters to your business and how to easily obtain one!
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 Sales||Bond Amount|
|1 to 500 vehicles||$50,000|
|501 to 1,000 vehicles||75,000|
|1,001 to 2,500 vehicles||100,000|
|More than 2,500 vehicles||300,000|
Used Motor Vehicle Dealer – this includes wholesalers and dealers that sells trailers or semitrailers over 15 feet in length.
|Used Motor Vehicle Sales||Bond Amount|
|1 to 250 vehicles||$15,000|
|251 to 500 vehicles||25,000|
|501 to 1,000 vehicles||35,000|
|1,001 to 2,500 vehicles||50,000|
|More than 2,500 vehicles||150,000|
$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?
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- 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
What are the surety bond conditions?
- The surety bond should be issued by a Surety who is authorized to conduct business in the State of Maryland
- The surety bond should be made payable to the Administrator of Motor Vehicles, State of Maryland
- The licensee is required to follow the provisions of the Transportation Article of the Annotated Code of Maryland as well as the rules and regulations of the Maryland Department of Transportation
- If the licensee commits a violation, the Obligee will be eligible to file a bond claim