Maine Auto Dealer Bond$25,000 - $100,000 Volume-Based

Maine ties your bond amount to the number of vehicles you sold in the previous year. Dealers selling 1-50 vehicles need a $25,000 bond. Dealers selling 51-100 vehicles need $50,000. Dealers selling 101-150 vehicles need $75,000. Dealers selling 151 or more need $100,000. New dealers with no sales history typically start at the $25,000 tier. Your bond amount is adjusted at renewal based on your actual sales volume as reported to the Bureau of Motor Vehicles.

MVD-390 is the official "Surety Bond for Motor Vehicle Dealer" form issued by the Maine Secretary of State, Bureau of Motor Vehicles. This form must be completed by your surety company and filed with your dealer license application. The bond runs concurrently with your dealer license period and terminates at 11:59 PM on the last day of your license period. The form was last revised in September 2021.

Costs depend on your tier. For the $25,000 bond (1-50 vehicles), expect $250-$2,500 annually. The $50,000 bond (51-100 vehicles) costs $500-$5,000. The $75,000 bond costs $750-$7,500. The $100,000 bond costs $1,000-$10,000. Your exact rate within these ranges depends on credit score, financial strength, and claims history. Excellent credit (750+) gets the lowest rates at 1-2%.

If your annual sales volume crosses a tier threshold, your bond amount must be adjusted at the next renewal. For example, if you sold 45 vehicles last year ($25,000 tier) but sold 60 this year, you need to upgrade to the $50,000 tier at renewal. The Bureau of Motor Vehicles tracks your sales through title transactions and will notify you of any required bond increases.

The MVD-390 bond protects the Maine Secretary of State and any individual, firm, or organization that suffers a loss due to a dealership's regulatory noncompliance. This includes failure to deliver titles, misrepresentation of vehicle condition, odometer fraud, failure to disclose damage history, and other violations of Title 29-A. The surety pays valid claims up to the full bond amount.

The obligee is the Maine Secretary of State, acting through the Bureau of Motor Vehicles. The bond is filed with the Bureau as part of your dealer license application. Claims against the bond can be made by the Secretary of State or by any consumer who suffers a monetary loss due to the dealer's failure to comply with Maine motor vehicle dealer laws.

Maine issues dealer licenses for new vehicle dealers (franchise), used vehicle dealers, wholesale dealers, and equipment dealers. The volume-based bond tier system applies to all categories. Mobile home dealers have separate requirements. Each license type has the same MVD-390 bond requirement, with the amount determined by your annual sales volume rather than your dealer category.

Your MVD-390 bond runs concurrently with your dealer license and must be renewed before it expires. We send reminders 60 days before expiration. At renewal, your bond amount may change if your sales volume moved to a different tier. Most renewals are approved within 1 business day. Never let your bond lapse -- the Bureau of Motor Vehicles will suspend your license immediately.