Maine Auto Dealer Bond: Amount Set by Your Sales Volume
In Maine, a dealer other than an equipment and light trailer dealer files and maintains a surety bond with the Secretary of State, sized by the prior year's sales, or by projected sales if you are a new licensee. The bond runs from $25,000 for up to 50 sales to $100,000 at 151 sales and over.
- Who requires it: Maine Secretary of State; 29-A M.R.S. §901(4).
- Timing: We submit complete applications to the carrier promptly; most quotes within one business day.
Official Maine Requirements
"Initial licensees shall file a bond based on projected sales."Maine Legislature, 29-A M.R.S. §901 • View Official Requirements →
How much the bond is, by sales volume
Maine does not use one flat amount. A dealer other than an equipment and light trailer dealer files with the Secretary of State and maintains a surety bond based on the prior year's sales. The four tiers set in the statute are below.
| Prior year's sales | Bond amount |
|---|---|
| 0 to 50 | $25,000 |
| 51 to 100 | $50,000 |
| 101 to 150 | $75,000 |
| 151 and over | $100,000 |
Moving from 50 to 51 sales takes the bond from $25,000 to $50,000.
If you are a new dealer, and the yearly review
If you are an initial licensee, your bond is based on projected sales. A person beginning in the business as a licensed dealer is subject to review after initial bonding, depending on volume. Every licensee is reviewed annually by the Secretary of State to determine compliance with the correct bond amount. Failure to maintain the bond is grounds for immediate suspension of the dealer license.
Who does not post this bond, and the online dealer pilot
An equipment and light trailer dealer is not required to file this bond.
Maine also runs a 2-year pilot program to license and regulate online used car dealers. An online used car dealer files with the Secretary of State and maintains a surety bond of $350,000. That license carries a $500 annual fee and requires proof of a minimum of 100 annual motor vehicle sales. The section creating it is effective until 12/31/28.
How a claim works
Any person with a claim against the bond must file the claim within 3 years from the date of sale. For the specific losses a claim can cover, confirm it with the Maine Secretary of State.
The license, your place of business, and fees
You need a dealer license if you buy vehicles for resale, sell more than 5 vehicles in any 12-month period, or advertise or display 3 or more vehicles for sale within a 30-day period on premises you control. Vehicles you have owned and registered for at least 6 months are not counted toward that. Dealing without a license is a Class E crime, though a dealer licensed in another jurisdiction who sells vehicles only to licensed dealers in Maine is exempt.
Your established place of business needs an improved display area of not less than 3,500 square feet in or immediately adjoining it, and an exterior sign, permanently affixed to the land or building, that indicates the business name. You also need a repair department for repair of vehicles and at least one mechanic, who may be the owner, who has a thorough knowledge of the vehicles being handled.
You apply by filing an application with the Secretary of State, in the form prescribed by the Secretary of State, and paying the fee. If you are a new or used vehicle dealer, your application includes a certificate by a state police officer or a representative of the Secretary of State that you have an established place of business at each business location in the State.
The fee for an initial application is $150. The annual fee is $150 for a vehicle dealer, $50 for a motorcycle dealer, and $50 for a light trailer dealer. An annex license is $150 a year and a secondary location license is $100 a year. An annual license expires on the last day of the month, one year from issuance.
Steps
- Check if you need a license. You need one if you buy vehicles for resale, sell more than 5 in any 12-month period, or advertise or display 3 or more for sale within 30 days on premises you control.
- Set up your place of business. Have an improved display area of not less than 3,500 square feet, an exterior sign permanently affixed to the land or building, a repair department, and at least one mechanic.
- Size your bond. A new licensee is bonded on projected sales; an existing dealer is bonded on the prior year's sales, from $25,000 to $100,000.
- File your application and fee. File with the Secretary of State and pay the $150 initial application fee. Confirm the bond form and how to file it with the Maine Secretary of State.
- Clear the place-of-business certificate. If you are a new or used vehicle dealer, expect a certificate from a state police officer or a representative of the Secretary of State confirming your established place of business at each location.
- Renew each year. Your license expires the last day of the month one year from issuance, and every licensee is reviewed annually for the correct bond amount.
Frequently asked questions
How much is the Maine auto dealer bond?
It is set by the prior year's sales: $25,000 for 0 to 50 sales, $50,000 for 51 to 100, $75,000 for 101 to 150, and $100,000 for 151 and over.
I am a first-time dealer with no sales yet — what is my bond?
An initial licensee files a bond based on projected sales. Your bond is reviewed after initial bonding, depending on volume.
Is any dealer exempt from the bond?
Yes. A dealer other than an equipment and light trailer dealer must file the bond, so an equipment and light trailer dealer does not file it.
What happens if my bond lapses?
Failure to maintain the bond is grounds for immediate suspension of the dealer license.
How long does someone have to file a claim?
A claim against the bond must be filed within 3 years from the date of sale.
Is there a different bond for online used car dealers?
Under a 2-year pilot in effect until 12/31/28, an online used car dealer maintains a surety bond of $350,000, pays a $500 annual fee, and shows proof of at least 100 annual sales.
What will the bond cost me?
What you pay is a share of the bond amount, set by the surety from your credit and finances.
When does my dealer license expire?
An annual license expires on the last day of the month, one year from issuance.
How do I get a Maine auto dealer bond?
Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.
What happens after I apply?
We submit complete applications to the carrier promptly; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.
Sources
- Maine Legislature, 29-A M.R.S. §901 (dealer bond)
- Maine Legislature, 29-A M.R.S. §851 (definitions)
- Maine Legislature, 29-A M.R.S. §852 (fees)
- Maine Legislature, 29-A M.R.S. §951 (license required; expiry)
- Maine Legislature, 29-A M.R.S. §952 (facilities)
- Maine Legislature, 29-A M.R.S. §957 (annex and secondary locations)
- Maine Legislature, 29-A M.R.S. §958 (online used car dealer pilot)
Comparing nearby states? See our New Hampshire, Massachusetts, and New York dealer bond pages.
Maine dealers: vehicles without a title
Trade-ins and auction units sometimes arrive with a missing or defective title. Read how a bonded title works on the Maine bonded title page, or compare title bond rules across states.
Four situations dealers run into have their own guides: salvage title rules for dealers, an out-of-state seller who sent no title, bonded title for a trailer and fixing a VIN problem before resale.
Stocking more than cars? See classic and antique car titles, a unit left on your lot and titling a coach that arrives without paperwork.
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All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
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