Maine Auto Dealer Bond— $25K to $100K by Annual Volume
Maine is one of the few states where your dealer surety bond amount scales with how many vehicles you actually sell. New dealers start at the $25,000 tier, and the Bureau of Motor Vehicles adjusts your bond upward as your volume grows — topping out at $100,000 for dealers moving 151+ vehicles per year.
Filed on Form MVD-390 with the Secretary of State under Title 29-A M.R.S.A. For a detailed breakdown of how credit affects your rate across all tiers, see our surety bond cost guide.
Get Your Auto Dealer Bond Quote
Same-day DMV approval available • All dealer types
Pay only after your bond is issued • No obligation • 2 minutes
Four Volume Tiers: How Maine Scales Your Bond with Sales
Unlike states that set bond amounts by dealer type (new vs. used), Maine bases your bond purely on annual vehicle count. The Bureau of Motor Vehicles reviews your volume through title transactions at each renewal.
Maine Dealer Bond Tiers — Title 29-A M.R.S.A. (Form MVD-390)
Bond amount determined by prior-year annual sales volume
| Annual Volume | Bond Amount | Estimated Premium | Typical Dealer Profile |
|---|---|---|---|
| 1-50 vehicles | $25,000 | $250-$2,500/yr | Small independent lots, new dealers |
| 51-100 vehicles | $50,000 | $500-$5,000/yr | Mid-volume dealerships |
| 101-150 vehicles | $75,000 | $750-$7,500/yr | Larger independent & franchise |
| 151+ vehicles | $100,000 | $1,000-$10,000/yr | High-volume franchise & multi-line |
New dealers with no sales history start at the $25,000 tier. Premium based on 1-10% of bond amount.
Maine Secretary of State, Bureau of Motor Vehicles — Title 29-A M.R.S.A.
How tiers are determined: The Bureau of Motor Vehicles tracks your annual sales through title transactions. At each license renewal, your bond amount is adjusted to match your actual sales volume from the previous year. If you exceed your current tier mid-year, you may need to increase your bond before the next renewal. Use our bond cost calculator to estimate your premium at any tier.
Opening a Maine Dealership? You Start at $25,000
If you are applying for your first Maine dealer license with no prior sales history, the Bureau of Motor Vehicles places you in the lowest tier: $25,000. This is true regardless of whether you plan to sell new or used vehicles, wholesale or retail. Your initial bond amount is based on zero sales history, not projected volume.
This makes Maine one of the more accessible states for new dealers from a bonding perspective. A $25,000 bond with good credit costs as little as $250-$500 per year — compared to states like Connecticut's flat $60,000 or Iowa's $75,000.
The trade-off is that your bond requirement will increase as your business grows. If you sell 51 vehicles in your first full year, your renewal bond jumps to $50,000. Plan ahead by budgeting for the potential tier increase so it does not catch you off guard at renewal time.
How Maine Tracks Your Volume and Triggers Tier Changes
The Bureau of Motor Vehicles tracks your annual sales through title transfer records — every vehicle you sell generates a title transaction that gets logged in the state system. At each license renewal cycle, your actual sales volume is compared against the tier thresholds.
The system works both ways. If you were at the $50,000 tier last year and your sales dropped to 40 vehicles, you can request a reduction back to $25,000 at renewal. Conversely, if your volume climbed from 90 to 110, you will need to upgrade to $75,000.
Each threshold crossing directly affects your premium. The jump from 50 to 51 vehicles doubles your bond requirement from $25,000 to $50,000. For dealers approaching a threshold, it is worth evaluating whether the additional sales justify the higher bonding cost.
Official Maine Requirements
"A motor vehicle dealer shall furnish a surety bond pursuant to Title 29-A M.R.S.A. The bond shall protect the Secretary of State and any individual, firm, or operation that suffers a loss due to a dealership's regulatory noncompliance."Maine Secretary of State, Bureau of Motor Vehicles • Title 29-A M.R.S.A.
Bureau of Motor Vehicles: Complete Licensing Requirements
Everything you need to file with the Maine Secretary of State for a motor vehicle dealer license under Title 29-A. We specialize in bonds across all 50 states. Maine contractors also need a Maine contractor license bond.
Required Documents
- Complete Maine dealer license application with the Bureau of Motor Vehicles
- Surety bond on Form MVD-390 ($25,000-$100,000 based on annual sales volume)
- Garage liability insurance meeting Maine minimum requirements
- Established place of business with permanent dealer sign
- Valid Maine sales tax registration
- Business entity registration with Maine Secretary of State
- Background check for all owners, partners, and corporate officers
- Facility inspection and local zoning compliance
- Designated display area for vehicle inventory
- Compliance with Title 29-A M.R.S.A. dealer requirements
Bond Filing Details
All Maine Dealer Categories Use the Same Volume Tiers
Your bond amount is set by sales volume, not by dealer type. Learn how to get a surety bond and not sure how bonds differ from insurance?
New Vehicle Dealer
Franchise dealers with manufacturer agreement
Used Vehicle Dealer
Independent used car dealerships
Wholesale Dealer
Dealer-to-dealer transactions only
Equipment Dealer
Heavy equipment and commercial vehicles
From Application to Dealer Plates: Maine's Licensing Process
Step-by-step through the Bureau of Motor Vehicles. See our auto dealer bond cost guide for pricing at every tier.
Determine Your Tier & Get Bonded
New dealers start at the $25,000 tier. If you have prior sales history, determine your tier based on previous year volume. Apply online for same-day approval on Form MVD-390.
Prepare Application Package
Complete the dealer license application, gather insurance certificates, business registration, zoning approval, and background check documentation. Ensure your facility meets Maine requirements.
Submit to Bureau of Motor Vehicles
File your complete application with the Maine Secretary of State, Bureau of Motor Vehicles. Pass the facility inspection. Allow 3-5 weeks for processing and approval.
Maine Dealer Bond Questions: Volume Tiers and MVD-390
State-specific questions about Maine's volume-based bond system. Neighboring New Hampshire uses a flat $25,000.
How does Maine determine which bond tier a dealer falls into?
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. The Bureau of Motor Vehicles reviews your tier annually through title transaction records.
What is Maine Form MVD-390 and who fills it out?
MVD-390 is the official "Surety Bond for Motor Vehicle Dealer" form issued by the Maine Secretary of State, Bureau of Motor Vehicles. Your surety company completes this form — not you. It specifies the bond amount, the dealer name, and the effective period. The bond runs concurrently with your dealer license and terminates at 11:59 PM on the last day of your license period. The form was last revised in September 2021.
What triggers a tier change at renewal in Maine?
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.
How much does a Maine dealer bond cost at each tier?
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%.
Do all Maine dealer categories use the same volume-based bond system?
Yes. 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. Each license type uses the same MVD-390 bond form, with the amount determined by your annual sales volume rather than your dealer category.
What does the MVD-390 bond protect against?
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.
What happens if I let my Maine dealer bond lapse?
Your MVD-390 bond runs concurrently with your dealer license and must be renewed before it expires. The Bureau of Motor Vehicles will suspend your license immediately if your bond lapses. 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.
Dealer Bonds in Neighboring New England States
Compare Maine's volume tiers with flat-amount neighbors. Check your surety bond cost based on credit.
Official Maine BMV Resources
New Dealer? Start at $25,000 — We Handle Form MVD-390
All 4 volume tiers available. Bond adjusts with your business as you grow.
Get Your Auto Dealer Bond Quote
Same-day DMV approval available • All dealer types
Pay only after your bond is issued • No obligation • 2 minutes