Last updated: October 25, 2026|General Maryland auto dealer bond information — confirm current requirements with the licensing authority.

Maryland Auto Dealer Bond and Dealer License

A Maryland auto dealer bond is part of getting your car dealer license in MD through the Motor Vehicle Administration (MVA). For a corporation, the license is issued to three of its officers as individuals (at least one for a close corporation), and your bond amount follows your sales volume.

Quick answer

The bond amount follows your dealer type and sales volume, from $5,000 for small or boat trailers up to $300,000 for high-volume new-vehicle dealers, with minimums of $50,000 for new-vehicle applicants and $15,000 for used applicants.

Who requires it: Maryland Department of Transportation, Motor Vehicle Administration (MVA); Transportation Article §15-308.
Timing: We submit complete applications to the carrier promptly; most quotes within one business day.

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Official Maryland Requirements

"Each individual who applies for a license under this section assumes, as an individual, all responsibilities of the dealership"

Maryland Transportation Article §15-303 • View Official Requirements →

How much the Maryland auto dealer bond is — and who it protects

After the MVA notifies you that your application has cleared review, and before it issues the license, you file a surety bond that the MVA approves in form and surety. One bond covers your primary location and all supplemental locations if they are licensed under the same dealer business license number. The amount is set by your dealer type and the number of vehicles sold during the preceding license year.

For a dealer licensed to sell new motor vehicles, the schedule is:

New-vehicle sales (prior year)	Bond amount
1 to 500	$50,000
501 to 1,000	$75,000
1,001 to 2,500	$100,000
Over 2,500	$300,000

For a dealer licensed only in used vehicles (including wholesalers), or in trailers or semitrailers over 15 feet long, the schedule is:

Used / large-trailer sales (prior year)	Bond amount
1 to 250	$15,000
251 to 500	$25,000
501 to 1,000	$35,000
1,001 to 2,500	$50,000
Over 2,500	$150,000

For a dealer licensed only in trailers or semitrailers 15 feet or less, or only in boat trailers of any size, the bond is $5,000.

If you are a new applicant, the MVA bases the amount on your estimated sales for the first year the license is in effect. That amount may not be less than $50,000 for a new-vehicle license, or less than $15,000 for a used-vehicle or large-trailer license. If you seek a license for a location that a licensed dealer operated before, the MVA may base the bond on the volume of sales at that location in a preceding year. The statute sizes the bond on the preceding license year, while the MVA's own page describes it as based on vehicles projected to be sold and the packet says vehicles sold or projected to be sold, so confirm your required amount with the MVA for your situation.

The bond runs to the Administrator of Motor Vehicles of the State of Maryland. It is for the use and benefit of the Administration and the public who may suffer or sustain any loss by reason of a dealer's violation of Titles 12 through 15, 17, and 23 of the Transportation Article.

Who can claim on the bond

Any person who suffers loss because of a dealer's violation of those laws may claim against the bond, alongside the Administration. The penalty of the bond is not cumulative from year to year, and the surety's total liability cannot exceed the bond sum regardless of how many license periods the bond is in force. The bond must be secured from a bonding company licensed to do business in Maryland. The bonding company must give the MVA at least 45 days' notice, by registered or certified mail, before cancelling the bond. The bond runs concurrently with the license period and continues, until cancelled, regardless of the number of renewals. What you pay is a share of the bond amount, set by the surety from your credit and finances.

The license is issued to people, not the company

A Maryland dealer license may not be issued to a partnership or corporation as such. If the applicant is a corporation, the license is applied for by and issued to three officers authorized to act for it, or at least one officer for a close corporation. Each individual who applies assumes, as an individual, all responsibilities of the dealership and is subject to all conditions, restrictions, and penalties imposed on licensed dealers. The bond must be in the full name of the dealership, including any trade name, and must reflect the full names of all officers, partners, or owners exactly as shown on the application. The bond form (CS-067A) has signature lines for the President/Owner/Partner, Vice President/Partner, and Treasurer/Secretary/Partner, plus a signature of the principal. A license to deal in new vehicles cannot be issued unless the manufacturer or distributor meets its own surety bond requirement under §15-205. Conducting the business of a dealer without a license is a crime, punishable by up to one year of imprisonment or a fine up to $5,000, or both.

License fees

The MVA sets three-year license fees.

License type	Three-year fee
New vehicle dealer	$900.00
Used vehicle dealer	$900.00
Wholesale vehicle dealer	$1,050.00
Trailer dealer	$300.00
Interchangeable tag, new/used/wholesale dealer (each)	$150.00
Interchangeable tag, trailer dealer (each)	$97.50

A salesman's license is $225.00 for three years, whether new or renewal. One gratis salesman's license is issued per dealer license fee paid. Note that the statute refers to an "annual license fee" and "license year," while COMAR and the packet set a three-year license and fee, so confirm the current fees with the MVA.

Renewal, term, and expiry

Under COMAR, a Maryland dealer license is issued for a three-year period. Renewals are staggered, so a proportionately uniform number of licenses renew each month, and your renewal is due on or before the last day of the month stated on your license. The Business Licensing and Compliance Division sends a renewal notice in the Business Portal 60 days before your license expires. You must submit the renewal at least 15 working days before the expiration date. The license is considered suspended if a properly completed renewal is not received by the close of business on the last day of the stated renewal month. Once an account is 30 days past expiration, it is no longer eligible for renewal. You must also report all changes affecting your license to the MVA within 30 days after the change occurs.

Your place of business

For most dealers, the business must be the only or principal business at a fixed location, conducted from a building that is adequate and appropriate for the vehicles you may sell. You must either operate an automotive repair facility or hold a repair contract that the MVA has accepted; if you do not have repair facilities at the location, the packet requires a contract with a facility within 5 miles. The dealership must face, adjoin, and be fully visible from an improved street or highway, be large enough to display at least ten vehicles plus customer parking, meet local zoning, be fully lighted, and post business hours. Zoning is shown on the Zoning Approval Form (CS-053). A current trader's license is issued by the political subdivision of each location, and COMAR requires dealers licensed or renewed after September 30, 2017 to hold a continuing electronic registration and titling (ERT) contract, although the MVA packet lists wholesale dealers as an exception for new licensees, so confirm with the MVA. Only one license for a given vehicle type is permitted at any one location. A home office is allowed only under the wholesale-only rules; retail dealers need a substantial building at a fixed location. Wholesalers may be licensed without meeting some of these location requirements but remain subject to the MVA's location rules.

Steps

Know your dealer type. Maryland licenses new vehicle, used vehicle, wholesale, trailer, motorcycle, and emergency vehicle dealers; a wholesaler may not sell to the public or deal in new vehicles.
Gather your documents. Prepare the Application for Vehicle Dealer's License (CS-042), a criminal background check (CS-011), zoning approval (CS-053), your trader's license, an ERT contract (the packet exempts new wholesale dealers), a repair facility contract (CS-125) if you have no repair facilities on site, a liability insurance certificate if you will request interchangeable dealer plates, and workers' compensation if you have employees.
Apply through the portal. Submit your completed application and supporting documents online through the myMVA Business Portal, including the Business Licensing Orientation Request (CS-303).
Attend orientation. You will be contacted to sign up for the business licensing orientation, held monthly online, which must be completed before a license can be issued.
Pass the site inspection. An MVA Compliance Inspector will contact you to schedule an inspection of your place of business for compliance with state code.
File your bond. After the MVA notifies you that your application has cleared review and before it issues the license, file the Surety Bond of Vehicle or Trailer Dealer (CS-067A) covering your primary and supplemental locations.
Wait for issue before operating. Do not begin operating until all steps are complete and your license is issued.

Frequently asked questions

How do I get an auto dealer license in Maryland?

Apply through the myMVA Business Portal with form CS-042 and your supporting documents, attend the monthly online orientation, pass a site inspection, and file your surety bond before the license is issued.

How much is the car dealer license in MD?

The three-year license fee is $900 for a new or used vehicle dealer and $1,050 for a wholesale dealer, plus $150 for each interchangeable tag.

How large does my dealer license Maryland bond need to be?

It follows your dealer type and sales volume — $50,000 to $300,000 for new-vehicle dealers and $15,000 to $150,000 for used and wholesale dealers — with minimums of $50,000 (new) and $15,000 (used) for new applicants.

Who can make a claim on the bond?

The Administrator of Motor Vehicles and any person who suffers loss because of a dealer's violation of Titles 12 through 15, 17, and 23 of the Transportation Article.

Can I run a Maryland dealership from home?

A home office is allowed only under the wholesale-only rules; a retail dealer needs a fixed location in a substantial building that is visible from an improved street.

How long is the license good for?

COMAR sets a three-year license term. The statute still refers to an annual license fee and license year, so confirm the current term and fee with the MVA.

When do I renew?

The MVA posts a renewal notice in the Business Portal 60 days before expiration; submit at least 15 working days before your expiration date, and note that 30 days past expiration the account can no longer renew.

What happens if I deal without a license?

It is a crime, punishable by up to one year of imprisonment or a fine up to $5,000, or both.

How do I get a Maryland 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

Compare neighboring states: Virginia, Pennsylvania, Delaware and West Virginia.

Virginia$50,000 Pennsylvania$20,000 Delaware$25,000

Maryland dealers: vehicles without a title

If a trade-in or auction unit arrives with a missing or defective title, a bonded title may clear it. See the Maryland bonded title page, or read the vehicle title bond overview.

Four situations dealers run into have their own guides: rebuilt units that need a title, out-of-state purchases with no title, trailers with no title and title errors found at intake.

Stocking more than cars? See an off-highway unit with no title, titling a bike that arrives without paperwork and vessel title options for dealers.

Handling titles regularly? See how we work with dealers and title services.

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