A Maine MVD bond, also known as a Motor Vehicle Dealer bond, is a type of surety bond that is required by the Maine Bureau of Motor Vehicles for individuals or businesses that want to obtain or renew a motor vehicle dealer license. The bond serves as a form of protection for customers against any fraudulent or unethical practices by the motor vehicle dealer. If a dealer engages in such practices, a customer may file a claim against the bond to seek compensation for any resulting damages. The bond amount required by the Maine MVD may vary based on the type of license and the dealer's history, and the bond must be renewed periodically to maintain the dealer's license.
What is an Maine Car Dealer Bond?
Maine Car Dealer Bonds are required by Maine's BMV to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $10,000. The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.
The State requires a Car Dealer bond for each license you hold:
- $10,000 New and Used Vehicle Dealer Bond https://www.wwisinc.com/bond-types/apply/maine-mvd-bond
Different parts of a bond:
There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
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Maine MVD Bond Requirements and Information:
Who Needs a Maine Car Dealer License?
You must obtain a dealer license in ME if you’re in the business of:
· Buying vehicles to resell.
· Selling at least 5 vehicles over the course of 12 months.
· Advertising or displaying for sale 3 vehicles within 30 days.
NOTE: The above criteria DO NOT apply to vehicles you’ve owned and registered for at least 6 months.
ME Dealer License Application Packet
The ME BMV provides a Complete Dealer Packet that explains the requirements and includes the documents ALL types of dealer applicants must fulfill and provide. On this page, we’ll go over the steps to obtaining a new or used dealer license.
To start, make sure you have all of the following items to accompany your Complete Dealer Packet:
· Payment for the applicable dealer licensing fees.
· A completed AND notarized:
o Dealer packet questionnaire.
o Ordinance clearance for building, zoning, and land use.
· A copy/copies of the:
o Partnership agreement if your business is a partnership.
o Business documents/applications from the Maine Bureau of Corporations, Elections & Commissions.
o Lease agreement, if you don’t own the property.
o Plot plan.
· Your sales tax number.
· Your Federal ID from the OR your Social Security number.
· Criminal background checks, conducted by the Maine State Police for all your dealership’s:
After confirming you have all the required items above, your business location will need to pass an inspection as an established place of business. Maine provides a list of all the requirements your dealership must meet for the inspection in Dealer Rules and Regulations—Chapter 103 (Form MVD-359).
Once your business location passes inspection, ask your insurance agency to submit the following items to the ME Bureau of Motor Vehicles on your behalf:
· R-1348 insurance.
· The applicable surety bond amount.
o The surety bond depends on the number of motor vehicles you sell each year—refer to the Complete Dealer Packet for details.
When your insurance is all squared away, submit your completed dealer license application to:
Bureau of Motor Vehicles
Dealer and Agent Services
29 State House Station
Augusta, ME 04333