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Maine Auto Dealer Bond

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What is a Maine Auto Dealer Bond?

To legally work as an auto dealer in the state of Maine, individuals and businesses must have a valid auto dealer license. One critical component of obtaining a license is securing a Maine auto dealer bond. This type of surety bond helps protect consumers from fraudulent or misleading business practices that may lead to financial loss.

Should a licensed auto dealer in Maine fail to comply with the law when conducting business, a claim can be made against the auto dealer's bond. Claims can be expensive for auto dealers as they are responsible for repaying successful claims covered by the bond.

Who Needs a Maine Auto Dealer Bond?

As in many states, any business or individual engaged in the sale or exchange of motor vehicles is considered an auto dealer in Maine. This activity requires a license and a Maine auto dealer bond. The amount of the bond required, however, varies depending on the number of vehicles sold throughout the year. Additionally, both new and used vehicle dealers must have a bond, as well as motorcycle, equipment, and heavy trailer dealers operating within the state.

Maine Auto Dealer Bond Obligee Details

Surety bonds are a three-party contract between the licensed auto dealer, known as the principal of the bond, the surety company that provides the bond, and the state's licensing authority, known as the obligee of the bond.

In Maine, the obligee of any auto dealer bond is as follows:

Department of the Secretary of State

Bureau of Motor Vehicles, Dealer and Agent Services

29 State House Station

Augusta, Maine 04333

Phone: 207-624-9126

How Much Does a Maine Auto Dealer Bond Cost?

Auto dealer bonds are priced based on two main factors: the amount of the bond required and the financial strength and history of the licensed auto dealer applying for the bond. In Maine, auto dealers that sell up to 50 vehicles need a bond of $25,000. Those that sell between 51 and 100 vehicles need a $50,000 bond, and those that sell between 101 and 150 must have a bond of $75,000. Any Maine auto dealer that sells more than 151 vehicles must have a $100,000 auto dealer bond in place.

The amount of the bond is not the price you pay out of pocket, however. Instead, the surety company providing the bond determines the bond premium which ranges from 1 to 10% of the bond total. This percentage is based on the financial track record and credit history of the auto dealer. Because the surety company initially pays claims on behalf of the auto dealer, they are extending a form of credit to the business. Therefore, dealers with stronger financial histories pay a lower bond premium for a Maine auto dealer bond.

How do You Get a Maine Auto Dealer Bond?

Getting a Maine auto dealer bond begins with a short application submitted online. The surety company reviews the bond amount requested as well as your financial track record to determine a bond quote. Once the bond premium is paid, a Maine auto dealer bond is finalized and details are sent to the obligee. Maine auto dealer bonds must be renewed at the same time an auto dealer licensed is renewed.

Frequent Questions

What does an auto dealer bond cost?

Costs are a percentage of the auto dealer bond amount that's required of you, which is based on your personal credit. Use our bond pricing tool to get a quick ballpark estimate.

Can I get a bond with bad credit?

Yes. You can get approved for a bond regardless of your credit situation. However, the price will increase. You can apply to get an instant approval. As the largest writer of surety bonds in the U.S., we have access to high risk markets that many other agencies do not.

How long does the application take?

It only takes minutes, as we can approve you for your bond instantly online. You can get a no obligation quote on our website at any time.

Can I get auto dealer bond insurance to protect myself?

No. An auto dealer bond does not protect you, it protects the public. However, you can protect yourself or your customers by getting fidelity bonds.

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Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
David Tillotson
Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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About JW Surety Bonds
We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company.