Maine Auto Dealer Bond Overview
If you wish to open a car dealership in Maine you need to get licensed as a dealer at the Bureau of Motor Vehicles - Dealer Section. When applying for your license, the Bureau will request that you post a Maine auto dealer bond as financial security, to guarantee that you conduct business honestly and fairly.
An auto dealer bond is essentially an agreement that protects the car dealer’s customers. These agreements are made between the following three sides: the principal (the dealer), the obligee (the Maine Bureau of Motor Vehicles) and the surety (the company that issues and backs the bond). By issuing and backing the bond, the surety guarantees that it can compensate an obligee if a claim is made against the bond.
Claims can be made against a bond whenever a dealer is dishonest to customers, or violates state statutes and regulations, such as the Maine Revised Statutes (Title 29-A, Chapter 9: DEALERS). Dealers should alway strive to avoid claims, as a valid claim can be a heavy financial burden and soil a business’s name.
Here are the main details concerning the Maine auto dealer bond:
- Surety Bond Name: Maine Auto Dealer Bond
- Surety Bond Amount: $5,000 - $25,000 (depending on amount of vehicles sold)
- Obligee: Maine Bureau of Motor Vehicles - Dealer Section
29 State House Station, Augusta, Maine 04333
- Expiration Date: Continuous Bond
Continue reading below for more information about Maine car dealer bonds, how much they cost, and how to get bonded with Bryant Surety Bonds.
Maine Auto Dealer Bond Cost
Maine auto dealer bond amounts vary between $5,000 and $25,000. This is not the sum a dealer has to pay to get a bond, though. The surety bond amount is the maximum compensation that a surety may extend to a claimant whose claim has been deemed legitimate.
The cost of a dealer bond is the premium you need to pay to obtain the bond which, typically, is only a small percentage of the total amount. The premium is determined by the surety which issues the bond, based on its assessment of your business. Your personal credit score has the greatest influence in determining your bond cost. Sureties also take other factors into account, though these are secondary to your credit score. These are:
- Personal asset profile
- Financial statements (personal and business)
- Work record and industry experience
These factors can have a positive effect on your premium if they show that you are reliable and financially stable. If your credit score is high, this is typically enough for a surety to offer you a low rate on your bond, one between 1,5%-3% of your total bond amount.
|Surety Bond Cost by Credit Score|
|Maine Auto Dealer Bond||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|0-50 Vehicles||$5,000||Starts at $100||$100-$150||$100-$200||$150-$350|
Apart from your personal credit score, your choice of surety bond agency also influences the rate at which you can obtain your bond. Bryant Surety Bonds' partners are A-rated and T-listed sureties, which makes them the best and safest in the country. Working with these companies allows us to find the lowest possible price for your bond.
For an estimate of your premium use our surety bond cost calculator in the right sidebar, or apply online now with our online application form. Give us a call at 866.450.3412 to speak to our experts if you need help or advice concerning your bond.
To find out how you can reduce your premium over time, check out our Surety Bond Cost page.
Bad Credit Auto Dealer Bonds
Applicants are often concerned that their bad credit score may stop them from getting bonded. While some sureties are unwilling to assume the risk of bonding applicants with bad credit, we can almost always provide the bond you need through our Bad Credit Program. This program allows bad credit applicants to get bonded by the same companies that issue all other bonds we underwrite.
Rates for applicants with a bad credit are generally higher than standard market rates, but typically do not exceed 7% of the total amount.
Maine Dealer License: Application and Renewal
To apply for your dealer license you also need to:
- Complete a licensing questionnaire
- File application and pay all relevant fees (filing, license and plate fee)
- Submit zoning form with proof of compliance
- Submit partnership agreement (if partnership)
- Submit lease agreement (if not owned)
- Submit copy of the plot plan
- Obtain sales tax number and Federal ID number or Owner’s Social Security number
When it’s time for you to renew your license and bond, you will have to re-submit some of these documents and pay some of the fees again. If you work with Bryant Surety Bonds, we’ll remind you in advance, to ensure you have plenty of time to renew your Maine dealer license and bond.
Get Your Maine Auto Dealer Bond Today
To get your Maine auto dealer bond apply online here. Submitting your application takes only a few minutes. We’ll contact you if we need any further documentation in order to process your application.
As soon as your bond is issued by the bonding company we will forward it to you by mail. We can also provide you with digital copies of your bond, if you need them
Do you have questions? Call us at 866.450.3412 to speak to us. We will be happy to help!