Massachusetts Auto Dealer Bond

1. Apply for Your Massachusetts Auto Dealer Bond

You can apply for your Massachusetts auto dealer bond, also known as used car dealer bond, in a matter of minutes by filling out the online application.

Olivia recently applied for an auto dealer bond with us but was unsure about her ability to qualify with a low score. However, she got an instant bond quote and was happy with the cost of her bond. Olivia paid for her bond online and quickly wrapped up her dealer license application.

2. Review Your Quote

Our customers receive instant quotes after applying for a Massachusetts auto dealer bond online. If a bond application is complicated, a quote is provided in 48 hours or less.

3. Pay the Premium Online

To complete your bond purchase, take advantage of our online payment portal. Once we receive the premium payment, we will process the bond and email it directly to you. If requested, we can mail your bond to you as well. 

Our bond process is straightforward and fast, and our bond experts are available to answer your questions. If you need assistance, please contact us or call us at (877) 514-5146.

The Massachusetts Registry of Motor Vehicles is responsible for dealer registrations. Under Massachusetts law Title XX, Chapter 140, Section 58, dealers must have a $25,000 surety bond. This applies to both new and used vehicle dealers. 

While dealers must be registered with the state and meet the statewide bond requirement, the licensing requirement for auto dealers is at the municipal level. 

The obligee for the auto dealer license bond is the Commonwealth of Massachusetts. This is a continuous bond, but it can be canceled by the surety. The principal and municipality must receive written notice within 30 days of the cancellation.

To avoid the cancellation of your auto dealer bond, the premium must be paid yearly. The cancellation of your bond can result in the suspension of your Massachusetts dealer license and registration, which prevents you from doing business.

Your annual surety bond premium can be made online through our payment portal. We will contact you prior to the due date with payment instructions.

To file a claim against a Massachusetts auto dealer bond, the claimant must first obtain a final judgment against the dealer in court. The claimant then must contact the surety company directly. The surety company will then affirm the judgment upon receiving the claim. 

The amount of the claim must not exceed the penal sum of the surety bond. After the claimant is paid according to the judgment, the dealer must reimburse the surety company fully for the amount of the claim.

You can get more details through our Massachusetts dealer license guide. While the bond is required at the state level, licensing requirements are established by municipalities and vary. Some of the requirements may include:

• A license application
• A surety bond
• A business location
• Business entity documents
• Liability insurance
• Workers' compensation insurance
• Application fee

For licensing requirements that pertain to you, contact your municipality. For more information about dealer registrations, contact: 

Massachusetts Registry of Motor Vehicles
P.O. Box 55889
Boston, MA 02205
Phone: (800) 858-3926