Motor vehicle dealers are required to post a Motor Vehicle Dealer Bond as part of the process to license the dealership. The amount of the bond depends on what type of vehicles are to be sold, the amount of vehicles you plan to sell, and other factors. Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
This bond guarantees the principal will abide by Massachusetts state laws and regulations along with Chapter 140, Section 58 of the General Laws as amended by Chapter 422 of the Acts of 2002.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Since this bond is continuous, it remains in full force and effect until cancelled. If the bond is cancelled, the State must be notified 60 days prior to cancellation of the bond.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company.
For more licensing information, visit Massachusetts’ official page.