Who requires it
MDOT Motor Vehicle Administration — Dealer licensing
License & permit · Maryland
Maryland Motor Vehicle Dealer Bond
Maryland motor vehicle and trailer dealers must file a surety bond with the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA) after the Administration approves the application and before the license issues. Transportation Article § 15-308 sets the amount from sales history—or estimated first-year volume for first-time licensees—using separate schedules for new-vehicle dealers, used-vehicle and long-trailer dealers, and dealers limited to short or boat trailers. One bond can cover the primary location and every supplemental location licensed under the same dealer business license number.
Common bond amount
$5,000–$300,000
By dealer type and prior-year or estimated sales under Transp. § 15-308; new-vehicle track tops at $300,000; used/long-trailer track tops at $150,000; short/boat trailer track is $5,000.
How you file
File with MDOT MVA; one bond per dealer license number (covers primary and supplemental locations)
Renewal
Keep continuous with the dealer license; resize when sales brackets change
Who requires it
Applicants and licensees for a Maryland motor vehicle or trailer dealer license under Transportation Article Title 15, Subtitle 3, including new-vehicle dealers, used-vehicle dealers and wholesalers, and trailer dealers on the schedules in § 15-308. Manufacturers, distributors, and factory branches follow other Title 15 credentials outside this dealer-bond guide.
How much is required
Section 15-308(b) fixes three tracks. Dealers licensed only for trailers or semitrailers 15 feet or less in length, or only boat trailers of any size, post $5,000. New motor vehicle dealers size by prior-license-year new-vehicle sales: 1–500 = $50,000; 501–1,000 = $75,000; 1,001–2,500 = $100,000; over 2,500 = $300,000. Used-only dealers (including wholesalers) and dealers in trailers or semitrailers over 15 feet size by prior-year unit sales: 1–250 = $15,000; 251–500 = $25,000; 501–1,000 = $35,000; 1,001–2,500 = $50,000; over 2,500 = $150,000. First-time applicants without a prior licensed year use estimated first-year volume, with floors of $50,000 for new-vehicle applicants and $15,000 for used or long-trailer applicants. If the location previously operated under a licensed dealer, MVA may set the amount from that location’s prior sales volume.
How to get and file it
After MVA notifies you that the dealer application is approved, have an authorized surety issue the § 15-308 bond on the Administration-approved form in the exact dealer name and for the amount MVA assigns from the schedule. File it with MDOT MVA before the license is issued, and keep coverage aligned when sales volume or license type changes at renewal. Maintain the bond while the dealer license is active. Recalculate the amount when prior-year sales move you into another bracket. Adding supplemental locations under the same dealer business license number does not require a second bond under § 15-308(a)(2), but a separate dealer license number needs its own instrument.
Cost note
The schedule amount is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Authority
- Transportation Article § 15-308
- New-vehicle schedule
- $50,000 / $75,000 / $100,000 / $300,000 by prior-year new-vehicle sales bands
- Used / long-trailer schedule
- $15,000 / $25,000 / $35,000 / $50,000 / $150,000 by prior-year unit sales bands
- Short or boat trailer only
- $5,000 fixed amount
- Locations
- One bond may cover primary and supplemental locations under the same dealer license number
Official sources
Related resources
Frequently asked questions
What amount does a brand-new Maryland dealer use?
If you were not licensed to sell vehicles in the preceding license year, MVA bases the bond on estimated first-year volume, but not below $50,000 for a new-vehicle license or $15,000 for a used-vehicle or long-trailer license. Short or boat-trailer-only dealers stay on the $5,000 amount.
Do I need a separate bond for each lot?
Not when every location is licensed under the same dealer business license number—§ 15-308 says the bond is for the primary location and all supplemental locations on that number. A different dealer license number needs its own bond.
Related Maryland bond guides
Home Improvement Contractor Bond
$30,000 or $100,000
Maryland Home Improvement Commission contractor licensing centers on personal financial solvency, because the Home Improvement Guaranty Fund can pay homeowners when a licensee’s work is unworkmanlike, inadequate, or incomplete. Applicants who do not meet MHIC’s solvency guidelines may bring an indemnitor or post a surety on the Commission’s official bond forms—currently published at $30,000 and $100,000. Meeting solvency with personal assets, bank statements, and credit documentation can mean no bond is required.
Mortgage Lender Bond
$50,000–$750,000
Maryland licenses mortgage brokers, lenders, and servicers under a single mortgage lender framework administered by the Commissioner of Financial Regulation. Financial Institutions Article § 11-508 requires a continuous surety running to the Commissioner—between $50,000 and $750,000—for the benefit of the State and borrowers harmed by licensing-law violations. The Office of Financial Regulation publishes Maryland-only volume tiers for brokering/lending and for servicing portfolios; when both apply, the higher amount controls.
Title Insurance Producer Bond
$150,000
Maryland title insurance producers must show $150,000 of surety protection—or a letter of credit—before the Maryland Insurance Administration issues the producer license. Insurance Article § 10-121 and MIA licensing instructions set that amount unless the Commissioner approves a lower figure in a specific case. Business-entity producers generally also maintain a separate $150,000 fidelity bond covering employees and title insurance producer independent contractors, unless an MIA waiver form applies.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Maryland application
Maryland will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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