The Maryland Department of Transportation Motor Vehicle Administration is the agency that license and regulates motor vehicle dealers in the State of Maryland. As part of their licensing requirements, vehicle dealers are required to submit a surety bond. Bond amounts vary and are based on the number of vehicles sold/projected to be sold over the course of one year.
| Bond Amount | ||
| New Vehicle | 1-500 | $50,000 |
| 501-1,000 | $75,000 | |
| 1,001-2,500 | $100,000 | |
| Over 2,500 | $300,000 | |
| Used Vehicle | 1-250 | $15,000 |
| 251-500 | $25,000 | |
| 501-1,000 | $35,000 | |
| 1,001-2,500 | $50,000 | |
| Over $2,500 | $150,000 | |
| Wholesale | 1-250 | $15,000 |
| 251-500 | $25,000 | |
| 501-1,000 | $35,000 | |
| 1,001-2,500 | $50,000 | |
| Over 2,500 | $150,000 |
This surety bond ensures that the principal (auto dealer) is held responsible for any and all financial losses incurred due to their unethical or unlawful business practices, and that they faithfully follow all regulations laid out in the Transportation Article of the Annotated Code of Maryland and Regulations of the Administrator of Motor Vehicles. The bond is continuous and will remain in effect until canceled. The state requires the surety company to provide a minimum 45 day written notice before canceling.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.