Getting a used car dealer license in Maine

In Maine, used-car dealers are licensed by Maine Secretary of State Bureau of Motor Vehicles, Dealer Section.

Before your first retail sale you’ll need a $25,000 surety bond, a pre-licensing course and a business location that meets the state’s rules. The state also inspects the location.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

Issued by
Maine Secretary of State Bureau of Motor Vehicles, Dealer Section maine.gov (source, opens in a new tab)
Surety bond
Projected annual sales initially: 0–50 $25,000; 51–100 $50,000; 101–150 $75,000; 151+ $100,000. Reviewed annually. Inventory count is not the sales metric. legislature.maine.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
Agency packet requires owner or employee to review dealer-training information and sign completion affidavit. maine.gov (source, opens in a new tab)
Official fees
$150 initial nonrefundable application + $150 annual used-car license; used-car plate $20. maine.gov (source, opens in a new tab)
Renewal
Annual; expires last day of issue month one year later; $150 used-car license renewal. maine.gov (source, opens in a new tab)
Site inspection
Yes: Bureau of Motor Vehicles Detective inspects facility before final approval. maine.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used car dealer license

    Maine's Bureau of Motor Vehicles Dealer Section, under the Secretary of State, issues the used car dealer license. New car, recycler, auction, equipment, motorcycle, loaner and transporter dealers have different privileges. maine.gov › motor-vehicle-dealer-licensing (source, opens in a new tab)

  2. Plan for a repair department

    Maine used dealers need more than a lot: a vehicle display area, a suitable office, and a repair department that can work on two vehicles at once, with tools and at least one mechanic. maine.gov › motor-vehicle-dealer-licensing-requirements (source, opens in a new tab) legislature.maine.gov › title29-Asec901.html (source, opens in a new tab)

  3. Set up the business

    Register the business and taxes, and gather your ownership and business history and criminal or fraud disclosures for the past five years. legislature.maine.gov › title29-Asec901.html (source, opens in a new tab) maine.gov › Complete Dealer Packet Rev 09-25.pdf (source, opens in a new tab)

  4. Apply

    Submit the dealer application with the supporting history documents from the dealer packet. maine.gov › Complete Dealer Packet Rev 09-25.pdf (source, opens in a new tab) maine.gov › bmv-forms-and-applications (source, opens in a new tab)

  5. Pass the Detective's inspection

    A Bureau of Motor Vehicles Detective inspects the facility before final approval. maine.gov › Complete Dealer Packet Rev 09-25.pdf (source, opens in a new tab)

  6. Training affidavit, insurance and bond

    An owner or employee reviews the dealer training information and signs the completion affidavit. File the R1348 insurance filing for dealer plates and the bond on form MVD390. The bond is sized by projected annual sales, not by inventory: $25,000 for 0–50 sales, $50,000 for 51–100, $75,000 for 101–150 and $100,000 above 150, reviewed each year. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. maine.gov › Complete Dealer Packet Rev 09-25.pdf (source, opens in a new tab) legislature.maine.gov › title29-Asec901.html (source, opens in a new tab)

  7. Pay the fees

    A $150 nonrefundable application fee and $150 for the annual used car license; used car plates are $20. maine.gov › motor-vehicle-dealer-licensing-fees (source, opens in a new tab) maine.gov › Complete Dealer Packet Rev 09-25.pdf (source, opens in a new tab)

  8. Keep records and renew

    Keep transaction records for five years where they can be inspected. The license renews every year, at the end of the month it was issued, for $150. maine.gov › motor-vehicle-dealer-licensing-requirements (source, opens in a new tab) maine.gov › motor-vehicle-dealer-licensing (source, opens in a new tab)

The location

Display lot
Vehicle display area required. maine.gov (source, opens in a new tab)
Office
Repair department for two vehicles simultaneously, tools and at least one mechanic; suitable office; transaction records retained five years and accessible for inspection. maine.gov (source, opens in a new tab)

Before you apply

Ownership/business history and five-year criminal/fraud disclosures; dealer-plate R1348 insurance filing and tax registration described by agency packet. legislature.maine.gov (source, opens in a new tab)

Forms

MVD390 Surety Bond for Motor Vehicle Dealer; complete dealer packet and application via official forms directory. maine.gov (source, opens in a new tab)

Get the current versions from maine.gov; we don’t host copies.

Not the license you’re after?

New car, recycler, auction, equipment, motorcycle, loaner and transporter categories have different privileges. maine.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: funding two-vehicle repair capacity and mechanic, plus bond sized to projected annual sales.

Easy mistakes:

Questions

How much does a Maine dealer license cost?

$300 to start: a $150 application fee and $150 for the annual license, plus $20 per plate. The bond premium and the repair department cost more. maine.gov › motor-vehicle-dealer-licensing-fees (source, opens in a new tab) legislature.maine.gov › title29-Asec901.html (source, opens in a new tab)

How big a bond do I need?

It depends on projected annual sales: $25,000 for up to 50, $50,000 for 51–100, $75,000 for 101–150, $100,000 above that. legislature.maine.gov › title29-Asec901.html (source, opens in a new tab)

Do I need a mechanic?

Yes. A used dealer needs a repair department for two vehicles at once, with tools and at least one mechanic. maine.gov › motor-vehicle-dealer-licensing-requirements (source, opens in a new tab)

Sources

Not affiliated with the Maine BMV. Not legal advice. Requirements change; always confirm with the state.