Getting a used car dealer license in Maryland

In Maryland, used-car dealers are licensed by Maryland MVA Business Licensing & Compliance.

Before your first retail sale you’ll need a $15,000 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
Maryland MVA Business Licensing & Compliance mva.maryland.gov (source, opens in a new tab)
Surety bond
Based on projected sales: 1–250 $15,000; 251–500 $25,000; 501–1,000 $35,000; 1,001–2,500 $50,000; above 2,500 $150,000. mva.maryland.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
Mandatory business licensing orientation before issuance, monthly online; submit CS303 with application. mva.maryland.gov (source, opens in a new tab)
Official fees
Current linked packet: $900 used-dealer license for three years; interchangeable tags $150 each for three years. One gratis salesperson license described on primary page. mva.maryland.gov (source, opens in a new tab)
Renewal
Current packet: three-year term and $900 renewal. mva.maryland.gov (source, opens in a new tab)
Site inspection
Yes: MVA Compliance Inspector, then Licensing reviews report/photos. mva.maryland.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    Maryland's MVA Business Licensing & Compliance issues the Used Vehicle Dealer license. A wholesaler can't sell to the public, and new, trailer, motorcycle and emergency vehicle dealers are licensed differently. mva.maryland.gov › dealer (source, opens in a new tab)

  2. Set up the business

    Register the entity or trade name, get a trader's license from your local Circuit Court, and arrange workers' compensation or an exemption. mva.maryland.gov › 543 (source, opens in a new tab)

  3. Prepare the premises and repairs

    Get your county or city zoning authority to sign form CS053. If you won't repair vehicles on site, sign a repair contract (CS125) with a facility within five miles. A trailer office needs a Use and Occupancy Permit. mva.maryland.gov › 543 (source, opens in a new tab) mva.maryland.gov › dealer (source, opens in a new tab)

  4. Criminal records

    Request criminal records for every applicant (form CS011), including from the state where you lived if you moved to Maryland within the last year. mva.maryland.gov › 543 (source, opens in a new tab)

  5. Choose the bond for your projected sales

    The bond (CS067A) depends on projected sales: $15,000 for 1–250, $25,000 for 251–500, $35,000 for 501–1,000, $50,000 for 1,001–2,500 and $150,000 above that. Keep the names on the bond identical to the owner names. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. mva.maryland.gov › 543 (source, opens in a new tab)

  6. Apply on the myMVA Business Portal

    Submit the dealer application (CS042) with the orientation request (CS303) and the rest of the packet. MVA rejects incomplete packets. mva.maryland.gov › dealer (source, opens in a new tab) mva.maryland.gov › 543 (source, opens in a new tab)

  7. Inspection and orientation

    An MVA Compliance Inspector reviews the site, then Licensing reviews the report and photos. You also attend the mandatory business licensing orientation before the license is issued; it runs online monthly, so plan around it. mva.maryland.gov › dealer (source, opens in a new tab) mva.maryland.gov › 543 (source, opens in a new tab)

  8. Pay after approval

    Once approved, pay the fees: $900 for a three-year used dealer license and $150 per interchangeable tag for three years. The primary page describes one salesperson license at no charge. mva.maryland.gov › dealer (source, opens in a new tab) mva.maryland.gov › 543 (source, opens in a new tab)

  9. Keep it current

    Keep accurate inventory and sales records. The license runs three years, and renewal is $900. mva.maryland.gov › dealer (source, opens in a new tab) mva.maryland.gov › 543 (source, opens in a new tab)

The location

Office
Maintain accurate inventory/sales records; trailer office needs Use and Occupancy Permit. mva.maryland.gov (source, opens in a new tab)
Zoning and home-based lots
CS053 signed by county/city zoning authority. mva.maryland.gov (source, opens in a new tab)

Before you apply

Registered entity/trade name; local Circuit Court trader’s license; criminal records for applicants, including prior state if resident there during last year; workers compensation or exemption; repair facility contract within five miles if no on-site facility. mva.maryland.gov (source, opens in a new tab)

Forms

CS042 dealer application; CS303 orientation request; CS067A bond; CS053 zoning; CS125 repair contract; CS011 criminal-record request; INF004 tax information, all in packet. mva.maryland.gov (source, opens in a new tab)

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

Not the license you’re after?

Wholesaler cannot sell to public; new, trailer, motorcycle and emergency vehicle categories differ. mva.maryland.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: securing a compliant repair arrangement and fitting monthly orientation into launch timing.

Easy mistakes:

Questions

How much does a Maryland dealer license cost?

$900 for a three-year license, plus $150 per tag for three years. The bond premium, the trader's license and the premises cost more. mva.maryland.gov › 543 (source, opens in a new tab) mva.maryland.gov › dealer (source, opens in a new tab)

How big a bond do I need?

It depends on projected sales: $15,000 for up to 250 a year, rising to $150,000 above 2,500. mva.maryland.gov › 543 (source, opens in a new tab)

Do I need my own repair shop?

No, but without one you need a repair contract with a facility within five miles. mva.maryland.gov › 543 (source, opens in a new tab)

Sources

Not affiliated with the Maryland MVA. Not legal advice. Requirements change; always confirm with the state.