What Is the Massachusetts Motor Vehicle Dealer Bond?
The Massachusetts motor vehicle dealer bond stands behind your dealership. If a buyer loses money from fraud or a title problem, they can file a claim. The surety covers it, and you repay the surety.
The Massachusetts bond is set at $25,000.
Massachusetts dealer licenses come from your city or town. Each one sets its own bond, often around $25,000.
Who Needs This Bond in Massachusetts?
- Anyone selling vehicles for profit in Massachusetts must carry the bond to get a dealer license.
- Wholesale dealers need it too.
- At renewal, you keep the bond active.
How Much Will the Bond Cost?
Premium is credit-driven and similar to other $25,000 bond states:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| Excellent Credit | $250 – $375 | 1% – 1.5% |
| Good Credit | $375 – $625 | 1.5% – 2.5% |
| Fair Credit | $625 – $875 | 2.5% – 3.5% |
| Credit Challenges | $875 – $1,000 | 3.5% – 4% |
| Past Credit Issues | $1,000 – $1,250+ | 4% – 5%+ |
How to Get Bonded — Step by Step
- Start your application.
- Get your bond here — same-day issuance for many.
- File it to the local city or town licensing office.
- Get your dealer license and sell cars.
Renewal & Continuous Bond Coverage
Plan to renew your Massachusetts dealer bond every year. Renew ahead of time so your license never drops.
Frequently Asked Questions
Who sets the Massachusetts bond amount?
Your city or town. Each one sets its own bond, often around $25,000.
Does the Massachusetts bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you repay the surety. The bond is not your own insurance.
How fast can I get bonded in Massachusetts?
Most quotes come back fast, often within a day. Many bonds are issued the same day for good credit.
How much does the bond cost?
You pay a yearly premium — a small percent of the bond amount. Your rate depends mostly on your credit.
How a Surety Bond Works
A dealer bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.
Ready to get your Massachusetts Motor Vehicle Dealer Bond?
Apply in 2 minutes. Most quotes returned same day.
Start Your ApplicationRelated: All Massachusetts surety bonds · What is a surety bond? · How surety bond costs are calculated