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Massachusetts Motor Vehicle Dealer Bond

Used and pre-owned auto dealers must furnish evidence of a $25,000 Massachusetts motor vehicle dealer bond. The for this bond is contingent upon your good credit, and is at 2% of the bond’s amount, $500 annually. Please call AmeriPro Surety Bonds today at: 844-589-9732.

Massachusetts Motor Vehicle Dealer Bond

AmeriPro Surety Bonds | 844-589-9732




Auto Dealers of Pre-Owned Vehicles: Commonwealth of Massachusetts




Auto dealers who wish to be licensed by the Commonwealth are required to furnish and maintain evidence of an active surety bond.

AmeriPro Surety Bonds provides you with the Massachusetts auto dealer surety bond in the amount required by statutes as both a new (for first time licensees) and renewal surety bond (for existing licensees.)




Massachusetts Motor Vehicle Dealer Bond: Qualifying and the Premium




The Massachusetts motor vehicle dealer bond is a $25,000 surety bond required of auto dealer licensees within the state.

More specifically, the Massachusetts auto dealer bond is required of Class 2 car dealers; that is, those who sale used or pre-owned vehicles (Massachusetts Generals Laws, Section 58: Classes).

Moreover, each dealership owned by you which operates under a different name, and which is licensed as Class 2, must maintain its own surety bond.

Pricing for an auto dealer surety bond in the Commonwealth will typically be determined by the following:

  • The amount of surety bond required (likely, for most applicants, a $25,000 surety bond);
  • Information provided on a surety bond application;
  • Review by an underwriter.  Good credit will be required, and approval for this bond is at 2%, $500 annaully.

Additional Premium Payment Options

At $500 premium premium, your MA auto dealer bond is active for a one year period.  Thereafter your bond and the premium renew.  Our agency also offers you the option to prepay your bond up to 3 years.  Prepayment of your premium allows you a savings over year to year renewal of the premium.  It also, of course, lengthens the time between renewals.

The premium prepayment options and savings are as follows:

  • If prepaid for 2 years, the premium is $900, a $100 savings;
  • If prepaid for 3 years, the premium is $1300, a $200 savings.





The Purpose of the this Surety Bond




While the surety bond is required of Massachusetts Class 2 auto dealer licensees as a condition for licensing (the Commonwealth will not issue or renew a license without evidence of some financial responsibility), the purpose of this surety bond is for the residents of Massachusetts.

Among other protections offered the public, your auto dealer surety bond does the following:

  • The surety bond protects against a used vehicle sold to a consumer, which is subsequently discovered as having been a stolen vehicle;
  • The surety bond protects against vehicles whose odometer has been rolled back;
  • The surety bond protects the consumer from a dealership which does not pay off the lien on a trade-in.

In short, this motor vehicle dealer surety bond protects against acts of fraud, theft, malfeasance and misrepresentation in the operation of your auto dealership, and which causes some harm.

Such protections for the public also extend to wrongful acts committed by any employees, agents, and managers of your auto dealerships which are first judged as unlawful by a Commonwealth court.

(Section 58) goes into more detail as to other protections offered, and, moreover, and how a claim is paid against your surety bond.




Duration of this Surety Bond




The Massachusetts motor vehicle dealer bond is active for one year from the date of issuance, and thereafter the bond must be renewed.

You may be offered the opportunity to prepay the surety bond for up to 3 years, thereby offering you a savings on the premium over a year to year renewal.




About Us




AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout Massachusetts.

Our agency also offers surety bonds nationwide.

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AmeriPro Surety Bonds

Our focus is exclusively surety bonds. We have two areas of concentration: YOU, our customer; and providing you with the surety bond that you need. Whether the bond is an "instant issue"; is for a contractor; a court bond; or one for a client with lower credit scores, AmeriPro Surety Bonds dedicates itself to providing our customers with a seamless, professional, and quick surety bond experience.

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