Dealer Surety Bond in Maryland: $10,000–$100,000 Requirement
Maryland requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Maryland
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Maryland
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Maryland-Specific Note
Maryland-Specific Facts for Dealer Surety Bond
Maryland Vehicle transfer fees and requirements
In Maryland, the title transfer fee is $100 and registration costs $135 - $187 for 2-year registration. Vehicle sales are subject to 6% excise tax on the purchase price or fair market value. Notarization is required for vehicle bill of sale documents in Maryland. Emission testing is required in Maryland — verify the vehicle passes before completing the sale.
- Notarized bill of sale required for title transfer
- Safety inspection required before registration
- Emissions testing required in certain counties
- MVA handles title and registration (not DMV)
Maryland sales tax on vehicle purchases
Maryland has a 6% state sales tax rate. Flat 6% excise tax on purchase price or fair market value. Private-party vehicle sales in Maryland are subject to sales tax. Excise tax applies to all vehicle sales. The title transfer fee is $100.
Maryland bill of sale statistics
BillOfSaleNow has generated 1,464 bill of sale documents for Maryland transactions, with 40 generated this month alone. The most popular vehicle type is car.
More Maryland Vehicle Guides
- Window Sticker (Monroney) in Maryland
- Abandoned Vehicle Title in Maryland
- Auto Auction Buyer Guide in Maryland
- Buy Here Pay Here in Maryland
- Car Buy-Back Program in Maryland
- Car Buyer Remorse in Maryland
Each guide is written specifically for Maryland laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Maryland?
Maryland requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Maryland?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Maryland?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Maryland dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Maryland?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Ready to Document Your Vehicle Sale?
Create a legally compliant Maryland bill of sale in minutes.
Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.