- License
- Used Car Dealer License
- Surety bond
- $25,000 to $100,000 by sales
- State fee
- $300 ($150 filing + $150 license)
- Pre-license course
- BMV dealer training + affidavit
- Background check
- State background check, $21 each
- License term
- 1 year, $150 renewal
Maine dealer license requirements
The figures a first-time used car dealer needs before applying to Maine BMV. Each row shows how well it is supported.
- Surety bond
- $25,000 to $100,000 by salesOfficial source
Set by the prior year's sales: $25,000 for 0 to 50, $50,000 for 51 to 100, $75,000 for 101 to 150, $100,000 for 151 or more. A new dealer files a bond based on projected sales.
- State license fee
- $300 ($150 filing + $150 license)Official source
A $150 non-refundable initial application fee plus the $150 annual used car license fee. Dealer plates are $20 each and the state background check is $21 per person.
- Pre-license education
- BMV dealer training + affidavitOfficial source
New applicants must complete the Bureau's Dealer/Title training and turn in a signed affidavit before the license is issued. The owner or an employee can do it. No hour count is published.
- Background check
- State background check, $21 eachOfficial source
The Bureau requests a State Bureau of Identification check on each owner, officer and partner at first application and at every renewal, using legal name and date of birth. The fee is $21 per person.
- Insurance
- 100/300/100 liability on platesOfficial source
Before plates are issued, your insurer files proof of liability coverage of $100,000 per person, $300,000 per accident and $100,000 property damage (the R-1348 filing). A bond in those amounts may be filed instead.
- Business location
- Office, 3,500 sq ft lot, repair bayOfficial source
A permanent enclosed building you own or lease, with a 64 square foot office, 3,500 square feet of display, a heated 400 square foot repair area, a mechanic and a 12 square foot sign.
- License term and renewal
- 1 year, $150 renewalOfficial source
The license expires on the last day of the month, one year after it is issued. Renewal costs the $150 annual license fee plus $20 per plate, and the background check is run again.
- Sales allowed without a license
- 5 vehicles in 12 monthsOfficial source
You need a license if you sell more than 5 vehicles in any 12-month period, buy vehicles to resell, or advertise or display 3 or more within 30 days. Vehicles you owned and registered for 6 months are not counted.
- Processing time
- Decision within 90 days (statute)Official source
State law requires the Secretary of State to act on an initial or renewal application within 90 days of receiving it. The Bureau does not publish a typical turnaround.
“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.
Who issues the license
Maine Department of the Secretary of State, Bureau of Motor Vehicles, Dealer Licensing
License you apply for
Used Car Dealer License
Official licensing pageDisplay area is 3,500 square feet, not 300
How to get a Maine dealer license
The order that works for a first application. Tick each step off as you finish it.
Find a site that meets the dealer rules
Read the Bureau's dealer rules (Chapter 103) before you sign anything. A used car dealer needs an enclosed building with an office, 3,500 square feet of display and a 400 square foot repair area. If you lease, the lease must state the size of the lot, building, office and repair area and be signed, witnessed or notarized.
Rule Chapter 103
Get town sign-off and register the business
Have a city or town official sign the zoning and land use clearance (MVD-363), which must be notarized. Register the corporation, LLC or partnership, get a federal ID number, and get a sales tax number from Maine Revenue Services.
MVD-363
Assemble the application packet
File the dealer license application (MVD-350) with the notarized applicant questionnaire (MVD-362), a plot plan with measurements (MVD-364), your lease, entity documents and sales tax certificate. Pay the $150 filing fee, the $150 license fee, $20 per plate and $21 per person for the background check.
MVD-350 · $300 plus plates
Complete the Bureau's dealer training
The owner or an employee reviews the dealer training documents posted by the Bureau and signs the Dealer Licensing Training Affidavit. The Bureau will not issue a new license without it.
Training affidavit
Pass the site inspection
A Bureau of Motor Vehicles detective inspects the location against Chapter 103: building, display area, office, repair area, tools, sign and posted hours. Have everything in place before the visit, including the mechanic arrangement.
On-site inspection
File the bond and the insurance certificate
Ask your agent to file the surety bond (MVD-390) and the R-1348 insurance filing for your dealer plates. The Bureau does not need either one until the inspection is done. Size the bond to your projected sales: $25,000 covers up to 50 vehicles a year.
MVD-390 · R-1348
Get the license and set up Maine sales paperwork
Display the license where the public can see it. Maine is exempt from the federal Used Car Rule because it has its own disclosure law, so every used vehicle on the lot needs Maine's written vehicle history statement. Retail sales also require the VIN engraved on the catalytic converter when it is visible from underneath.
29-A §952 · Title 10 ch. 217
Practical advice
Before you apply
Seven things to settle before any state application: the business, the owners, the money and the property.
Read the startup playbookMaine dealer location requirements
What the state checks at the business address.
- A permanent enclosed building you own or lease, with heat, its own entrance and a solid wall between it and any unrelated business.
- At least 3,500 square feet used only to display vehicles for sale, on pavement, gravel, crushed rock or mowed grass, kept plowed in winter.
- An office of at least 64 square feet: heated, fully enclosed, separate from living quarters, with a desk, 2 chairs and a filing cabinet.
- Dealers first licensed on or after January 1, 2026 must have a computer with internet access and a printer in the office.
- A heated repair area inside the building with at least 400 square feet of clear floor, a jack or lift, mechanic's tools and at least one mechanic.
- A permanently mounted sign of at least 12 square feet showing the business name, readable from 200 feet, unless a local sign ordinance conflicts.
- Posted business hours of at least 30 hours a week across at least five 6-hour days, between 6:00 a.m. and 9:00 p.m.
Zoning comes first
Keeping a Maine dealer license
Renewal and ongoing duties
Renew every year. The Bureau mails renewal packets about two months before expiration and reruns the background check. Keep the bond at the right tier for your sales, keep the insurance filing active, and pay the $1 per retail sale mediation fee at renewal. A license expired for more than 30 days needs a completely new application.
Federal rules that apply here too
- Maine uses its own used vehicle disclosure in place of the FTC Buyers Guide.
- The FTC Safeguards Rule: a written plan for protecting customer financial information.
- IRS Form 8300 when a customer pays more than $10,000 in cash.
- A federal odometer disclosure on each transfer.
Maine dealer license FAQ
The questions first-time dealers ask most.
How do I get a used car dealer license in Maine?
Apply to the Bureau of Motor Vehicles, Dealer Licensing, on form MVD-350. You need a qualifying location, a notarized zoning clearance from your town, a notarized questionnaire, a plot plan, a sales tax number, a background check on each owner, the dealer training affidavit, a surety bond and liability insurance on your plates. A Bureau detective inspects the site before the license is issued.
How much is the dealer bond in Maine?
It depends on sales. The bond is $25,000 for 0 to 50 sales a year, $50,000 for 51 to 100, $75,000 for 101 to 150 and $100,000 for 151 or more. A new dealer files a bond based on projected sales, and the Secretary of State reviews the amount every year.
How much does a Maine dealer license cost?
The state charges a $150 non-refundable initial application fee plus a $150 annual used car license fee, so $300 at first filing. Dealer plates are $20 each and the state background check is $21 per owner, officer or partner. The bond premium, insurance and your facility are separate costs.
Do I need a pre-licensing course in Maine?
Yes, but it is not a classroom course with a set number of hours. New applicants must complete the Bureau of Motor Vehicles Dealer/Title training and submit a signed training affidavit before the license is issued. The owner or an employee of the dealership can complete it.
Can I get a Maine dealer license without a car lot?
Not the standard used car dealer license. It requires an enclosed building, a 3,500 square foot display area, an office and a repair area, and a Bureau detective inspects the site. Maine also has a separate online used car dealer application (MVD-350A) that lists a $350,000 minimum bond and a $500 license fee. Confirm the details of that license with Maine BMV.
How many cars can I sell in Maine without a dealer license?
Up to 5 in any 12-month period. You need a license if you sell more than 5, if you buy vehicles to resell them, or if you advertise or display 3 or more vehicles for sale within 30 days. Vehicles you have owned and registered for at least 6 months are not counted.
Sources
- AgencyMaine BMV: Information about becoming a vehicle dealer
- AgencyMaine BMV: Who should apply to be a motor vehicle dealer
- AgencyMaine BMV: Motor vehicle dealer licensing fees
- LawMaine BMV dealer rules: Chapter 103 (amended September 2025)
- LawMaine Revised Statutes, Title 29-A, Chapter 9: Dealers
- FormMaine BMV forms: Complete Dealer Package and MVD-350
- AgencyMaine BMV: Dealer licensing requirements
Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with Maine BMV or your attorney before you sign a lease or pay a fee.
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Plan the rest of the launch
- Startup playbookWhat to settle before you apply in any state.
- Startup budget plannerAdd up inventory, the lot, licensing and a cash reserve.
- Opening-day checklistEleven things to have in hand before the first sale.
- Dealer auction sitesWhere licensed dealers buy inventory.
- Floor plan lendersHow dealers finance the cars on the lot.
- Dealer management systemInventory, deals, titles and your website in one place.
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