Who licenses auto dealers in Maine?

The Maine Bureau of Motor Vehicles Dealer Section licenses new, used, and other types of auto dealers in the state.

What kind of business location is required for a Maine dealer license?

You must operate from a permanent business location with an office, display area, and appropriate signage, and you must meet local municipal requirements.

Do Maine dealers need a bond and insurance?

Yes. Maine requires a dealer bond and liability insurance as part of the licensing and renewal process.

Maine Used Vehicle Dealer License Requirements – 2025 Overview

To sell vehicles regularly in Maine, you must obtain a dealer license from the BMV Dealer Section. This page outlines common requirements for used car dealers; specialized license classes such as recyclers and heavy trailer dealers have additional rules.

Important: This is a general summary only. Always confirm the latest requirements, forms, and fees on the official state web pages before applying.

1. Who licenses dealers in Maine?

The Maine Bureau of Motor Vehicles (BMV) Dealer Section licenses new, used, wholesale, and other motor vehicle dealers statewide.

Regulator: Maine Bureau of Motor Vehicles – Dealer Section
Official dealer licensing site: https://www.maine.gov/sos/bmv/motor-vehicle-dealer-licensing

2. Common dealer license types

Maine issues a variety of dealer license types, including:

New and Used Car Dealer
Motorcycle Dealer
Equipment or Heavy Trailer Dealer
Recycler, Loaner, Transporter, and Auction licenses

3. Education, background checks, and key people

Applicants must complete criminal history and background disclosures as part of the dealer license application.
All owners and certain managers are reviewed by the BMV for prior violations and financial responsibility.

4. Business location, office, and sign

Maine requires an established place of business that typically includes:

A permanent business location in Maine where the dealership operates.
An indoor office space where records are stored and customers can complete paperwork.
A display area or lot for vehicles offered for sale.
Permanent signage visible from the roadway, clearly showing the dealer’s trade name.
Evidence of local approval such as municipal business registration or zoning sign‑off.

5. Business entity, bond, and insurance

5.1 Business registration and tax

Register your business with the appropriate municipality and, if needed, with the Maine Secretary of State.
Obtain an IRS Employer Identification Number and a Maine sales tax number from Maine Revenue Services.

5.2 Maine auto dealer bond and insurance

Maine dealers must provide a dealer bond (auto dealer bond) in an amount specified by the BMV for the license class.
Maintain liability insurance for dealer plates and operations; proof of insurance is filed with the application and at renewal.

6. High-level application steps

Choose the appropriate license type (for example, new & used car dealer) and review the BMV dealer application instructions.
Register your business at the municipal level and obtain state tax IDs.
Secure a compliant place of business with office, display area, and signage.
Arrange your Maine auto dealer bond and liability insurance.
Complete the Application for a Dealer License (MVD‑350) and attach all requested documents and fees.
Submit the packet to the BMV Dealer Section and prepare for inspection or follow‑up questions.

7. After approval: ongoing compliance

Dealer licenses, plates, bond, and insurance must be renewed according to BMV schedules.
Maintain detailed records of all vehicle purchases, sales, titles, and plates for the retention period specified in Maine law.
Notify the BMV of changes in business location, ownership, or trade name.
Comply with Maine and federal rules on advertising, disclosures, and title processing.