Business Licenses for Used Vehicle Dealers

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Before you begin

If you buy, sell, or offer used vehicles for sale in Maryland, you must be licensed as a used vehicle dealer by the Maryland Motor Vehicle Administration (MVA).
You may not operate without a valid license.

Who needs a used vehicle dealer license

You must have a used vehicle dealer license if you:

Sell or offer used vehicles for sale
Buy vehicles to resell for profit
Display used vehicles for sale
Advertise yourself as a used vehicle dealer

This includes sales at a lot, an office, or another approved business location.

Requirements & responsbilities

Surety bond requirement

Before your used vehicle dealer license can be issued, you must file a surety bond as required by the Maryland Transportation Article. The bond must:

Be issued by a surety company authorized to do business in Maryland
Be payable to the State of Maryland
Remain active for the entire time you are licensed

You must maintain continuous bond coverage at all times. If your bond is canceled, expires, or becomes invalid, your license may be suspended or revoked and you may not legally operate.

If state law changes, the required bond amount will follow the Maryland Transportation Article.

Business location requirements

Your dealership must have an established place of business that meets MVA requirements. Your location must:

Meet local zoning laws
Have a permanent office structure
Display required signage
Pass any required inspection

You may not operate from a temporary location, an unapproved address, or a residence (unless specifically approved).

Dealer responsibilities

As a licensed used vehicle dealer, you must:

Follow the Maryland Transportation Article
Submit accurate title and registration documents
Provide proper disclosures to customers
Maintain required records
Follow all MVA regulations

Violations may result in civil penalties, suspension, or revocation of your license.

How to apply for a used vehicle dealer license

Step 1: Complete the application

Fill out the official used vehicle dealer license application. Make sure all information is complete and accurate — incomplete applications may delay processing.

Step 2: Obtain a surety bond

Secure a $50,000 surety bond from an authorized surety company. You'll need to submit the original bond with your application.

Step 3: Gather required documents

You may need to submit:

Proof of business location
Zoning approval
Business formation documents (LLC, corporation, etc.)
Original surety bond
Any additional documents required by the Business Licensing and Compliance Division

Step 4: Submit the application & fees

Mail or deliver your completed application, bond, supporting documents, and fees to:

Business Licensing and Compliance Division
Maryland Motor Vehicle Administration
6601 Ritchie Highway, N.E.
Glen Burnie, MD 21062

Fees are nonrefundable.

Do not begin operating until your license has been approved.

How to renew your license

Used vehicle dealer licenses must be renewed as required by the MVA.

To renew, you must submit renewal paperwork, pay renewal fees, and maintain an active $50,000 surety bond

If your license expires, you may not operate.

Need help?

Contact the Business Licensing and Compliance Division at 410-768-7000.

We are here to help you understand the requirements.