To open your own car dealership in Massachusetts, you’ll need to get a Massachusetts Vehicle Dealer License.
Not sure if you need a dealer license? Check out this post on selling cars without a license.
Short on time? Read our Motor Vehicle Dealer License FAQ
How to get a Massachusetts Used Motor Vehicle Dealer License
Step #1: Complete Forms
- Zoning Application Form
- Articles of Organization
- Purchase and Sale Agreement
- Lease Agreement (if applicable)
- Workers’ Compensation Insurance Affidavit
Massachusetts Car Dealer Licenses are mandated by state law, but issued by local municipalities. To obtain the forms required, contact your local municipality office.
Step #2: Purchase a $25,000 MA Used Motor Vehicle Dealer Bond
Purchase a bond from a licensed surety bond company.
An MA Used Vehicle Dealer Bond (also known as an MA Motor Vehicle Dealer Bond or MA MVD Bond) is a type of surety bond that you must get before you can be issued an MA Dealer License.
A Massachusetts MVD Bond protects your customers. If they feel you are not conducting ethical business, they can make a claim against your bond.
In short, insurance protects your business, while a surety bond protects your customers.
Cost of the bond
You will not need to pay $25,000 to get bonded. You will pay a small percentage of this amount.
The price you pay (called the bond premium) is a one-time payment (not monthly). The only time you would need to pay monthly for your surety bond is if you choose to finance your bond. Generally, financing is only available on premiums that are over $1,500.
To see what you’d pay for your bond, get a free quote below:
Once you purchase your bond, the surety bond company will mail it to you.
You will need to include the original bond in your license paperwork.
Step #3: Mail paperwork
Send your Massachusetts Dealer License Application and original Massachusetts Motor Vehicle Dealer Bond to your local municipality.
You will also need to pay a registration fee. Municipalities can set the registration price for your MA Dealer License, as long as it does not exceed $200 per year.
Step #4: Wait for a decision to be made
It could take up to 2 months for your MA Dealer License forms to be processed and approved.
The best way to avoid delays in the licensing process is to fill out your Massachusetts dealer license application completely and make sure you sign pages that require signatures.
You can learn more about dealer licensing on the Massachusetts Registry of Motor Vehicles website.
View our free ebook for more information about how to get licensed: