Used vehicle dealers in the State of Massachusetts are required to submit a $25,000 surety bond as part of their licensing requirements. Massachusetts General Law grants licensing authority to individual cities and towns throughout the state, and is not handled by the Massachusetts Registry of Motor vehicles. Applicants should contact the municipality where they wish to conduct business for more information.
This surety bond protects individuals who suffer damages due to the principal’s (used car dealer) unethical and unlawful behavior, and guarantees the principal complies with the provisions of Chapter 140, Section 58 of the General Laws, as amended by Chapter 422 of Acts of 2002. Massachusetts dealer bonds are continuous and remain in effect unless violated or canceled by the surety. The surety must give written notice of 30 days prior to the effective date of termination.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.