How to Get a Dealer License in Maryland
In Maryland, dealer licensing runs through the Maryland Motor Vehicle Administration (MVA). To get a used car dealer license in Maryland you'll need a registered business, a compliant location, a $15,000 – $150,000 (volume-based) surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Maryland auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Maryland Motor Vehicle Administration (MVA)'s current pages before you file.
- Surety bond
- $15,000 – $150,000 (volume-based)
- License term
- Dealer licenses are issued for a three-year term (not annual); renew through the myMVA Business Portal before expiration at the same fee. Salesperson licenses also run three years.
- Sales threshold
- Maryland licenses anyone engaged in the business of selling vehicles; occasional sellers disposing of their own titled vehicles are generally not dealers — confirm the current threshold with the MVA before relying on a specific number.
- Pre-licensing
- Before a license is issued, the applicant must attend the MVA's mandatory Dealer / Business Licensing Orientation, requested via the Dealer Orientation Request (CS-303). It is an MVA-run orientation session rather than classroom pre-licensing hours.
License types in Maryland
| License type | What it covers |
|---|---|
| Used Vehicle Dealer | Sale of used vehicles from a licensed lot, office, or MVA-approved location. |
| New Vehicle Dealer | Sale/display of new motor vehicles under a franchise from an MVA-licensed manufacturer. |
| Wholesale Dealer | Buying vehicles for resale exclusively to other licensed dealers — no sales to the public. |
| Motorcycle Dealer | Buying, selling, exchanging, or displaying motorcycles for sale. |
| Trailer Dealer | Buying, selling, or exchanging trailers (including boat trailers) for profit. |
| Emergency Vehicle Dealer | Dealing in police, fire, ambulance, and other authorized emergency vehicles. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Used Vehicle Dealer license fee | $900 | Three-year term (~$300/yr); same fee for new and renewal |
| Interchangeable dealer tags | $150 per tag | Used/new dealer; motorcycle $50, emergency $100 |
| Surety bond (used dealer, face amount) | $15,000 – $150,000 | Volume-based; the annual premium you pay is a small fraction, based on credit |
| Wholesale Dealer license fee | $1,050 | Three-year term; dealer-to-dealer only |
| Salesperson's license | $225 | Per salesperson, three-year term |
| Vehicle excise (titling) tax | 6.5% of fair market value | Collected at titling; minimum tax $41.60 — verify current rate with the MVA |
Step by step
- Register your entity and trade names with the Dept. of Assessments & Taxation (SDAT) and obtain a Trader's License from the Circuit Court in your jurisdiction.
- Secure a compliant location, obtain Zoning Approval (CS-053), and arrange on-site repair facilities or a repair-facility contract within 5 miles (CS-125).
- Obtain the volume-based surety bond (CS-067A) plus required liability and workers' compensation coverage, and contract with an ERT provider (all dealers except wholesale).
- Complete the Application for Vehicle Dealers License (CS-042) and Criminal Background Check (CS-011), then submit online via the myMVA Business Portal.
- Attend the mandatory MVA Dealer Orientation (request via CS-303) and pass the MVA Compliance Inspector's site inspection.
- Pay the license fees and receive your dealer license and interchangeable dealer tags.
Premises & temp tags
Location: A permanent physical location that passes COMAR requirements and an MVA Compliance Inspector site inspection. You need local Zoning Approval (CS-053), a Trader's License from the Circuit Court in your jurisdiction, and either on-site repair facilities or a written contract with a repair shop within 5 miles (CS-125).
Temp tags / plates: Maryland dealers title vehicles and issue plates and registration directly to buyers through an MVA-approved Electronic Registration and Titling (ERT) system. Temporary registration is available (including a 60-Day Temporary Registration Permit, form CS-063, with a $50 temporary registration fee).
Maryland-specific things to know
- The bond is volume-based, not flat — a small used-car lot selling under 250 vehicles a year posts only a $15,000 bond, but the requirement climbs to $150,000 above 2,500 sales.
- Every dealer except wholesalers must be on an MVA-approved Electronic Registration and Titling (ERT) system (e.g., CVR, Solera, Vitu) to title vehicles and issue plates/registration to buyers.
- You must have on-site repair facilities or a written contract with a repair shop within 5 miles (CS-125) — a location with no service arrangement fails the compliance inspection.
- Licenses run a three-year term (not annual), and the mandatory Dealer Orientation must be completed before the license is issued.
Official Maryland resources
- Maryland MVA — Dealer Licenses ↗
- MVA — Forms for Vehicle Dealers & Title Agents ↗
- myMVA Business Portal ↗
Maryland dealer license FAQ
How much does a dealer license cost in Maryland?+
Used Vehicle Dealer license fee: $900; Interchangeable dealer tags: $150 per tag; Surety bond (used dealer, face amount): $15,000 – $150,000; Wholesale Dealer license fee: $1,050; Salesperson's license: $225; Vehicle excise (titling) tax: 6.5% of fair market value. Plus the $15,000 – $150,000 (volume-based) surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Maryland?+
Maryland requires a $15,000 – $150,000 (volume-based) surety bond. Maryland's surety bond is tiered by the number of vehicles sold/projected (form CS-067A). A used-vehicle dealer posts $15,000 for 1–250 vehicles, $25,000 for 251–500, $35,000 for 501–1,000, $50,000 for 1,001–2,500, and $150,000 over 2,500. New-vehicle dealers start at $50,000.
Do you need a physical lot to get a dealer license in Maryland?+
A permanent physical location that passes COMAR requirements and an MVA Compliance Inspector site inspection. You need local Zoning Approval (CS-053), a Trader's License from the Circuit Court in your jurisdiction, and either on-site repair facilities or a written contract with a repair shop within 5 miles (CS-125).
How many cars can you sell in Maryland without a dealer license?+
Maryland licenses anyone engaged in the business of selling vehicles; occasional sellers disposing of their own titled vehicles are generally not dealers — confirm the current threshold with the MVA before relying on a specific number.
How long is a Maryland dealer license valid?+
Dealer licenses are issued for a three-year term (not annual); renew through the myMVA Business Portal before expiration at the same fee. Salesperson licenses also run three years.
Is dealer training or an exam required in Maryland?+
Before a license is issued, the applicant must attend the MVA's mandatory Dealer / Business Licensing Orientation, requested via the Dealer Orientation Request (CS-303). It is an MVA-run orientation session rather than classroom pre-licensing hours.
How do temporary tags work for Maryland dealers?+
Maryland dealers title vehicles and issue plates and registration directly to buyers through an MVA-approved Electronic Registration and Titling (ERT) system. Temporary registration is available (including a 60-Day Temporary Registration Permit, form CS-063, with a $50 temporary registration fee).
Data verified 2026-07-17. Requirements change — confirm with the Maryland Motor Vehicle Administration (MVA) before filing.
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