Get Your Dealer License in Maryland

Disclaimer: Be sure to read the requirements to understand what is required of you before and after your license is approved. 

Step 1: Attend a Dealer Orientation

Before a license can be issued, you must attend a dealer orientation. Please complete the request and submit to the Business Licensing and Consumer Services Division. The orientation is held monthly from 9:00 a.m. – 12:00 noon. All applicants will be scheduled for the next available class.

Step 2: Location - (need 1st and last month usually)

Your location must have the following requirements:

• Desk
• Chair
• Locking File Cabinet 
• Telephone * (preferably a landline)
• Sign (required for Retail, Tag & Title, may NOT use MVA logo or state seal)*
• Lighting
• Heat
• Electricity (NO generator, must be hard-wired)
• Space to display ten (10) vehicles
• Either a space for repairs or a contract with a Repair Facility

Note: Be sure the location is in compliance with all state, county and municipal zoning regulations and ordinances before signing the lease agreement.

To find a location, resources include the commercial real estate section on Craigslist, real estate agents experienced in commercial property & zoning and other auto dealers. Here is how you find out where other dealers have leased space.

Step 1: Search cars for sale on Craigslist by dealers.

Step 2: Take the phone number from the Craigslist listing and search it on the internet.

Step 3: Take the address of the dealer and search to find the office complex or warehouse that allows auto dealers.

Step 4: Last step is to contact the landlord for any vacancies.

Step 3: Bond - $15,000 for up to 250 cars

I describe a Bond as an insurance policy for your customers. You only pay a percentage of the Bond amount. That percentage is based on your credit score with the most favorable rates for those with 680 score or higher in my experience. 

The bond requirement is $50,000 for the 1st established showroom and $25,000 for each additional.

Step 4: Liability Insurance

You must maintain Garage liability insurance. The details about the policy were not immediately clear. Be sure to review all the used dealer requirements.

Step 5: Incorporation & EIN 

To apply for your Employer Identification Number (EIN), visit the IRS website. It's FREE to apply.

 You may need these numbers: NAICS Code for Used Car Dealers 441120 and SIC Code 5521.

Step 6: Gather all these Documents

• ERT Contract – All new licensees are required to contract with an Electronic Registration and Titling (ERT) provider. A copy of your ERT contract is required to be submitted along with your completed application. For vendor contact information please visit http://www.mva.maryland.gov/Business-Services/ert.html
• Criminal Background Check – All applicants/licensees must submit a Criminal Background Check. If you live or have lived in another state within the last year, you must provide a criminal record from that state in addition to the Maryland record check.
• Surety Bond of Vehicle or Trailer Dealer (CS-067A). The bond required is based on the number of vehicles you sold/ projected to be sold. The bond must be in the full name of the dealership including any trade name. It must reflect the full name of all officers, partners, or owners exactly as shown on the application.
• Workers’ Compensation – If you have Workers’ Compensation Insurance, complete information requested on the Application for Vehicle Dealers License in the appropriate section. If you are claiming exemption from providing Worker’s Compensation Insurance for your employees, please contact the Workers’ Compensation Office at 410-864-5100 or visit their website at www.wcc.state.md.us to obtain information and the appropriate forms for businesses who do not provide this type of coverage.
• Trader’s License (copy) – A copy of the trader’s license obtained from the Circuit Court in the jurisdiction where your business is located is required.
• Use and Occupancy Permit – Is required by applicants using a trailer as an office.

Step 7: Schedule a Site Inspection

To schedule your site inspection, please contact MVA Investigation Division at 410-768-7216. Submit the documentation of a successful inspection with your application. 

Step 8: Submit Your Application

Complete the application form found here .

Send your completed application to:

MVA, BL&CS, Room 146

6601 Ritchie Highway Glen Burnie, MD 21062

Step 9: Get a Mentor! The learning curve is 2 years. Take the shortcut and be profitable faster.

You can have knowledge and experience at your side to give you that 20/20 hindsight vision. Go to the Auto Dealer Business School to learn how you can level up with a mentor.

NOTE: If any links give you trouble, report them to me...lol.. Email me at [email protected]