Who Must Apply for a Dealer License and How?

A person is "engaged in the business of buying, selling, exchanging, offering to negotiate, negotiating or advertising the sale of vehicles" if that person:

  1. Buys vehicles for the purpose of resale;
  2. Sells more than 5 vehicles in any 12 month period; or
  3. Advertises, in any form, 3 or more vehicles for sale or displays 3 or more vehicle for sale within a 30 day period on premises controlled by that person.

Vehicles owned and registered by that person for at least 6 months are not included for purposes of this definition.

A person that is "engaged in the business of buying, selling, exchanging, offering to negotiate, negotiating or advertising the sale of vehicles" must apply for a Dealer license by filing with the Secretary of State an application form prescribed by the Secretary of State and by paying the necessary fee. The application must contain the applicant's name, type of business organization and place of business. Also included are the qualifications and business history of the applicant (partners and/or officer/directors) and any criminal offenses within the past five years against the applicant(s). A Land Use Regulatory/Town Zoning form must be completed and submitted. A lease for one year (sample lease), if applicable, a plot plan of the place of business, partnership or corporation papers and a sales tax number. An inspection will be conducted by a Motor Vehicle Investigator at the business location. Prior to licensing, a dealer must have garage liability insurance and a surety bond guaranteeing the title and mileage on any vehicle sold by the business.

Grounds for denying a dealer license are material misstatement on the application for license, failure to comply with the requirements to obtain/maintain the license, failure to have an established place of business, not notifying the state 30 days prior to moving locations, not maintaining a surety bond or liability insurance, defrauding a customer, conviction of any fraudulent act connected with the dealer business, violating the Maine Unfair Trade Practices Act, submitting a check which is dishonored/refused upon presentation, and failure to appear at a hearing.

You may contact the BMV Dealer Section with questions or comments at: (207) 624-9000 ext. 52143 or by Email: dealerlicensing.bmv@maine.gov