A person is "engaged in the business of buying, selling, exchanging, offering to negotiate, negotiating, or advertising the sale of vehicles" if that person:
- buys vehicles for the purpose of resale;
- sells more than five vehicles in any 12-month period; or
- advertises, in any form, three or more vehicles for sale or displays three 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 six 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 an application form (PDF) prescribed by the Secretary of State and by paying the necessary fee.
The application must contain:
- the applicant's name,
- type of business organization,
- place of business,
- 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 (PDF) must be completed and submitted. Also include: a lease for one year (sample lease (PDF)), a plot plan (PDF) of the place of business, partnership or corporation papers, and a sales tax number.
An inspection will be conducted by a Motor Vehicle Detective 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 (PDF) 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 dealerlicensing.bmv@maine.gov.