- License Commission
- Car Dealer Licenses
Car Dealer Licenses
Any person who is a recognized agent of a motor vehicle manufacturer or a seller of motor vehicles made by such manufacturer whose authority to sell the same is created by a written contract with such manufacturer or with some person authorized in writing by such manufacturer to enter into such contract, and whose principal business is the sale of new motor vehicles, the purchase and sale of second hand motor vehicles being incidental or secondary thereto, may be granted an agent's or a seller's license (Class I).
Class I Car Dealer licenses are issued on an annual basis with a fee of $200.
A person whose principal business is the buying or selling of second hand motor vehicles, a person who purchases and displays second hand motor vehicles for resale in retail transactions, and any other person who displays second hand motor vehicles not owned by him pursuant to an agreement in which he receives compensation, whether solely for displaying the vehicles, upon the sale of each vehicle, or otherwise.
Class II licenses require a Surety Bond in the amount of $25,000. The bond shall be for the benefit of a person who purchases a vehicle from a Class II licensee, and who suffers any loss of account.
Class II Car Dealer licenses are issued on an annual basis with a fee of $175.
A person whose principal business is the buying of second hand motor vehicles for the purpose of remodeling, taking apart or rebuilding and selling the same, or the buying or selling of parts of second hand motor vehicles or tires, or the assembling of second hand motor vehicle parts may be granted a motor vehicle junk license (Class III).
Class III Car Dealer licenses are issued on an annual basis with a $150 fee.
There are three different types of car dealer licenses, Class I for new car dealers, Class II for used car dealers, and Class III for junk/salvage car dealers. Mass. General Law Chap. 140 §58 details these license classes.