National Independent Automobile Dealers Association
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Dealer Bond And Licensing Information » Massachusetts


Class II dealers must post $25,000 bond.

Dealer License

Required for persons principally engaged as dealers (see class listing for specific re­quirements). Dealers must have a separate business office on the premises, maintain a Used Car Record Book approved by the Registry of Motor Vehicles, and post a sign displaying the type of business. Watercraft dealers must have a fran­chise letter from the manufacturer, a sign indicating the type of business and a separate place of business. Dealer Li­censes are issued from the local City Hall; the Boston Police Department issues licenses for dealers based in the city of Boston .

Licenses are issued for the following dealer classes:

Class I - New and/or used vehicle dealer (business license required).
Class ll - Used vehicle dealer (business license required).
Class lll - Salvage parts/Junk (business license required).

Owner/Contractor - Must have ten vehicles (one of which is special mobile equipment - SME), and garage to work in (business license required). Owner/contractor plates may be issued to: government agencies for public safety uses; persons engaged in leasing storage or mobile office trailers; persons engaged renting or leasing vehicles or trailers to the public (fleets of 20 or more).

Contact the Massachusetts Independent Automobile Dealers Association for additional information.