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Used car lot

Used Car Dealer Class I/II/III License

License Commission

Used Car Dealer Class I, II, III Licenses are issued by the Cambridge License Commission and governed by Massachusetts General Law ch. 140 sec. 57-59. It takes approximately four to six weeks to process licenses.

License Classes

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.

Click here for the Massachusetts General Law description of the license classes.

In addition to the License Process with the City of Cambridge, Used Car Dealers must also obtain:

Surety Bond

A MA Used Vehicle Dealer Bond (also known as an MA Motor Vehicle Dealer Bond or MA MVD Bond) is a requirement to get a Used Car Dealer License. A Massachusetts MVD Bond protects your customers from fraud or misrepresentation during a business transaction.

The state of MA has set the bond amount at $25,000. This is not the price you'll pay for your bond though. Instead, you will pay a portion of this amount, based on your credit history and personal financial strength.

Dealer Plates

Each used car dealer shall apply for and obtain dealer plates from the Registry of Motor Vehicles within 30 days of obtaining an initial license. Copies of current dealer plate registrations shall be filed with the City Clerk's Office, upon receipt of the original registration and/or registration renewals.

Apply for a Used Car Dealer Class I II III License

Page was last modified on 7/24/2023 8:08 PM
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