Annual Class 2 Auto License

License - Class II License - Second Hand Vehicles

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, may be granted a used car dealer’s license and shall be subject to the conditions as outlined in MGL c140(58).

REQUIREMENTS:

1.)  $25,000 BOND: Per MGL c140(58), the license holder must obtain a bond, or equivalent proof of financial responsibility, executed by a surety company authorized by the insurance department to transact business in the commonwealth.

2.)  Motor Vehicle Sales Finance Company License: Per MGL c255B, any dealership that hold retail installment contracts must be licensed as a motor vehicle sales finance companies by the Division of Banks.  These licensing requirements apply anytime the purchase of a vehicle is financed in two or more installments, regardless of whether interest is charged on the loan. 

3.)  Repair Facility Association:  Per MGL c90(7N1/4), proof of association with a repair facility in the form of a contract, if repair work is not done by the seller.