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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).
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.
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.
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.
Not more than one unregistered motor vehicle or trailer which is unfit for use, permanently disabled or has been dismantled, or are otherwise inoperative, shall be stored, parked or placed upon any land in the Town for more than 30 days, unless such vehicle is kept within a building or is otherwise screened or located so that it cannot be seen from a public highway or from abutting property. Vehicles which are kept in an area properly approved for such storage by a licensed junk dealer or a licensed dealer in motor vehicles are exempted from these regulation. Farm vehicles are also exempt.
NEW CLASS II APPLICANTS: New applicants, please download the application and open in Adobe; fill in the document, print and sign the application. Using the checklist below, return all required items to the Selectmen's Office or drop in the Drop Box outside the Municipal Center.
Please allow at least three weeks for processing. The Board of Selectmen meet the 1st and 3rd Tuesday of each month. All applications must be reviewed by other Boards / Committees / Departments. The review process will take about two weeks. Once reviewed; the application will be placed on the Board of Selectmen’s next agenda.
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Requirements
$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.
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.
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.
Zoning by-Law 6.2 - Unregistered Motor Vehicles
Not more than one unregistered motor vehicle or trailer which is unfit for use, permanently disabled or has been dismantled, or are otherwise inoperative, shall be stored, parked or placed upon any land in the Town for more than 30 days, unless such vehicle is kept within a building or is otherwise screened or located so that it cannot be seen from a public highway or from abutting property. Vehicles which are kept in an area properly approved for such storage by a licensed junk dealer or a licensed dealer in motor vehicles are exempted from these regulation. Farm vehicles are also exempt.
NEW CLASS II APPLICANTS: New applicants, please download the application and open in Adobe; fill in the document, print and sign the application. Using the checklist below, return all required items to the Selectmen's Office or drop in the Drop Box outside the Municipal Center.
Please allow at least three weeks for processing. The Board of Selectmen meet the 1st and 3rd Tuesday of each month. All applications must be reviewed by other Boards / Committees / Departments. The review process will take about two weeks. Once reviewed; the application will be placed on the Board of Selectmen’s next agenda.
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Documents
RELATED DOCUMENTS:
- Class II License New Application Checklist (PDF)
- Class II License Application (Fillable PDF)
- CORI Acknowledgement w-Notary Page (PDF)
- MA State WC Affidavit (pdf fill-able)
- Douglas Emergency Contact Information Form (pdf fill-able)
- The Massachusetts Used Vehicle Warranty Law (PDF)
- Unlicensed Motor Vehicle Sales Finance Companies Letter - Division of Banks and RMV (PDF)