New Mexico Vehicle Dealer or Dismantler Bond Overview
- Purpose: To protect consumers from wrongdoing by auto dealers and dismantlers
- Who Needs It: All vehicle dealers and auto recyclers in New Mexico
- Regulating Body: The New Mexico Motor Vehicle Division
- Bond Amount: $12,500 or $50,000
- Minimum Rate: 0.75%, credit-based
What Is a New Mexico Vehicle Dealer or Dismantler Bond?
This bond ensures vehicle dealers and dismantlers uphold New Mexico laws and operate ethically. The New Mexico Motor Vehicle Division (MVD) requires a dealer or dismantler bond as financial security for license applicants.
What Are the Bond Coverage Requirements?
Your New Mexico dealer or dismantler bond amount will depend on your license type.
- Dealer: Buys, sells or trades more than four motorcycles or vehicles per year
- Dismantler/Recycler: Buys vehicles to break down for scrap metal or to sell used parts
| License Type | Bond Amount |
|---|---|
| Motorcycle Dealer | $12,500 |
| All Other Dealers | $50,000 |
| Dismantler | $50,000 |
How Much Do Vehicle Dealer Bonds Cost in New Mexico?
The $50,000 dealer or dismantler bond starts at $400. If you’re a motorcycle dealer, the $12,500 bond starts at $100.
Your exact cost will depend on your personal and business financials. We’ll run a soft credit check to determine your personalized rate. Apply for your quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a NM Dealer or Dismantler Bond Work?
Like all surety bonds, a New Mexico dealer or dismantler bond creates a three-party contract.
| Bond Party | Description |
|---|---|
| Principal | The vehicle dealer or dismantler purchasing the bond |
| Obligee | The New Mexico Motor Vehicle Division requiring the bond |
| Surety | The issuing surety provider |
By filing this bond, you promise to uphold all New Mexico auto dealer and recycler laws. If you commit fraud, theft, or deceit, harmed parties can file bond claims. The surety will pay valid claims up to the full bond amount. However, you’re responsible for reimbursement.
How Do I Get Bonded?
If you’re ready to start the bonding process, simply fill out the New Mexico dealer bond quote request form. You’ll need to provide some personal and company information, such as:
- Dealer/dealership name, including any applicable DBA
- Dealer/lessor/retailer service address
- Dealer license number, if available
We’ll run a quick credit check and send you the exact price within one business day. Once you receive your official bond form, be sure to file it with the MVD.
How Soon Can I Get My Bond?
Need your bond as soon as possible? We offer overnight, two-day and three-day FedEx shipping. Rates range from $20–$40.
Can I Get Bonded With Bad Credit?
Yes, you might still be able to get bonded, but you’ll likely pay a higher premium. Read our bad credit bonding guide to learn more or apply for a free quote.
How Do I Renew My Auto Dealer Bond?
New Mexico auto dealer bonds expire after one year. We’ll send you an invoice 90 days before your bond expires, along with periodic reminders leading up to the renewal date.
Note that if you don’t pay your premium by the expiration date, your bond will lapse and you won’t be able to operate.
How Do I Update My Bond Form?
Your bond form can typically be updated through a bond rider document from the surety provider. Email [email protected], and we’ll make any changes if possible.
How to Become an Auto Dealer or Dismantler in New Mexico
The New Mexico Motor Vehicle Division licenses all auto dealers and dismantlers/recyclers. You must submit separate applications and renewals for both licenses, even if you’re operating as one business.
Apply online through the MyMVD Partner Portal and upload the following materials:
- Business ownership documents and identification numbers
- City/county business license, zoning certification and property lease
- Surety bond form
- Pictures of the business site and signage
- Pre-Licensing Education Certificate (used vehicle dealers only)
- Payment for the $50 fee
Dealer and dismantler licenses expire annually. You’ll renew and make any changes through the same online account.
How Much Does It Cost to Become a Car Dealer in NM?
You can expect to pay at least $510 to get your dealer license. Fees include:
| Fee | Amount |
|---|---|
| Application | $50 |
| Surety Bond | $375+ annually |
| Business License | 〜$35–$50 |
| Renewal | $50 |
While the state doesn’t require general liability insurance, many lenders and landlords do. Operating without insurance puts your dealership at risk if vehicles or people are harmed.
