How much does an auto dealer or dismantler bond cost in New Mexico?
The New Mexico Motor Vehicle Division requires motor vehicle dealers and dismantlers to post a $50,000 surety bond to legally conduct work within the state.
These bonds are subject to underwriting consideration, so the amount you’ll pay depends on a review of your personal credit report. Bad credit? Don’t worry! SuretyBonds.com offers an exclusive bad credit bonding program through which we approve 99% of applicants for the bonds they need.
Why do I need this bond?
New Mexico vehicle dealer and dismantler bonds are put in place to ensure that principals (dealers/dismantlers) comply with all of the provisions stated in Section 66 - 4 - 7, NMSA 1978 Comp and all amendments thereto. If the principal fails to comply with these terms, a claim can be filed against the bond. If the claim is found valid, the surety will cover damages suffered by harmed parties up to the full penal sum of the bond. The principal, in turn, must reimburse the surety for damages paid out.
What’s the fine print?
New Mexico auto dealer/dismantler bonds are continuous in form and remain in full force and effect until they are canceled or expire. These bonds run concurrently with the dealer’s license, which expires annually on March 31. Proof of the bond must be submitted to the Motor Vehicle Division prior to license renewal each year.
The surety can cancel the bond at any time by serving notice in writing to the Director of the Motor Vehicle Division. Cancellation goes into effect 30 days after the director receives the notice.
This bond form is also used for motorcycle dealers, who must post a $12,500 surety bond to work within the state.
How to become a motor vehicle dealer or dismantler in New Mexico
All application forms must be obtained from the New Mexico Division of Motor Vehicles. Each application must be accompanied by a surety bond, a written oath and all necessary fees.
Complete licensing information can be accessed from the Additional Resources section of this page.