New York Motor Vehicle Dealer Bond
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How much does a motor vehicle dealer bond cost in New York?
New York motor vehicle dealer bond costs start at $140 for the state-required 1-year term. Your exact premium will vary depending on the bond amount required for your dealer license type. Your free quote will be provided after a quick application underwriting review.
How do you get a New York auto dealer bond?
You can apply for your New York auto dealer bond online 24/7 through our safe and secure application portal. You must provide the following information for Department of Motor Vehicles approval.
- dealer name
- dealer address
- type of vehicles to be sold (used or new)
- number of vehicles sold in the previous year
- facility number, if an existing dealership
Once your order has been processed, you'll receive your official auto dealer surety bond by email.
How fast can I get a motor vehicle dealer surety bond?
Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver your official New York auto dealer surety bond faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed auto dealer bond delivery.
What is a New York motor vehicle dealer bond?
New York Vehicle and Traffic Law Section 415(6-b) requires individuals file a surety bond for the auto dealer license registration process. The state-required form is officially titled the "Dealer Bond Under New York State Vehicle and Traffic Law Section 415(6-b)," but it's more commonly known as a "motor vehicle dealer bond" or just "auto dealer bond."
The bond form specifically requires individuals do the following when operating their dealerships.
- Pay all valid bank drafts for customer vehicle purchases
- Transfer valid titles for all vehicles
- Maintain - and keep safe - customer deposits for their motor vehicle sales
- Pay all fines required by the Commissioner of Motor Vehicles
- Repay any overcharges related to a customer's vehicle registration and titling
What is the purpose of the New York auto dealer bond?
By filing this bond, a dealership agrees to follow New York state law when selling or trading vehicles. The bond protects any person - including the state - from financial loss if they've obtained a court judgment against the dealership. The surety company will pay valid claims up the the full bond amount, which the bonded dealer must then reimburse.
Who regulates auto dealer licensing?
The New York State Department of Motor Vehicles enforces license and bond requirements for motor vehicle dealers working in the state.
Who needs an auto dealer bond in New York?
Requirements vary depending on the dealer license type needed.
- $20,000 bond: applicants who sold 50 or fewer vehicles in the previous calendar year
- $50,000 bond: new franchise applicants who sell cars, SUVs, light trucks, etc.
- $100,000 bond: applicants who sold more than 50 vehicles in the previous calendar year
Dealers who only sell trailers, motorcycles, ATVs, boats, snowmobiles, or vehicles over 10,000 pounds do not need a surety bond.
Please note this page is for vehicle dealer licensing. If you need to register a vehicle without a title, you need a New York certificate of title bond. If you broker vehicles for consumers, you need a New York automobile broker bond.
How do New York auto dealers file your bond?
You'll file your license application and surety bond with the New York Department of Motor Vehicles Bureau of Consumer & Facility Services.
New York Department of Motor Vehicles
Bureau of Consumer & Facility Services
Application Unit
P.O. Box 2700
Albany, New York 12220-0700
How do I update or change my bond form?
If the New York DMV requires you to update information on your bond form, contact your surety provider. If you purchased your NY motor vehicle dealer bond from SuretyBonds.com, email [email protected] to explain the needed change.
The most common changes requested are the dealership's name or address.
How do I renew my dealer bond?
You must renew your automobile dealer license bond before its current term expires. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be emailed to you so your license remains active for its next term.
How do dealers apply for a motor vehicle dealer license in New York?
You must submit the following with your dealer license application packet.
- original facility application
- New York surety bond in the correct required amount
- proof of permission to use the business location
- sales tax ID and certificate of authority
- proof of workers compensation insurance
- photocopy of government issued photo ID
- purchase receipts for your dealer's starter kit and signs
- check payable to the Commissioner of Motor Vehicles for required fees
- filing receipt (corporation or LLC) or business certificate (individual using assumed name or partnership)
If the state DMV approves your application, your regional office will contact you to schedule an on-site investigation.
Have Questions?
Call 1 (800) 308-4358 to talk with a Surety Expert today.
