How much will my New York motor vehicle dealer bond cost?
Whether you are applying as a new or used retail or wholesale motor vehicle dealer, you must purchase a surety bond before your license will be issued. The amount of your bond is based on the amount of vehicles sold in last calendar year:
- Used motor vehicle dealers / 50 or fewer vehicles sold = $20,000 surety bond
- Used motor vehicle dealers / 51+ vehicles sold = $100,000 surety bond
- New motor vehicle dealers = $50,000 surety bond
All dealer bonds are subject to underwriting, meaning that an underwriter will determine the cost of your bond by reviewing your financial credentials. It is also important to have your facility number at hand when contacting a surety specialist.
Are you an automobile broker in need of a bond? Visit our New York automobile broker bond page for more information.
Why are motor vehicle dealers bonded?
By posting a bond, the principal (dealer) guarantees to conduct business in full compliance with the Vehicle and Traffic Law section 415(6-b). The following are examples of vehicle dealer responsibilities:
- paying all valid bank drafts
- transferring good titles to each sold vehicle
- maintaining all customer deposits
- paying all fines imposed by the Commissioner of Motor Vehicles
- repaying any overcharges of a customer
Apply for your bond today! Send a bond request and one of our bonding experts will contact you within one business day.
What’s the fine print?
Motor vehicle dealer bonds are issued to run continuously until canceled. If the surety chooses to cancel a bond, a written cancellation notice must be mailed to the Commissioner of Motor Vehicles 60 days prior to the proposed cancellation date.
How to become a motor vehicle dealer in New York
Both new and used motor vehicle licensees must complete the original facility application (Form VS-1) and send it to the Department of Motor Vehicles. Each application must be accompanied by the following documents:
- surety bond (Form VS-3)
- application and business fees
- MV-50 fees
- Certificate of Authority (NYS Department of Taxation and Finance DTF-17A)
- business location documents
Please note this page is for vehicle dealer licensing. If you have lost or need to obtain a vehicle title, a New York certificate of title bond is required.
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