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New York Vehicle Dealer Bond

How much will my motor vehicle dealer bond cost?

New York used motor vehicle dealers will see their bond amounts increase with the passage of new legislation. AB 8166 was passed in September 2016 and will take effect on April 8th, 2017. Read more about the changes on the Surety Bond Insider.

If you are a new or used retail or wholesale motor vehicle dealer, you must post a surety bond. The bond amount you are required to post is based on the amount of vehicles sold in last calendar year.

Used motor vehicle dealers that sold 200 or fewer vehicles during the previous year must post a bond in the amount of $10,000.

Used motor vehicle dealers that sold more than 200 vehicles during the previous year must post a $25,000 surety bond.

Dealers who sell new motor vehicles are required to post a bond in the amount of $50,000.

All bonds are subject to underwriting. This means that bond premiums are determined by the financial credentials of your credit report.

Be sure to have your facility number at hand when speaking with a surety specialist.

Not-so-stellar credit? No problem! We offer a bad credit program specifically for you! See how much you could pay for your bond by sending a bond request.

Bond Type Bond Amount Cost by Credit Score*
680 and up 679 - 600 599 or lower
Used Motor Vehicle Dealer Bond 200 or fewer vehicles sold $10,000 Starts at $100 $200-1,000 $1,000+ Apply Now
Used Motor Vehicle Dealer Bond 200 or more vehicles sold $25,000 Starts at $250 $250-2,000 $2,000+ Apply Now
New Motor Vehicle Dealer Bond $50,000 Starts at $500 $500-4,000 $4,000+ Apply Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

Excellent credit? You could qualify to pay as low as 1% of your bond amount! Complete a bond request or give us a call at 1 (800) 308-4358 to facilitate the bonding process and receive a free quote with no obligations!

Why do I need this bond?

By posting a bond, the principal (dealer) guarantees to conduct business in full compliance with the Vehicle and Traffic Law section 415(6-b). This includes:

  • 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?

This specific bond type will remain continuous unless canceled by the surety. 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 deemed 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

Don’t wait to sell motor vehicles. Apply here for your bond!

Ready to get started?

Get a FREE Vehicle Dealer Bond Quote Today!

Additional Resources

New York State Department of Motor Vehicles Dealer Bond Under New York State Vehicle and Traffic Law Section 415(6-b)

New York State Department of Motor Vehicles Original Facility Application

Motor Vehicle Dealers & Transporters Regulations

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