If you are a Motor Vehicle Dealer or Broker in the state of New York, you need to apply for a license through the New York State Department of Motor Vehicles (NYDMV) and obtain a New York Dealer Surety Bond. Any used motor vehicle dealer, qualified dealer, wholesale dealer, new motor vehicle dealer or transporter must be licensed. This includes dealers that sell passenger vehicles, light trucks, suv's, motorcycles, trailers, used cars, recreational vehicles (RV's), heavy trucks, boats, yachts, and atv's. New (franchise) dealers are exempt from licensing if they sell only atv's, boats, motorcycles, snowmobiles, trailers, and vehicles over 10,000 pounds.
Obtain a surety bond based on the number of vehicles a dealer anticipates selling in a calendar year or if the application is for a new dealer (franchise dealer):
After obtaining the above, complete the application, pay the license fee for an initial review of the application package.
Prior to submitting an application obtain a Certificate of Authority from the New York State Department of Taxation and Finance, obtain proof of your business name if you are a corporation or limited liability company, or a partnership or individual using a dba or trade name, and obtain workers compensation insurance.
Secure a business location that has: permanent signage (red background with white lettering, 3' x 2', that has your facility number in 2" block lettering) visible from the street, a display area, a mailbox for your business only, a locked filing cabinet for record keeping, heat, electricity, chairs and a desk, a business phone. An on-site visit from the department will be scheduled after the application is submitted.
The premium you pay for a New York Motor Vehicle Dealer or Broker Surety bond is dependent on credit, the bond amount required and experience in the motor vehicle industry. Our rates start at $100 for bonds $10,000 and under with good credit. For bond amounts over $10,000, dealers who only sell used vehicles start at 1.25% of the bond amount with good credit. Dealers who sell new and used vehicles or only new vehicles have rates starting at 1% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote.
The New York Department of Motor Vehicles will now make available an online VERIFI system-Dealer Management System
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
For a downloadable application