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New York Motor Vehicle Dealers Need A Bond For Licensing

A happy customer smiles while testing a car at a New York motor vehicle dealer

If you are a Motor Vehicle Dealer in the state of New York, you need to apply for a license through the New York State Department of Motor Vehicles and obtain a New York Motor Vehicle Dealer Bond. Any dealer, qualified dealer or new motor vehicle dealer must be licensed.

The application process is as follows:

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.

Obtain a surety bond amount based on the number of vehicles a dealer anticipates selling in a calendar year:

  • $10,000 Bond = Retail or Wholesale Motor Vehicle Dealer (other than New) that sold 200 or fewer vehicles during the last calendar year.
  • $25,000 Bond = Retail or Wholesale Motor Vehicle Dealer (other than New) that sold more than 200 vehicles during the last calendar year.
  • $50,000 Bond = Retail Motor Vehicle Dealer, New (franchised passenger cars, SUVs, light trucks, etc.)
  • Bonds are not required for dealers that sell only: trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats and snowmobiles.

    After obtaining the above, complete the application, pay the license fee for a review of completness.

    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.

    No bond is required for dealers that only sell trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats and snowmobiles.

    Premium for a New York Motor Vehicle Dealer bond is dependent on credit, the bond amount required and experience in the motor vehicle industry.

    SuretyGroup.com is here to help you with your bonding needs.

    We have been underwriting surety bonds for over 35 years, and we offer bonds for individuals and businesses of every size.

    Our team of experienced surety specialists and in-house underwriting authority gives us a unique advantage over other surety companies. We are able to offer competitive, low rates, quick approvals and immediate bond delivery. In most cases we can approve your application today and deliver your bond tomorrow.

    Have Questions?

    Contact our Surety Bond Specialists at:

    Phone: 1‑844‑432‑6637
    Emailinfo@suretygroup.com
    Fax:     404-351-3237
    Hours: 8:00-5:00 CST, Monday through Friday



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