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What Is the Bond Amount That a New York Motor Vehicle Dealers Needs 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 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.

The license 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.

A surety bond will be required 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):

  • $10,000 Bond = Retail or Wholesale Motor Vehicle Dealer (Used Vehicles) that sold 50 or fewer vehicles during the last calendar year.
  • $100,000 Bond = Retail or Wholesale Motor Vehicle Dealer (Used Vehicles) that sold more than 50 vehicles during the last calendar year.
  • $50,000 Bond = Retail Motor Vehicle Dealer, New (franchised passenger cars, SUVs, light trucks, etc.)
  • After obtaining the above, complete the application, pay the license fee for an initial review of the application package.

    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.

    How Much Will This Bond Cost?

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

    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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