A New Mexico Motor Vehicle Dealer Bond is a type of surety bond required by the state of New Mexico for anyone who wants to obtain a license to sell vehicles, including cars, trucks, motorcycles, and RVs. It acts as a form of financial protection for consumers in case the dealer violates any laws or regulations, or fails to fulfill their obligations. The bond amount is $12,500 for Motorcycle Dealers and $50,000 for Vehicle Dealers and Auto Recyclers. The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.
How to Get a New Mexico Motor Vehicle Dealer Bond
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the New Mexico Motor Vehicle Dealer Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
Who Needs this Bond?
In New Mexico, anyone who wants to obtain a license to sell vehicles of any kind needs a New Mexico Motor Vehicle Dealer Bond. This includes, but is not limited to:
- Dealers selling new or used cars, trucks, SUVs, and vans
- Dealers selling motorcycles, mopeds, and scooters
- Dealers selling recreational vehicles (RVs) and trailers
- Auto recyclers and salvage yards
Here are some specific examples of individuals who would need a bond:
- A person who opens a used car dealership
- A company that wants to start selling motorcycles
- An individual who plans to buy and sell RVs at a roadside lot
- A business that salvages vehicles after accidents
There are a few exceptions to this requirement. You do not need a bond if you are:
- Selling a personal vehicle you no longer own (as long as it’s a casual sale, not your primary business)
- Acting under a court order (e.g., selling vehicles seized by the government)
- A public official performing official duties (e.g., selling vehicles through a public auction)
- A lending institution selling repossessed vehicles
- A licensed broker selling pre-owned manufactured homes
If you’re unsure whether you need a New Mexico Motor Vehicle Dealer Bond, it’s always best to consult with the New Mexico Motor Vehicle Division (MVD) or a qualified professional familiar with dealer licensing regulations.
How to Get a New Mexico Motor Vehicle Dealer License
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
- Complete the application:
- Create a MyMVD account online or visit a Motor Vehicle Division office to obtain an application packet.
- Fill out the application form completely and accurately.
- Include all required documentation, such as:
- Proof of business entity (e.g., articles of incorporation, DBA certificate)
- Business licenses
- Zoning approval
- Floor plan of your dealership
- Proof of financial responsibility (e.g., bank statements, tax returns)
- Personal identification documents for all owners/officers
- Obtain a New Mexico Motor Vehicle Dealer Bond You will need a surety bond in the amount of $50,000 for a vehicle or auto recycler license, or $12,500 for a motorcycle dealer license.
- Take the required training:
- Complete an 8-hour pre-licensing course approved by the Motor Vehicle Division.
- You can find a list of approved courses on the MVD website.
- Pay the application fee:
- The application fee is $50.
- You can pay online or by mail.
- Submit your application:
- Mail your completed application, bond, and all other required documentation to the Motor Vehicle Division.
- You can also submit your application in person at a Motor Vehicle Division office.
- Wait for processing:
- The Motor Vehicle Division will review your application and conduct a background check.
- This process can take several weeks.
- Receive your license: If your application is approved, you will receive your New Mexico Motor Vehicle Dealer license in the mail.
Additional things to keep in mind:
- You must renew your license every year.
- You must also comply with all state and local laws and regulations governing motor vehicle dealers.
Here are some helpful resources for obtaining a New Mexico Motor Vehicle Dealer license: