If you’re in the business of buying, selling, exchanging, or otherwise dealing with more than 4 vehicles over the course of 1 year, you must obtain a motor vehicle dealer license from the Dealer Licensing Bureau and post a New Mexico Motor Vehicle Dealer Bond. The amount of the bond depends on what type of vehicles are to be sold, the amount of vehicles you plan to sell, and other factors. Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
Motorcycle dealers must file a $12,500 bond. New and used car vehicle dealers must file a $50,00 bond. The bond guarantees the principal will abide by all New Mexico state laws and regulations along with the laws outlined in Section 66 – 4 – 7, NMSA 1978 Comp which states:
The bond shall be payable to the state for the use and benefit of the purchaser and the purchaser’s vendees, conditioned upon payment of any loss, damage and expense sustained by the purchaser or the purchaser’s vendees, or both, by reason of failure of the title of the vendor, by any fraudulent misrepresentations or by any breach of warranty as to freedom from liens on the motor vehicle or motorcycle sold by the dealer, wholesaler, distributor, dealer of motorcycles only or auto recycler. The bond shall be continuous in form and limited to the payment of fifty thousand dollars ($50,000) in total aggregate liability on a dealer’s license, wholesaler’s license, distributor’s license, auto recycler’s license or a title service company license and twelve thousand five hundred dollars ($12,500) on a dealer’s license for motorcycles only.”
Since this bond is continuous, it remains in full force and effect until it is cancelled. However, it does expire with the license annually on March 31st.
If the bond is cancelled, a written submission of cancellation must be submitted to the Motor Vehicle Division at least 30 days before the cancellation date. Cancellation comes into effect 30 days after the Director receives the notice for cancellation.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you. State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company. Licenses are valid for one year and expire on March 31st. For additional licensing information, visit New Mexico’s official page.
Simply go to our easy to use, online application and submit an application. It is free to apply and there is no obligation to purchase anything. If a credit check is needed, it is a “soft” inquiry so it will not affect the credit score. After receipt of the application an agent will contact you, usually the same day you apply with a firm quote from one or more of our 14 surety bond markets.
Once you have your firm quote (which usually takes less than a day)there will be some simple paperwork to sign, email or fax that back to us, provide payment and your bond will be sent out. If you choose overnight shipping you can expect your bond the next business day after making payment.
We have been providing surety bonds in New Mexico since 2003 and Surety1 is rated A+ by the Better Business Bureau. March 31 is fast approaching. Don’t delay, get your free quote today!