New Mexico Motor Vehicle Dealer Bond

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:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. 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.

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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.

1. 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.
2. 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.
3. Pay the application fee:
   • The application fee is $50.
   • You can pay online or by mail.
4. 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.
5. Wait for processing:
   • The Motor Vehicle Division will review your application and conduct a background check.
   • This process can take several weeks.
6. 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:

• New Mexico Motor Vehicle Division website: https://www.mvd.newmexico.gov/dealers-auto-recyclers/: https://www.mvd.newmexico.gov/dealers-auto-recyclers/
• New Mexico Independent Automobile Dealer Association: https://www.nmiada.com/: https://www.nmiada.com/
• New Mexico Automotive Dealers Association: https://www.nmada.org/: https://www.nmada.org/