Motor vehicle dealers are required to post a Motor Vehicle Dealer Bond as part of the process to license the dealership. 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.
The specific bond amount is determined on the amount and type of vehicles sold annually:
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
This bond guarantees the principal will abide by all New York state laws and regulations along with all laws outlined in the Vehicle and Traffic Law section 415(6-b).
Since this bond is continuous, it remains in full force and effect until it is cancelled. If it is cancelled, a written notice of cancellation must be submitted to the obligee at least 60 days prior to the cancellation date.
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.
For more licensing information, visit New York’s official page.