New York Motor Vehicle Dealer Bond

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Motor vehicle dealers are required to post a New York 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.

See our “What is a Surety Bond” Video.
See our “How does the Surety Bond Process Work” Video

Surety Bond

• Required by: New York Commissioner of Motor Vehicles
• Minimum Bond Amount: $20,000
• Maximum Bond Amount: $100,000
• Valid: Continuous – Renewable

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:

• 50 or fewer used – $20,000
• 50 or more used – $100,000
• Franchise, New vehicles- $50,000

Dealers selling only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, snowmobiles are exempt from the bond requirements. 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.

Register as a retail dealer licensed by the Department of Motor Vehicles in New York State

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:

• New York Motor Vehicle Dealer Bond
• License application Original Facility Application (pdf) (VS-1)
• Supporting application documents
• Proof of Business Name
• Proof of Workers Compensation Insurance
• Certificate of authority
• All business and license fees must be paid.

For more licensing information, visit New York’s DMV Web Page.

How to obtain a New York Motor Vehicle Dealer Bond

At Surety1.com, we make it easy to apply for your bond. Our simple, 3 step process is:

1. Complete our easy to navigate and secure online application. 
2. Review your free, no obligation quote from one of our surety bond professional agents, usually within 1 business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed the bond will be shipped for the required signature. Once signed, the New York Motor Vehicle Dealer Bond is submitted to the Department of Motor Vehicles in New York State.

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. We also maintain an A+ rating from the Better Business Bureau.