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.

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See our “How does the Surety Bond Process Work” Video

Surety Bond

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. The price of the bond is usually between 1 and 3% of the bond amount.

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

To register as a retail dealer licensed by the Department of Motor Vehicles (DMV) in New York State, you must follow these steps:

1. Complete the Original Facility Application (VS-1). You can find this application on the DMV website.
2. Obtain a copy of your complete original sealed and signed New York Motor Vehicle Dealer Bond :You can purchase a surety bond by clicking here.
3. Provide proof that you have permission to use the property at the business location. This can be a notarized statement from the property owner, a lease, or a mortgage.
4. Provide your Sales tax ID number and a copy of your Sales Tax Certificate of Authority. You can apply for a Sales Tax Certificate of Authority from the New York State Department of Taxation and Finance.
5. Submit your application and all required documentation to the DMV. You can mail or fax your application to the DMV, or you can submit it online.

Once the DMV has received and processed your application, they will issue you a retail dealer license.

Here are some additional things to keep in mind:

• You must be at least 18 years old to register as a retail dealer in New York State.
• You must have a good moral character and be financially responsible.
• Your business location must meet certain requirements, such as having a secure perimeter and adequate parking.
• You must maintain a record of all vehicles you sell and purchase.

If you have any questions about the registration process, you can contact the DMV at 1-800-692-9390.

Here are some additional tips for registering as a retail dealer in New York State:

• Start early. The registration process can take several weeks, so it is important to start early.
• Be complete and accurate. Make sure to fill out all of the required information on the application and to submit all of the required documentation.
• Follow up. Once you have submitted your application, be sure to follow up with the DMV to check on the status of your application.

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.