As a result of Assembly Bill 8166‘s passage, new surety bond requirements for a New York Auto Dealer will come into effect on April 8th, 2017.
This bond is required by the NY state government for all auto dealers; referred to as a New York Motor Vehicle Dealer surety bond. The bond guarantees the New York auto dealer will comply with NY DMV regulations while protecting the client against fraud and dishonesty. If there is fraud or misconduct by the dealer, a claim can be made against the auto dealer bond which the surety will cover. This dealer bond acts as a financial guarantee that the dealer will follow the state regulations stated by the bond. Participants in agreement with this bond include the auto dealer (principle), NY DMV (obligee), and the surety.
The New York Vehicle and Traffic Law has been modified to increase the surety bond sales-to-bond threshold. The amount of vehicles sold during a calendar year determines the bond amount. New regulations state that retail or wholesale dealers that sold 50 or fewer vehicles in the previous year must have a $20,000 surety bond. Also, if a dealer sells more than 50 vehicles in the previous year, the dealer must have a $100,000 surety bond. The bill requires the DMV to receive a 60 days’ notice if the bond will lapse.
In addition to a surety bond, dealers must submit :
In order to be licensed by the DMV in New York, motor vehicle dealers must :
Personal credit score, the bond type, and the bond amount are factors that determine the price for a bond.
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