How to Get a Dealer License In New York
This guide is for informational purposes only. SuretyBonds.com does not regulate New York auto dealer licensing. Contact the NY Department of Motor Vehicles for the latest official license requirements .
In this guide, you’ll learn the step-by-step process to become a licensed motor vehicle dealer in New York state. We’ll go over the license application, fees, inspection process and more.
First — when do you need a New York dealer license? If you sell more than five vehicles in a year or display more than three vehicles on a lot per month, The New York Department of Motor Vehicles (DMV) requires you hold an auto dealer license.
New York Dealer License Types
There are several different license types included on the DMV Facility Application form for licensing. Start by identifying which business types you wish to apply for:
- New retail (franchise) motor vehicle dealer: Dealers with 1+ franchise agreements to sell new vehicles
- Other retail motor vehicle dealer: Retail selling or retail plus wholesale buying of vehicles, motorcycles, trailers and more
- Wholesale motor vehicle dealer: Dealers that only operate in wholesale spaces with no direct-to-consumer retail sales
- Boat dealer: Dealers buying, selling or dealing boats and other motored watercraft
- Vehicle transporter: Businesses that transport vehicles for limited distances for the purpose of delivering, improving or repairing
- ATV dealer: Dealers engaged in buying and selling ATVs
- Yacht broker: Agents helping boat buyers or sellers to negotiate and complete transactions
The first three types of motor vehicle dealers all need to file a surety bond with the license application.
How to Get a New York Auto Dealer License
Follow these five steps to submit your application to become a motor vehicle dealer in New York State.
Step 1: Register with the state tax department
First, register your business with the New York State Department of Taxation and Finance (DTF). Apply online through the DTF website where you can also find application instructions. If approved, you’ll receive your certificate in the mail.
You’ll need to provide your sales tax ID and certificate of authority with your official application paperwork.
Step 2: Set up your dealership location
Next, lease or purchase a permanent business location. All dealers must maintain a place of business in New York State. You’ll list the official business address on your license application form.
Step 3: Get workers compensation insurance
If you plan to hire any employees (including family members), you'll need to submit proof of workers compensation insurance. This protects employers against liability from on-the-job injury or illness.
Step 4: Buy a surety bond
Next, purchase a New York auto dealer surety bond. Your required coverage will depend on your license type and business volume:
- $20,000 bond if you sold 50 or fewer cars in the previous calendar year
- $50,000 bond if you're a franchised (new vehicle) dealer who sells trailers, motorcycles, SUVs, light trucks, etc.
- $100,000 bond if you sold more than 50 cars in the previous calendar year
The bond ensures that you will comply with the Motor Vehicle Dealers and Transporters Regulations. It also provides consumers with a means to seek reimbursement if the dealership fails to comply with licensing laws and creates financial losses.
Note: Dealers who only sell trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, and snowmobiles are exempt from this bond requirement.
Step 5: Submit application
Finally, complete the application form and gather all your documents to apply for your NY dealer license:
- Original Facility Application (VS-1)
- Copy of the original surety bond form
- Proof of worker’s compensation insurance
- Proof of business address (lease, mortgage, tax bill, etc.)
- Copy of sales tax certificate of authority
- Copy of your government ID (and ID of any other owners on the application)
- Franchise letter of intent or agreement from manufacturer (franchise dealers only)
- Tax filing receipt from the Department of State or business certificate from your County Clerk (based on entity structure)
- Check for application and registration fees
Mail all documents to the DMV at this address:
NYS DMV Bureau of Consumer & Facility Services
Application Unit
P.O. Box 2700
Albany, NY 12220-0700
How Much Does It Cost to Get a NY Dealer License?
The application and business fees are $487.50 for New York motor vehicle dealers. Boat dealers, yacht brokers and ATV dealers may have different fees.
How Long Does It Take to Get Licensed?
Once your license application is processed in Albany, it will go to your regional DMV office for review. This process can take up to 4 weeks. Then, the DMV will contact you to schedule an onsite investigation of your business location.
What Is the New York State Dealer Inspection Process?
The Automotive Facilities Inspector (AFI) will check four main aspects of your business:
- Dealer starter kit
- Location requirements
- Sign requirements
- Proof of identification
Starter Kit: You can purchase your dealer starter kit through vendors listed on the DMV website, which includes the following materials:
- Registry book
- Bills of sale
- Odometer statements
- Warranty forms
Location: The inspector will ensure your dealership location has the following features:
- Clearly separate from any other businesses
- Display lot
- Dedicated business mailbox at the address
- Method of locking security items
- Heat, electricity, desks and chairs
- Business phone (can be a cell phone)
Signage: The inspector will confirm your dealership signage adheres to the following criteria:
- Red background with white lettering
- At least 3 feet wide by 2 feet tall
- Displays the message “ Registered (Facility Number) State of New York Motor Vehicle Dealer” in 2 inch block lettering
- Permanently mounted and always visible from the nearest street or highway
Identification: Finally, the inspector will verify proof of identification for everyone listed on your dealership application.
If you meet all requirements, you'll be issued a certificate of registration, retail certificates of sale, and a dealer plate letter if needed. Then, you will officially be a licensed New York auto dealer!
How to Renew Your NY Dealer License
You must renew your New York auto dealer license every two years. You can renew your license online or by mail. You may renew your license up to 60 days in advance and up to 6 months after it has expired. When you renew your license, you'll also need to renew your bond.
For more information on becoming a used auto dealer, please contact the Office of Vehicle Safety and Clean Air by calling 1(518)474-4653.
Last Updated: April 14, 2026
