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How much does a New York motor vehicle dealer surety bond cost?
Auto dealer bonds are subject to underwriting, meaning that an underwriter will determine the exact cost of your bond by reviewing your financial credentials. It is also important to have your facility number at hand when contacting a surety specialist. Qualified applicants could obtain a rate that is between 1-3% of the bond's amount.
Are you an automobile broker in need of a bond? Visit our New York automobile broker bond page for more information.
Why are motor vehicle dealers bonded?
Whether you are applying as a new or used retail or wholesale motor vehicle dealer, you must purchase a surety bond in an amount based on the number of vehicles sold in last calendar year before your license will be issued. By posting a bond, the principal (dealer) guarantees to conduct business in full compliance with the Vehicle and Traffic Law section 415(6-b). The following are examples of auto dealer responsibilities:
- Paying all valid bank drafts
- Transferring good titles to each sold vehicle
- Maintaining all customer deposits
- Paying all fines imposed by the Commissioner of Motor Vehicles
- Repaying any overcharges of a customer
Apply for your bond today! Send a bond request and one of our bonding experts will contact you within one business day.
Additional information about New York auto dealer bonds
Auto dealer bonds are issued to run continuously until canceled. If the surety chooses to cancel a bond, a written cancellation notice must be mailed to the Commissioner of Motor Vehicles 60 days prior to the proposed cancellation date.
How to become a motor vehicle dealer in New York
Both new and used motor vehicle licensees must complete the original facility application (Form VS-1) and send it to the Department of Motor Vehicles. Each application must be accompanied by the following documents:
- Surety bond (Form VS-3)
- Application and business fees
- MV-50 fees
- Certificate of Authority (NYS Department of Taxation and Finance DTF-17A)
- Business location documents
Please note this page is for vehicle dealer licensing. If you have lost or need to obtain a vehicle title, a New York certificate of title bond is required.