New Mexico Dealer License: The Complete Guide
Is starting a car dealership in New Mexico on your mind? In order to launch your new business endeavor, you will need to obtain a New Mexico dealer license.
The license is necessary for anyone who wants to sell more than four vehicles in the state within a period of one year. The process includes fulfilling a number of requirements set by the licensing authority, which is the New Mexico Motor Vehicle Division (MVD). One of the major criteria that you will need to satisfy is to post an auto dealer bond.
Below you can find out the exact steps that you have to follow to get your dealership started.
1. Determine which auto dealer license type you need
The state body that oversees the activities of auto dealers is the Dealer Licensing Bureau at the Motor Vehicle Division. You can obtain the following New Mexico auto dealer license types according to the activities you want to engage in:
- Distributor – distributing of vehicles
- Manufacturer – manufacturing new vehicles
- Retail Dealer – selling new and used vehicles
- Wholesaler – only wholesale, cannot sell to the public
2. Get to know the New Mexico dealer license requirements
There is an extensive list of criteria that you need to meet, so that the Dealer Licensing Bureau accepts your application for a dealer in the state. You will need to provide the following:
- Business ownership documents – Certificate and Articles of Organization (LLC) or Incorporation
- Information about the owners
- Completed Applicant Affidavit
- Property lease for at least 6 months
- Photos and diagrams of your business location (site, vehicle display area, office building, inside office, equipment, business sign, property diagram, and inside office layout)
- Pre-licensing education certificate from the New Mexico Independent Auto Dealers Association (for used car dealers only – required every two years)
- Franchise agreement from a manufacturer (for new car dealers only)
- $50,000 surety bond
3. Prepare your paperwork
You have to complete the state application form online via the MyMVD Partner Portal. It’s a good idea to get fully acquainted with its contents beforehand, as you will need to fill it in at once. For helpful information, you can review the How to Become a NM Licensed Dealer guide.
Besides fulfilling the requirements listed in the previous section, you also have to obtain a number of separate documents from other authorities:
- State tax ID from the New Mexico Taxation and Revenue Department (Combined Reporting System (CRS) number)
- Employer Identification Number (EIN) from the IRS
- Assigned corporation or partnership number from the NM Secretary of State
- Occupational business license from your city or county
- Zoning documents from local authorities
4. Obtain the required New Mexico auto dealer bond
One of the main requirements that you need to satisfy in order to get your New Mexico dealer license is to obtain a surtey bond. The amount of the New Mexico auto dealer bond is $50,000. Its purpose is to guarantee you will follow state laws in your operations as a dealer.
Getting bonded entails covering a percentage of the required amount, called the bond premium. It is between 0.75% to 5% for dealers who can showcase stable finances. The premium for a $50,000 bond can be between $375 to $2,500 if your finances are in good shape.
5. Apply with your full document set
You have to submit your completed application form online via the MyMVD Partner Portal, together with all paperwork attached digitally. Alternatively, you can mail the full set of documents to:
New Mexico Motor Vehicle Division
Joseph Montoya Building
P.O. Box 1028
1100 South St. Francis Drive
Santa Fe 87504-1028
The relevant fees include:
- $50 licensing fee (non-refundable)
6. Renew your license annually
You have to go through the New Mexico car dealer license renewal process every year. The licensing period runs from April 1st to March 31st. The deadline for submitting your renewal application is February 28th. You can complete the dealer license renewal online. The fee is the same as for initial licensing and is $50.
Do you have more questions about getting your New Mexico dealer license and bonding? Don’t hesitate to get in touch with us at 877.514.5146.
Latest posts by Victor J. Lance, President/Owner (see all)
- How to Get a Mortgage Broker License in Florida [2021 Guide] - February 19, 2021
- How Much Does a Florida Liquor License Cost? [2021 Guide] - February 17, 2021
- How to Get an Alabama Dealer License [2021 Guide] - January 11, 2021