The Full New York Auto Broker License Guide [2020]

Published: Sep 18, 2020
new york auto broker license

 

Do you want to start your operations as an auto broker in the state of New York? In case you want to make your first steps for this new business endeavor, you have to obtain a New York auto broker license.

The licensing process is conducted by the Department of State’s Division of Licensing Services. It guarantees that all applicants for an auto broker comply with the relevant requirements. 

In the guide below, you can get to know the full list of criteria that you need to satisfy to launch your auto brokering business in the state of New York. 

Meet the New York Auto Broker License Requirements

The role of an auto broker in New York is defined as “offering to provide, providing, or representing that he will provide a service of purchasing, arranging, assisting or effecting the purchase of an automobile as agent, broker or intermediary for a consumer” for a fee or commission. 

The Division of Licensing Services requires auto brokers to obtain a state license prior to launching their activities. It ensures that licensees comply with the New York Laws, Article 35-B and other relevant regulations. Applicants have to submit most of their documents with the state Department of Motor Vehicles (DMV).

Business Documents 

To get started with the licensing, you first need to register a business entity in the state. You can do so via the New York State’s Business portal.

The documents that you have to obtain to apply for a NY auto broker license include:

  • Business registration documents
  • Business name and address 
  • Certificate of an assumed business name (DBA) from your county clerk’s office
  • Information about owners and partners
  • Disclosure questions 
  • Employer Identification Number (EIN) from the IRS 
  • Worker’s compensation and disability insurance (if you’re hiring employees)  

Provide a Surety Bond 

All applicants have to obtain an auto broker bond in order to obtain a state license. The surety bond functions as a security mechanism that protects your customers against potential illegal actions on your side.

You need to post a $100,000 bond in the official form and provide it to the Division of Licensing Services. 

To get bonded, you have to cover a fraction of the bond amount, which is called the premium. It depends on factors such as your personal credit score, business finances, and fixed and liquid assets. The better these indicators are, the lower your bond cost would be. If your finances are in good shape, you can expect rates between 0.75% and 5%.

Want to see the exact price of your auto broker bond? Fill in the short form below! 

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Complete the NY Auto Broker License Application

new york auto broker licenseWhen you’ve obtained all the necessary paperwork, it’s time to complete the Automobile Broker Business Application form (VS-1AB).

You have to mail it, together with your full document set, to:  

Vehicle Safety Services

Application Unit

6 Empire State Plaza, Room 220

Albany, NY 12228-0001

If you want to operate in more than one location, you need to submit a separate application for each of them. 

License and Registration Fees

The licensing fees that you have to pay include:

  • $37.50 application fee
  • $450 licensing fee for a 2-year term 

The licensing period lasts for 2 years, so you need to renew your license afterwards if you want to continue your operations. 

 

Have further questions about the New York auto broker license and bonding? You can reach our experts at 877.514.5146.

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John Williams

John Williams

John Williams is currently the Director of Sales for Lance Surety. Since joining the company in 2011, he has served in various roles throughout the organization, working his way up to now managing our team of licensed agents. As a licensed property & casualty agent, John has become extremely knowledgeable in all facets of the surety industry, including commercial, court and contract bonds. Under his leadership, John’s team has helped thousands of businesses throughout the country meet their license and bonding requirements.