New Mexico Motor Vehicle Dealer Bond

A New Mexico motor vehicle dealer bond costs from $500 to $5,000. This cost is based on the state requirement for a $50,000 surety bond. However, you are not required to pay the full amount of the required bond. 

Instead, you can purchase the bond through our authorized New Mexico surety company. We have proudly served our customers’ bond needs for more than a decade. Bond rates are available between 1% to 10%. 

Your bond cost is determined by several factors. These include your professional credentials, financial assets and credit scores. We consider most credit scores and bond more than 99% of applicants. 

With a 700 credit score or higher, the rate is 1% to 3%. With a credit score of 600 to 699, the rate is 3% to 5%. A lower credit score qualifies for a rate between 5% and 10%.

1. Apply for Your New Mexico Motor Vehicle Dealer Bond

You can set up your bond in a few fast, simple steps. The first step is to complete the short online application. For assistance with the application, please get in touch with one of our friendly bond experts. 

Rob reached out to us recently for a motor vehicle dealer bond for his new business. While he anticipated a lengthy process, Robby was pleased to get an instant quote after applying online. We emailed the bond to him after receiving his payment, and he finalized the state licensing application quickly.

2. Review Your Motor Vehicle Dealer Bond Quote

Immediately after submitting the application, you will get an instant quote for your new motor vehicle dealer bond. Some applications are complex and need additional review. In these situations, a quote is offered within 48 hours. 

3. Pay the Bond Premium Online

Paying your new bond’s premium to finalize your purchase is easy to do. After making your payment online, you will quickly receive the bond document via email. If requested, we are happy to mail the bond as well. 

Our bond experts are proud to support our valued customers, and we are available to answer your questions and guide you through challenges. For assistance, please contact us or call us at (877) 514-5146.

Under Section 66-4-7, NMSA 1978 Comp, motor vehicle dealers must have a surety bond to apply for and maintain a dealer license. The New Mexico Motor Vehicle Division is the governing body for motor vehicle dealer licensing. 

The motor vehicle dealer bond must be in the amount of $50,000, and the obligee is the State of New Mexico. The surety bond is a continuous document that remains valid until it is canceled by the surety company. The surety must provide a 30-day written notice to the Director of the Motor Vehicle Division.

Motor Vehicle dealers must have a valid surety bond to maintain their license to do business in New Mexico. If the bond is canceled and not replaced, the dealer’s license may be suspended. The surety company may cancel the bond if it is not maintained with annual premium payments. 

We strive to support our customers with bond maintenance. Each year prior to the premium due date, we will contact you with renewal instructions.

A claimant must directly contact the surety company to file a claim. The surety company will investigate the claim to determine if it is valid. The claim will be denied if the investigation’s findings do not support it. 

If the claim is substantiated, the surety will pay the claimant up to the penal sum of the surety bond. Then, the motor vehicle dealer is liable for reimbursing the surety company for the amount paid on the claim.

The New Mexico Motor Vehicle Division is responsible for motor vehicle dealer licensing. More information about becoming a licensed dealer is available through the New Mexico dealer license guide. When applying for a dealer license, you must provide:

• $50 application fee
• Surety bond
• New Mexico tax ID-CRS
• Federal tax ID
• Corporation or partnership ID number
• Business ownership documents
• Business license
• Business owner’s information – driver's license number, address, phone number
• Business location information – pictures, signage, vehicle display area, office equipment, office space pictures and diagram, property layout diagram 
• Zoning documentation
• Property lease with at least a 6-month term
• Pre-licensing education certificate, for pre-owned dealers
• Franchise agreement, for new vehicle dealers

More information about motor vehicle dealer licensing is available by contacting:

New Mexico Motor Vehicle Division
Joseph Montoya Division
P.O. Box 1028
Santa Fe, NM 87504-1028
Phone: (888) 683-2636