New York Motor Vehicle Dealer Bond

1. Apply for Your Bond Online

Applying for a motor vehicle dealer bond is a straightforward process you can begin immediately. Simply fill out our online application form, specifying the bond type and amount you need, along with some basic information about your business. With multiple bond programs available, we provide bonds to approximately 99% of our applicants.

We recently helped an auto dealer in New York City get bonded. She had been in business for a year and needed to adjust her bond amount based on sales. Immediately after submitting her application online, she received a quote for a surety bond. She made the bond payment online and got her bond right away.

2. Get Your Bond Quote

After submitting your surety bond application online, you will receive a free, no-obligation quote. Most applicants get an instant quote, but in some more complicated cases, it can take up to 24 to 48 hours. We always guarantee you’re getting the best quote possible every time.

3. Pay Your Bond Premium

We’ll email your bond as soon as you pay the premium, so don’t worry about long delays or waiting periods. If requested, we are happy to mail a hard copy to you. 

With your new motor vehicle dealer bond in hand, you can finalize your license application. Simply submit your bond to the state with the other required licensing documentation. 

If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – contact us or call us at (877) 514-5146.

According to New York Vehicle and Traffic Law Section 415, every new motor vehicle dealer applicant and every qualified dealer applicant must obtain and maintain a surety bond. New or franchise dealers are required to post a $50,000 bond. Those who sold fifty vehicles or fewer in the previous calendar year must obtain and maintain a surety bond of $20,000. Applicants who sold more than fifty vehicles in the previous calendar year must obtain and maintain a surety bond of $100,000.

The conditions of this Bond are that the Principal shall:

• Pay all valid bank drafts, including checks, drawn by the Principal for the purchase of motor vehicles;
• Transfer good title to each motor vehicle which the Principal sells;
• Maintain and keep safe all customer deposits related to the sale of a motor vehicle from the time of receipt of such customer deposit until good title has been transferred to the customer;
• Pay all fines imposed upon the Principal by the Commissioner of Motor Vehicles pursuant to the provisions of the Vehicle and Traffic Law;
• Repay any overcharges of a customer for vehicle registration and titling charges payable to the Commissioner of Motor Vehicles for registering and titling the sold vehicle.

The motor vehicle dealer bond in New York remains in full force and effect until terminated by sixty days written notice of cancellation delivered to the New York State Commissioner of Motor Vehicles.

A surety bond protects consumers financially. The claimant will file the claim directly with the surety bond company. The Surety company then investigates to confirm its validity. If the claim is found invalid, the surety company denies it. If valid, the surety company pays the claimant up to the bond amount. The dealer is then required to fully reimburse the surety bond company.

The New York Department of Motor Vehicles is responsible for dealer licensing. You can get more details about getting licensed through the comprehensive New York dealer license guide.

 To apply for a New York dealership license, you must provide: 

• Original Facility Application (pdf) (VS-1) 
• Dealer bond form
• proof that you have permission to use the property at the business location (notarized statement from property owner, lease (may be contingent on facility approval), sub-lease with primary lease, mortgage, deed or receipted tax bill)
• your Sales tax ID number and a copy of your Sales Tax Certificate of Authority (you may need a FEIN from the IRS before this step)
• proof of Workers Compensation Insurance for your employees (if you have no employees, indicate that on the application)
• a photocopy of driver license(s) or other government issued photo ID for everyone listed on the application
• a receipt for your purchase of the dealer’s starter kit and signs
• all required fees, via checks (app/license check & MV-50 check) payable to the Commissioner of Motor Vehicles
• a Filing Receipt found on the NY State Department of State website (Corporation or LLC) or a Business Certificate from the County Clerk (individual using assumed name or partnership)

You must submit a hard copy of your application, associated documents and fee to this address:

NYS DMV
Bureau of Consumer & Facility Services
Application Unit
P.O. Box 2700
Albany, NY  12220-0700