New York Motor Vehicle Dealer BondThe New York Motor Vehicle Dealer Bond is required by the New York Department of Motor Vehicles (DMV) under Vehicle and Traffic Law Section 415(6-b) before any retail or wholesale auto dealer license registration is issued. Bond amounts range from $20,000 to $100,000 depending on your sales volume. Bonds Express has provided NY dealer bonds since 1965 – with bad credit programs, fast approvals, and same-day issuance available.

✓ Since 1965
✓ A+ BBB Rating
✓ Bad Credit Accepted
✓ Same-Day Approval Available
✓ Bonds from $140
✓ All NY DMV Requirements Met
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Who Needs the New York Motor Vehicle Dealer Bond?

All retail and wholesale auto dealers operating in New York State must file a continuous NY motor vehicle dealer bond with the DMV as part of their dealer license application or renewal. This includes:

  • Used car dealerships (retail and wholesale)
  • Franchised new car dealers (passenger vehicles, SUVs, light trucks)
  • Dealers selling vehicles over 10,000 pounds GVW

If you operate as an automobile broker rather than a dealer, you may instead need a New York automobile broker business bond. Looking for other motor vehicle bonds in New York? Browse our full catalog of NY vehicle-related surety bonds.

What Does the NY Dealer Bond Protect?

The New York auto dealer surety bond guarantees that the dealer will comply with all applicable DMV rules and regulations. Specifically, the bond protects consumers from financial loss resulting from dealer misconduct, including:

  • Failing to deliver a valid title for a purchased vehicle
  • Overcharging for DMV registration or title fees
  • Misapplying or mishandling customer deposits
  • Issuing invalid bank drafts or checks for vehicle purchases

The bond is a financial guarantee – not insurance for the dealer. If a valid claim is paid by the surety, the dealer must reimburse the surety company.

Note that the NY dealer bond is a license bond — separate from performance bonds or payment bonds that may be required for specific construction or project contracts.

How to Apply for Your NY DMV Dealer License (Bond Required)

  • Complete the Original Facility Application (VS-1) on the NY DMV website.
  • Purchase your NY dealer bond from a licensed surety company (Bonds Express). The bond must match your business name and address exactly as shown on your DMV application.
  • Submit your completed application, original sealed and signed bond (with power of attorney), proof of property use, and Sales Tax Certificate to the NY DMV.
  • The DMV conducts an on-site facility inspection before issuing your dealer registration.

Important: The bond must have your exact business name and mailing address. Any mismatch could cause your DMV application to be rejected.

Frequently Asked Questions

What is the NY dealer bond amount?
Bond amounts are set by the NY DMV based on sales volume: $20,000 for dealers selling 50 or fewer vehicles per year; $100,000 for dealers selling more than 50; and $50,000 for franchised new car dealerships.
What is a surety bond for a car dealer?
A surety bond for a car dealer is a three-party financial guarantee between the dealer (principal), the NY DMV (obligee), and the surety company. It guarantees the dealer will follow all DMV regulations. If the dealer harms a consumer or violates the law, the consumer can file a claim against the bond.
Can I get a NY dealer bond with bad credit?
Yes. Bonds Express specializes in bad credit dealer bonds, including dealer bonds for applicants with challenging credit. Contact us for a specialized quote.
Is the NY dealer bond continuous?
Yes. The bond must remain continuous and active for as long as you hold your dealer license. If the bond is cancelled, the surety must provide 60 days written notice to the NY DMV Commissioner.
How fast can I get my NY dealer bond?
For the $20,000 bond, same-day issuance is available for qualified applicants. The $50,000 and $100,000 bonds go through underwriting, typically 24-48 hours.

Auto Dealer Bonds by State

BondsExpress issues motor vehicle dealer bonds in all 50 states. If you operate dealerships in multiple states, we can bundle your bonds for easier management:

View all motor vehicle dealer bonds | All New York surety bonds

 

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A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal.  The New York Motor Vehicle Dealer Bond holds you accountable for your business decisions.

By possessing a New York Motor Vehicle Dealer Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.