What is a New York Motor Vehicle Dealer Surety Bond?
The New York State Department of Motor Vehicle requires auto dealers to post a motor vehicle dealer surety bond as part of the licensing process in order to become or remain registered under Section 415 of the NY State Vehicle and Traffic Law.
What amounts are New York Motor Vehicle Dealer Bonds written for?
Effective March 28th, 2017, NY DMV bond requirements have changed depending on the number of vehicles sold, per NYC Assembly Bill 8166A, Chapter 342.
- Bond Amount $20,000 – Retail or Wholesale Dealer (other than new) that sold 50 or fewer vehicles in the previous calendar year
- Bond Amount $50,000 – New Dealer (Franchise)
- Bond Amount $100,000 – Retail or Wholesale Motor Vehicle Dealer (other than new) that sold more than 50 vehicles in the previous calendar year
What are the requirements for a New York Motor Vehicle Dealer License application?
- Original Facility Application
- Copy of lease agreement
- Sales Tax ID Number and Copy of Sales Tax Certificate of Authority
- Proof of Workers Compensation Insurance
- Photocopy of Drivers License or other government issued photo ID
- a receipt for your purchase of the dealer’s starter kit and signs
- payment of all required fees
- filing receipt from NY State Department of State website or Business Certificate from County Clerk
How much do New York Motor Vehicle Dealer Bonds cost?
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations, with rates as low as .5% annually for well qualified clients. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.