The New York State Department of Motor Vehicles requires wholesale vehicle dealers to post a 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. A New York Motor Vehicle Wholesaler Surety Bond guarantees that the principal (wholesaler) complies with all applicable state regulations and provides protection for purchasers, sellers, financing agencies or governmental agencies from monetary loss if the principal engages in any fraudulent or unlawful acts. If a harmed party suffers a loss, a claim can be filed against the bond. If the claim is valid, the surety company will pay out up to the penal sum of the bond to resolve the claim. All monies paid out, including attorney fees, must be reimbursed by the principal to the surety company.
Effective March 28th, 2017 New York Motor Vehicle Wholesaler Surety 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 $100,000 – Retail or Wholesale Motor Vehicle Dealer (other than new) that sold more than 50 vehicles in the previous calendar year
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. 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.