New Mexico Auto Dealer Bond

New Mexico Auto Dealer Bond

All New Mexico motor vehicle dealers must comply with the Motor Vehicle Division’s requirement to purchase and maintain a Vehicle Dealer or Auto Recycler Bond. Jet’s process takes only a few minutes to complete. Get started:



Jet studies the car business to sniff out the shady shops that cause all of the claims, allowing us to lower bond prices for New Mexico dealers.

Other bond providers just run a generic credit check, which opens the floodgates causing quality dealers to unfairly subsidize the deadbeats with an inflated premium.

We think honest dealers with solid business practices should get to save on their bond.

We also provide dealers direct access to surety underwriters and claims handlers without any agents or brokers in the middle. Eliminating the middleman dramatically simplifies the bond purchase and filing process with the lowest rates, no down payment, a no-obligation monthly payment option, and the best defense should anyone ever make a claim on your bond.

What Is the Lowest Price for a Dealer Bond in New Mexico?

Starting rates for the $50,000 Auto Dealer Bond are $250 for one year or $25 a month. The $50,000 bond limit is required for new vehicle dealers, used vehicle dealers, and motor vehicle recyclers. If you need the $12,500 Motorcycle Dealer Bond, the rates begin at $100 for a one-year term or $10 monthly. Businesses seeking licensure as a VIN Inspector need a $30,000 bond, which starts at $225 for one-year or $23 per month.

Your years of experience as a dealer or wrecker are taken into account for the price. A soft credit check is also required, but don't worry, it doesn't affect your score; this is standard in the surety industry for Motor Vehicle Dealer Bonds.

Bond Type & LimitMonthly1 Year2 Years
$50,000 - Vehicle Dealers & Recyclers$25$250$438
$12,500 - Motorcycle Dealers$10$100$175
$30,000 - VIN Inspector$23$225$394
New Mexico Auto Dealer Bond Prices

Jet’s multi-year options are great if you want to lock in a discounted rate for the long term. Prefer to keep your cost low upfront? Choose the monthly option that runs like a subscription and cancel whenever needed.

New Mexico Auto Dealer Bond

Why Does the New Mexico Motor Vehicle Division Require a Surety Bond for Auto Dealers?

Codified in Section 66-4-7, NMSA 1978, there are laws specific to motor vehicle dealers, automotive recyclers, and motorcycle dealers that hold them accountable to comply with state law while running a business. Just like the other 49 states, New Mexico has designated an obligee (Motor Vehicle Division) to enforce these regulations to protect its citizens from mishaps when buying from or selling to a dealership. 

The surety bond is just one of the requirements to become a vehicle dealer in the state. Its purpose is to provide recompense in situations where a person or entity is financially harmed by the actions of a dealer (such as odometer tampering). Jet, as the surety company, is the financial backer in the aforementioned scenario, however, dealers are responsible for their actions and therefore must reimburse Jet—more on this in the Bond Claim Process link below.

How Does a New Mexico Motor Vehicle Dealer Bond Get Filed?

Everything can be done online, from paperwork to bond filing, through MyMVD. First-time applicants should review the How to apply for a New Mexico Dealer License document. Those renewing their license and bond can find helpful information in the Renew a Dealer or Auto Recycler License in MyMVD document.

All dealer bonds have a common expiration date that lines up with the license expiration of March 31st. A new bond or proof of a continuous bond must be submitted before then annually.

If anything needs to be filed the old-fashioned way, you can do so at the following address:

New Mexico Motor Vehicle Division, Dealer Licensing Bureau
505 Marquette NW, Suite 1501
Albuquerque, NM, 87102

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How to Renew and Cancel Bonds and Avoid Claims With Jet

How to Renew My Bond

Need to renew your bond? Read more on Jet’s process to renew your bond.

How to Cancel My Bond

See the details surrounding canceling your bond.

Bond Claim Process

Motor Vehicle Dealers should know what causes a claim and what to do if one is filed against them.

New Mexico Vehicle Dealer or Auto Recycler Bond Example

New Mexico Auto Dealer Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: