New Mexico Auto Dealer Bonds2019-07-03T00:40:09+00:00

New Mexico Auto Dealer Bonds

License requirements are enforced by the State of New Mexico, Motor Vehicle Division – Dealer Licensing Bureau. One of the main requirements in order to become licensed is a bond. Click Let’s Roll below to get started with the bond application process.

Let’s Roll!

Any person who performs sales transactions of new or used motor vehicles, manufactured homes, or trailers that need New Mexico registration is assigned dealer status. Private individuals can sell up to four vehicles per year that are registered in their own name. If five or more vehicles are sold in a year, a dealer license is required.

new mexico auto dealer bond

Pricing of the bond.

The rate for the bond will vary, as it is dependent on things such as the type of license you are applying for, years in business, and your personal credit score.

Motorcycle dealers must have a $12,500 bond, while a $50,000 bond is needed for the other auto-related business (car dealers, wholesalers, distributors, auto recyclers, or title service companies).

Bonding with Jet will give you the best chance of finding the lowest rate available. We work with various insurance companies to fine the lowest cost based on the above factors. Our pay-per-month option gives you the lowest cost due at payment. An annual payment is also available at competitive rates.

Price Tier* Motor Vehicle
Dealer Bond
Motorcycle
Dealer Bond
Monthly | Annual Monthly | Annual
Preferred      $21 | $250     $10 | $100
Standard     $44 | $525     $16 | $188
Credit Repair       $94 | $1000     $35 | $375

*The cost of New Mexico surety bonds are reliant on credit score, number of years in business, and type of dealership. Not all available price tiers are shown in this chart. These are subject to change at any time and are not a guarantee.

Who Qualifies as a Dealer?

Any person who performs sales transactions of new or used motor vehicles, manufactured homes, or trailers that need New Mexico registration is assigned dealer status. Private individuals can sell up to four vehicles per year that are registered in their own name. If five or more vehicles are sold in a year, a dealer license is required.

Click below to get a quote for your dealer license bond.

New Mexico Dealer Bond Apps
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$50,000 Auto Dealer Bond
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$12,500 Motorcycle Dealer Bond

Items Needed to Receive a Dealer License

The application for a dealer license is fully online through the New Mexico Motor Vehicle Division. However, there are several items that must be ready before starting the online application.

  • Bond documentation
  • Business identification numbers (NM Tax ID-CRS, Secretary of State assigned corporation or partnership number, Federal tax ID)
  • Location information (including a zoning form, business license, and at least a 6-month property lease)
  • Business ownership documents, such as the Certificate and Articles of Organization (LLC) or Incorporation
  • Pictures/Diagrams of business location (office and inside office), signage, office equipment, vehicle display area, and property layout
  • $50 application fee (e-check or credit card)
  • For new car dealers, franchise agreement from the manufacturer
  • For used car dealers, certificate of Pre-Licensing Education

Claims Against a Bond.

If a dealer engages in misconduct, a customer can file a complaint against the dealer. The bond will repay any monetary loss resulting from specific dealer actions that are prohibited by law.

The bond covers a dealer committing fraud, forgery or being an unlicensed dealer. A salvage violation or tampering with the odometer are also included. A dealer that doesn’t give title or registration or has a curbing/zoning violation gives cause for complaints.