In New York, all retail and wholesale motor vehicle dealers must file a surety bond with the New York Department of Motor Vehicles to be licensed.
Start your application and get your bond in minutes:
The $20,000 Used Motor Vehicle Dealer Bond starts at $10 monthly or $100 for one year. Additional bond limits are portrayed in the chart below with their corresponding starting rates.
Bond Type/Limit | Monthly | 1 Year | 2 Years |
---|---|---|---|
Used/Retail - $20,000 | $10 | $100 | $175 |
Used/Retail - $100,000 | $45 | $450 | $788 |
New/Franchise - $50,000 | $23 | $225 | $394 |
The price of the bond depends on several factors, including the bond limit, personal credit, and years in business. These factors determine the risk associated with writing the bond and help the underwriter assign a rate accordingly.
The bond is a guarantee that funds are available to any person financially harmed by the actions of a licensed auto dealer in the state of New York. By providing the surety bond, the surety company is liable to provide compensation upon a valid bond claim, which can happen for reasons such as failing to deliver a valid title or overcharging for registration or title fees.
New York isn’t alone in their requirements—all 50 states have a bond requirement for licensed dealers in some capacity.
The application is streamlined, only asking for the information absolutely necessary to get you a quote. Click the quote button below and get your bond within five minutes.
Once all information is gathered, several payment terms will be displayed on the screen, allowing you to choose from low monthly payments or discounted annual or multi-year pay-in-full rates.
After selecting your preferred payment, put in your credit card information and, upon approval, your bond form and receipt will be ready for download.
If you are submitting your dealer license application for the first time, the surety bond must be filed alongside your application. Make sure the surety bond has your business name and mailing address the exact same as your application. It can be filed to the DMV at the following address:
NYS DMV
Bureau of Consumer & Facility Services
Application Unit
P.O. Box 2700
Albany, NY 12220-0700
We produce these bonds as Jet Insurance Services through our partnership with Lexington National Insurance Corporation.