What Is the New Mexico Motor Vehicle Dealer Bond?
Think of the New Mexico motor vehicle dealer bond as a promise to your buyers and the state. Break a dealer rule, and they can claim against the bond. You then repay the surety.
Here is what New Mexico requires:
- Dealers, wholesalers, and recyclers: $50,000.
- Motorcycle-only dealers: $12,500.
Who Needs This Bond in New Mexico?
- New and used car dealers in New Mexico must carry the bond to get a dealer license.
- Dealers who sell to other dealers need it too.
- When your license renews, you keep the bond active.
How to Get Bonded — Step by Step
- Apply for your dealer license.
- Get your bond here. Most quotes come back fast.
- Send the bond to the New Mexico MVD.
- Get your license and start selling.
Renewal & Continuous Bond Coverage
New Mexico dealer licenses renew every year. Your bond must stay in force the whole time. Renew early so you do not lose your license.
Frequently Asked Questions
Does the New Mexico bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you pay the surety back. The bond is not your own insurance.
How fast can I get bonded in New Mexico?
Most quotes come back fast, often within a day. Many bonds are issued the same day for good credit.
How much does the bond cost?
You pay a yearly premium — a small percent of the bond amount. Good credit means a lower rate.
How a Surety Bond Works
A dealer bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.
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Start Your ApplicationRelated: All New Mexico surety bonds · What is a surety bond? · How surety bond costs are calculated