What Is the New York Motor Vehicle Dealer Bond?
Think of the New York motor vehicle dealer bond as a promise to your buyers and the state. Wrong a customer, and they can claim against the bond. The surety collects from you after.
Here is what New York requires:
- Up to 50 cars a year: $20,000.
- 51 to 200 cars a year: $50,000.
- 201 or more cars a year: $100,000.
Your bond size is based on how many cars you sold last year.
Who Needs This Bond in New York?
- Anyone selling vehicles for profit in New York 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 Much Will the Bond Cost?
Premium scales with bond amount; most low-volume dealers pay $200–$500 annually for the $20,000 bond:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| $20,000 bond, good credit | $200 – $400 | 1% – 2% |
| $50,000 bond, good credit | $500 – $1,250 | 1% – 2.5% |
| $100,000 bond, good credit | $1,000 – $2,500 | 1% – 2.5% |
| $50,000+, challenged credit | Up to 5% of bond | 3% – 5%+ |
How to Get Bonded — Step by Step
- Gather your New York dealer paperwork.
- Buy your motor vehicle dealer bond online here — fast quotes.
- Send it to the NYS DMV.
- Once cleared, get your license and sell cars.
Renewal & Continuous Bond Coverage
The New York bond does not expire on a set date; it runs until canceled. Just keep paying the premium so your license never lapses.
Frequently Asked Questions
Does the New York 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 York?
We shop several sureties for you, 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 York surety bonds · What is a surety bond? · How surety bond costs are calculated