Surety bonds • New York
New York Auto Dealer Bond: $20,000, $50,000, or $100,000 Requirements and Cost
New York requires a surety bond for registered motor vehicle dealers under Vehicle and Traffic Law § 415(6-b). Used vehicle dealers need $20,000 if they are new or sold 50 or fewer vehicles in the prior year, or $100,000 if they sold more than 50. Franchised new car dealers need $50,000. Published prices for the $20,000 bond start around $160 a year.
This guide covers bond amounts, exemptions, DMV filing rules, and costs. Blake Insurance Group is an independent agency, and a licensed agent can help you compare options.
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New York dealer bond amounts
| Dealer type | Bond amount |
|---|---|
| First-time applicant, or used dealer that sold 50 or fewer vehicles last year | $20,000 |
| Used dealer that sold more than 50 vehicles last year | $100,000 |
| Franchised (new) dealer of cars, SUVs, and light trucks | $50,000 |
Sources: New York DMV, NY DFS Circular Letter No. 2 (2017). These amounts took effect March 28, 2017.
Exemptions
According to the New York DMV, dealers who sell only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, or snowmobiles are exempt from the bond requirement.
Filing rules
- Submit a complete original, sealed and signed bond with power of attorney papers, on the DMV dealer bond form (VS-3).
- The business name and mailing address on the bond must exactly match your application.
- Sureties must give the DMV 60 days’ notice before a bond lapses.
Sources: New York DMV, NY DFS Circular Letter No. 2 (2017).
How much a New York dealer bond costs
| Bond | Published price |
|---|---|
| $20,000 used dealer bond, 1 year | $160 |
| $20,000 used dealer bond, 3 years | $400 |
| $50,000 or $100,000 bonds | Quoted individually, often about 0.5% to 3% of the bond |
Prices published by Surety Bonds Direct. Rates on larger bonds depend on credit and experience.
Bond vs. dealer insurance
The bond protects customers and the state, not the dealership; if the surety pays a claim, the dealer must repay it. Dealers usually also carry garage liability, dealer’s open lot, and commercial auto insurance. See our surety bond vs. insurance guide.
New York auto dealer bond FAQs
How much is a New York used car dealer bond?
$20,000 for first-time applicants or dealers selling 50 or fewer vehicles a year, and $100,000 for dealers selling more than 50. Published prices for the $20,000 bond start around $160 a year.
What bond does a New York franchised dealer need?
$50,000.
Which New York dealers are exempt from the bond?
Dealers selling only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, or snowmobiles.
Related guides
- New York surety bonds
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- California auto dealer bond
- Texas auto dealer bond
- Commercial auto insurance
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- Surety bond cost calculator
- Buy a surety bond online
- License and permit bonds
- South Dakota auto dealer bond
- West Virginia auto dealer bond
- New Mexico auto dealer bond
- Nebraska auto dealer bond
- Kansas auto dealer bond
- Iowa auto dealer bond
- Oklahoma auto dealer bond
- South Carolina auto dealer bond
- Alabama auto dealer bond
- Tennessee auto dealer bond
- Washington auto dealer bond
- Michigan auto dealer bond
- Pennsylvania auto dealer bond
- New Jersey auto dealer bond
- Illinois auto dealer bond
- Georgia auto dealer bond
- Virginia auto dealer bond
- North Carolina auto dealer bond
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Important information
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Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your dealership, and a licensed agent will help with your New York dealer bond, or start a bond quote online with our partner.
