New York Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
New York Auto Dealer Bond Key Facts
Governed by N.Y. Veh. & Traf. Law § 415(6-b).
The basics
What Is an Auto Dealer Bond in New York?
A New York auto dealer bond is a surety bond of $20,000, $50,000, or $100,000 — the amount depends on your dealer type and sales volume — that motor vehicle dealers must file with the New York State DMV to get and keep a dealer registration. New York calls it the Dealer Bond Under Vehicle and Traffic Law Section 415(6-b), filed on DMV form VS-3. It is a promise, backed by a surety company, that you will follow New York’s dealer laws; if you break them and cost a customer money, the bond can pay them back.
Good to know - Required for retail and wholesale motor vehicle dealers that sell passenger cars and light trucks. A first-time applicant or a dealer that sold 50 or fewer vehicles the previous calendar year posts $20,000; more than 50 vehicles, $100,000; a franchised new motor vehicle dealer posts $50,000. Dealers that sell only trailers, motorcycles, vehicles over 10,000 lbs., ATVs, boats, or snowmobiles are exempt.
The bond is a three-way agreement. You (the dealer) are the “principal,” the New York State DMV is the “obligee” that holds the bond, and the surety company backs it. It protects your customers — not you or your business. If the surety pays a claim, you must pay the surety back.
The amount is set by Vehicle and Traffic Law § 415(6-b). A first-time applicant, or a used retail or wholesale dealer that sold 50 or fewer vehicles the previous calendar year, posts $20,000. A dealer that sold more than 50 vehicles posts $100,000. A franchised new motor vehicle dealer posts $50,000.
Not every dealer needs one. Dealers that sell only trailers, motorcycles, vehicles over 10,000 lbs., ATVs, boats, or snowmobiles are exempt from the bond requirement. If you sell passenger cars or light trucks — new or used, retail or wholesale — the bond applies to you.
Qualification
What You Need to Qualify for a New York Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You know which dealer registration you are applying for — franchised new dealer, used retail dealer, or wholesale dealer — because it sets your bond amount.
- You know your bond amount: $20,000 if this is your first application or you sold 50 or fewer vehicles last calendar year, $100,000 if you sold more than 50, or $50,000 if you are a franchised new dealer. We issue the bond for you.
- You have a business entity ready — a filing receipt from the NYS Department of State (corporation or LLC) or a business certificate from your County Clerk (individual or partnership).
- You have (or have applied for) a New York State Sales Tax Certificate of Authority for your business.
- You have a physical place of business in New York that meets the DMV’s facility requirements, with proof you own or lease the property.
- If you have employees, you have proof of Workers’ Compensation and Disability insurance coverage.
Step by step
How to Get an Auto Dealer Bond in New York: Step by Step
Choose your dealer registration type
Decide whether you are registering as a franchised new dealer, a used retail dealer, or a wholesale dealer. Your type and sales volume set your bond amount: $20,000 for a first-time applicant or a used dealer selling 50 or fewer vehicles a year, $100,000 above 50, and $50,000 for a franchised new dealer.
Set up your business and place of business
Form your business (get a filing receipt from the NYS Department of State for a corporation or LLC, or a business certificate from your County Clerk), get a New York Sales Tax Certificate of Authority, and set up a physical facility that meets the DMV’s requirements in the Dealer/Transporter Requirements packet.
Dealer/Transporter Requirements (VS-142)Buy your surety bond
Purchase your dealer bond in the amount your registration type requires. Market Canopy issues the bond on New York’s official Dealer Bond form (VS-3), sealed and signed by the surety with power of attorney papers made out to your exact business name and address — you do not download, complete, or sign the bond form yourself.
Complete the Original Facility Application
Fill out and manually sign the Original Facility Application (VS-1D). The DMV does not accept stamped or typed signatures. Enter your New York State tax ID or attach a copy of your Sales Tax Certificate of Authority.
Original Facility Application (VS-1D)Gather your supporting documents and fees
Assemble your business filing receipt or business certificate, photo ID copies for everyone on the application, proof of Workers’ Compensation and Disability coverage (or note that you have no employees), proof you own or lease your facility, your issued bond, and fees paid by check or money order to the “Commissioner of Motor Vehicles.”
Mail your packet and keep your bond current
Mail everything to the Bureau of Consumer and Facility Services, Application Unit, New York State DMV, P.O. Box 2700 — ESP, Albany, NY 12220-0700. Albany checks the application for completeness, then a regional office reviews it. Once registered, keep the bond in effect continuously — including at every renewal — and raise it to $100,000 if you sell more than 50 vehicles in a calendar year.
Paperwork
New York Dealer Bond Forms & Documents
The main dealer application you complete, manually sign, and mail to the DMV.
View formThe DMV’s official requirements packet for dealers and transporters.
View formThe state’s official bond form. Market Canopy issues this bond for you — you do not fill it out; you submit the issued bond with your application.
View formYou'll also need
Cost
How New York Auto Dealer Bond Pricing Works
You do not pay the full bond amount. New York sets the amount by law — $20,000 for a first-time applicant or a used dealer selling 50 or fewer vehicles a year, $100,000 above 50 vehicles, and $50,000 for a franchised new dealer. What you actually pay is the premium, a small percentage of that amount.
Your premium is set by underwriting, mostly your personal credit and business history. Well-qualified dealers pay the lowest rates. Use the quote flow on this page for your exact price; the state application and registration fees are separate from the bond premium.
Worked example
If you are opening your first used-car dealership, your bond amount is $20,000 — that is the coverage set by law, not your cost. You pay only a premium, a small percentage of the $20,000, based on your credit and history.
Filing
Filing Information
New York State Department of Motor Vehicles (DMV) — Bureau of Consumer and Facility Services
Filing notes
Market Canopy issues your New York dealer bond on the state’s official Dealer Bond form (VS-3) with the surety’s seal, signature, and power of attorney papers made out to your exact business name and address. You do not fill out or sign the bond form yourself — you submit the issued bond with your Original Facility Application.
Mail your application packet — the VS-1D application, the issued VS-3 bond, your supporting documents, and fees paid by check or money order to the “Commissioner of Motor Vehicles” — to the Bureau of Consumer and Facility Services, Application Unit, P.O. Box 2700 — ESP, Albany, NY 12220-0700. The Albany office checks that the application is complete, then sends it to a regional office for review.
Section 415(6-b) requires you to obtain the bond and “continue [it] in effect,” so keep a current bond on file the whole time you are registered — including at every renewal — to avoid a lapse. If your sales grow past 50 vehicles in a calendar year, your bond amount rises from $20,000 to $100,000.
FAQ
New York Auto Dealer Bond FAQ
Yes, for most dealers. Under Vehicle and Traffic Law § 415(6-b), every registered dealer that sells passenger cars or light trucks must keep a surety bond on file with the NYS DMV. Dealers that sell only trailers, motorcycles, vehicles over 10,000 lbs., ATVs, boats, or snowmobiles are exempt.
It depends on your dealer type and volume: $20,000 for a first-time applicant or a used retail/wholesale dealer that sold 50 or fewer vehicles the previous calendar year, $100,000 if it sold more than 50, and $50,000 for a franchised new dealer. That is the coverage set by law, not your cost — you pay only a premium, a small percentage of the bond amount.
$20,000, unless you are a franchised new dealer ($50,000). The statute sets $20,000 for every dealer “applying for a registration certificate in the first instance.” If you later sell more than 50 vehicles in a calendar year, your bond amount rises to $100,000.
No. Market Canopy issues your bond on the DMV’s official VS-3 form, sealed and signed by the surety with power of attorney papers made out to your exact business name and address. You simply submit the issued bond with your Original Facility Application.
The New York State DMV holds your bond as the obligee. It protects your customers if you violate New York’s dealer laws. It is not insurance for your own business — if the surety pays a claim, you must pay the surety back.
The whole time you are registered. Section 415(6-b) requires you to obtain the bond and continue it in effect, so keep a current bond on file at initial registration and every renewal. You can typically buy the bond in 1-, 2-, or 3-year terms and renew it before it expires.
Mail your VS-1D application, the issued VS-3 bond, your supporting documents, and fees (check or money order to the “Commissioner of Motor Vehicles”) to the Bureau of Consumer and Facility Services, Application Unit, New York State DMV, P.O. Box 2700 — ESP, Albany, NY 12220-0700. Call 1-518-474-0919 with questions.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with New York State Department of Motor Vehicles (DMV) — Bureau of Consumer and Facility Services before you file. This page is informational and not legal advice.
FAQ
New York Auto Dealer Bond Questions
The cost of a New York auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most New York auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your New York license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
