New York Auto Dealer Bond
What is a New York auto dealer bond?
The New York Department of Motor Vehicles requires auto dealers in the state to post the following bonds to become or remain registered:
- Application for a dealer license
- Child support form BLS-43
- New motor vehicle dealers: $50,000 bond
- Retail or wholesale motor vehicle dealers that sold 50 or fewer vehicles in the previous 12 months: $20,000 bond
- Retail or wholesale motor vehicle dealers that sold more than 50 vehicles in the previous 12 months: $100,000 bond.
An auto dealer bond holds dealers and dealerships accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law, the customer can file a claim against the bond for compensation.
Get Your Auto Dealer Bond in New York:
Who needs a New York auto dealer bond?
Current and prospective auto dealers in New York must be bonded to maintain or obtain their registration. The state defines an auto dealer as someone engaged in buying, selling, or dealing in motor vehicles, trailers, or motorcycles. This includes retail and wholesale dealers and excludes mobile and manufactured home dealers.
If you sell or offer for sale more than five motor vehicles, trailers, or motorcycles in a calendar year, you’re considered a dealer. Learn more in the New York State Vehicle and Traffic Law Section 415.
How much does a New York auto dealer surety bond cost?
Auto dealer bond premiums can vary based on applicants’ credit scores: the higher your credit score, the lower your annual premium. If you have excellent credit, expect to pay as little as 1% or less of the total bond amount. Other factors that may impact the cost of your bond include your industry experience and business and personal financials.
ZipBonds can offer New York auto dealer bonds for as low as $100, depending on the type of auto dealer bond. Apply today!
How to Apply for Your Auto Dealer License in New York
Submit the following items to become licensed as an auto dealer in NY:
- Copy of your surety bond (see form preview)
- Dealer application
- Sales tax ID number and a copy of your sales tax certificate of authority
- Proof of permission to your business property
- Proof of workers’ compensation insurance
- Photocopy of driver’s license
- Receipt of purchase of dealer starter kit and signs
- Payment for required fees
- Filing receipt
You must send your physical application, documentation, and fees to the following address:
- NYS DMV
- Bureau of Consumer and Facility Services
- Application Unit
- P.O. Box 2700
- Albany, NY 12220-0700
After review, you will be contacted for an on-site investigation. If approved, the DMV will issue your registration certificate. See the DMV website for specific instructions, links to required documents, and more.
Frequently Asked Questions
How long does it take to get a motor vehicle dealer bond?
Since this bond requires underwriting, we can’t issue it to you instantly. However, the ZipBonds team always strives to deliver your bond to you within 24 hours of application.
Who regulates auto dealer bonds in New York?
The New York Department of Motor Vehicles regulates licensing and bonding for auto dealers in the state.
How do I renew my surety bond?
Your New York bond and license have a two-year term and must be renewed every other year. If you’re buying your bond from Zip, we’ll send a reminder when the expiration date is approaching. That way, you’ll have plenty of time to renew your bond and maintain your business license.
What happens if someone files a claim on my bond?
A customer can file a claim if a dealer commits fraud or unethical or unlawful business activity. If the claim is valid, the surety may cover the customer’s losses up to the total amount of the bond. The dealer will then need to pay back the surety for the damages.
Claims can be costly and damage your reputation and ability to get licensed and bonded again, so it’s best to do everything you can to avoid them.
How can I avoid claims on my auto dealer bond?
Avoid illegal activities and fraudulent business practices to prevent claims on your bond. Pay all taxes you owe. Also, ensure you comply with your licensing regulations. If a customer complains about something, address the issue immediately to avoid complaints from turning into costly claims.
How to Get Your New York Auto Dealer Bond
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to get bonded in a flash!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.