I get asked this question all the time, “what is a motor vehicle dealer bond and why do i need it?”.
A NY Motor Vehicle Dealer Bond is required if you are interested in opening an auto dealership in NY.
If you sell less than 50 cars a year, then a NY Motor Vehicle Dealer Bond with a $20,000 penalty amount is required.
If you sell more than 50 cars a year, then a $100,000 penalty is required on the bond.
A motor vehicle dealer bond is required by NY Motor Vehicle Department. In layman’s terms it is a promise that you will fulfill all of the obligations required of you, if you obtain your Motor Vehicle Dealer License. It protects the customer as well against fraudulent or unethical transactions.
Here are a few examples of types of NY Motor Vehicle Dealer Bond of claims:
Selling stolen vehicles
Not reporting vehicles you sold
Not supplying vehicle titles for vehicles you sold
Not paying sales tax or other NY mandated fines or fees assessed by the State
A business must be financially stable to obtain a NY motor vehicle dealer bond. Credit plays a role in the price you pay and ease of obtaining the bond. Our pricing starts at $175 for two years for the $20,000 motor vehicle dealer bond.