Dealer Surety Bond in New York: $20,000 Requirement
New York requires all licensed dealers to maintain a $20,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Minimum for registered dealers. DMV may require higher amounts for dealers with prior violations.
Who Needs a Surety Bond in New York
All registered dealers (new, used, wholesale, rebuilder) must file a surety bond with the NY DMV.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Rebuilder
- Repair shop (optional)
How to Get a Bond in New York
Where to get it: Any company licensed to issue surety bonds in New York
NY DMV Form MV-901 (Dealer Bond) must be submitted at registration and renewed annually.
Annual Premium Cost
$100–$400/year
New York City dealers typically pay at the high end due to local risk factors and volume requirements.
How Claims Work
Injured party notifies DMV. DMV mediates; if unresolved, claimant sues dealer and surety in civil court.
NY allows the bond to be called when a dealer is found liable for title fraud or failure to transfer title within 30 days.
Penalties for Operating Without a Bond
New York-Specific Note
Frequently Asked Questions
How much is a dealer surety bond in New York?
New York requires a $20,000 surety bond for licensed dealers. Minimum for registered dealers. DMV may require higher amounts for dealers with prior violations.
Who requires a dealer surety bond in New York?
New York State DMV Dealer Licensing Unit requires the bond. All registered dealers (new, used, wholesale, rebuilder) must file a surety bond with the NY DMV.
How much does a dealer surety bond cost annually in New York?
Expect to pay $100–$400/year. New York City dealers typically pay at the high end due to local risk factors and volume requirements.
What happens if a New York dealer doesn't have a surety bond?
Dealer registration revoked; civil penalties up to $2,500/violation under VTL §415.
How does a surety bond claim work in New York?
Injured party notifies DMV. DMV mediates; if unresolved, claimant sues dealer and surety in civil court. NY allows the bond to be called when a dealer is found liable for title fraud or failure to transfer title within 30 days.
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Generate Bill of SaleSource: New York State DMV Dealer Licensing. Verify current bond amounts with your state DMV before purchasing.