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
New York-Specific Facts for Dealer Surety Bond
New York Vehicle transfer fees and requirements
In New York, the title transfer fee is $50 and registration costs $26 - $140 for 2-year registration based on weight. Vehicle sales are subject to 4% state tax plus local taxes (total 7-8.875% in NYC). New York does not require notarization for private-party vehicle transfers. Emission testing is required in New York — verify the vehicle passes before completing the sale.
- Annual safety and emissions inspection required
- Sales tax based on county of residence, not purchase location
- Bill of sale (MV-912) required for title transfer
- Insurance and inspection must be current before registration
Official New York bill of sale form
The official New York bill of sale form is MV-912 (Vehicle Bill of Sale). BillOfSaleNow generates a document that meets all New York requirements and can be used in place of the official form.
New York sales tax on vehicle purchases
New York has a 4% state sales tax rate. 4% state plus county/city taxes (total up to 8.875% in NYC). Private-party vehicle sales in New York are subject to sales tax. Sales tax based on county of residence; applies to private sales. The title transfer fee is $50.
New York bill of sale statistics
BillOfSaleNow has generated 6,134 bill of sale documents for New York transactions, with 165 generated this month alone. The most popular vehicle type is car.
More New York Vehicle Guides
- Mechanic's Lien on Vehicle in New York
- New Resident Vehicle Registration in New York
- Out-of-State Buyer Vehicle in New York
- License Plate Transfer in New York
- Rebuilt Title Cars in New York
- Rental Vehicle Buyout in New York
Each guide is written specifically for New York laws, agencies, and procedures. Bookmark for future reference.
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.
Ready to Document Your Vehicle Sale?
Create a legally compliant New York bill of sale in minutes.
Generate Bill of SaleSource: New York State DMV Dealer Licensing. Verify current bond amounts with your state DMV before purchasing.