Do I need a New York auto dealer bond?
New York licenses auto dealers based on the type and number of cars sold in the last year, and their surety bond rates vary as well:
- Used motor vehicle dealers (50 or fewer cars sold in a calendar year)—$20,000 surety bond
- Used motor vehicles dealers (51 or more cars sold)—$100,000 surety bond
- New motor vehicle dealers – $150,000 surety bond
How much does this bond cost?
In 2017, auto dealer bond amounts in New York increased significantly for many dealers. However, that doesn’t mean your surety bond premium (the annual rate for your bond) is exorbitant: it’s only a percentage of the bond coverage that you pay annually.
Your surety bond price depends on your credit history and is usually .5-5% of the bond’s total coverage amount. And if your credit improves, your bond premium could improve when you renew, too! We have special rates below the typical 1% premium other companies charge.
When do New York auto dealer bonds expire?
These bonds do not expire. They’re continuous, meaning as long as you pay the bond premium on time, have the correct amount of coverage and have a valid New York auto dealer license, your bond will be in effect.
Best practice: When renewing your dealer license, check that your surety bond is up-to-date, as well.
I just purchased my bond — now what?
If you’ve purchased a New York auto dealer bond and completed all the necessary licensing paperwork — including obtaining a Certificate of Authority and proof of insurance coverage, including Workers’ Comp—send all documents and fees to the state:
Bureau of Consumer & Facility Services
P.O. Box 2700
Albany, NY 12220-0700