Motor Vehicle Dealers - New or New and Used Vehicles

The State of New Mexico Vehicle Dealer or Dismantler Bond is a surety bond required for businesses engaged in selling new vehicles, used vehicles, or dismantling vehicles within the state. This bond ensures compliance with state regulations governing motor vehicle dealer operations and protects both the State of New Mexico and consumers from potential financial losses.

Vehicle dealers selling new or new and used vehicles, as well as vehicle dismantlers, must obtain this bond as part of their licensing requirements. The bond serves as a financial guarantee that the dealer will conduct business in accordance with New Mexico motor vehicle laws and regulations, including proper handling of titles, warranties, and consumer transactions.

The bond protects the State of New Mexico as the obligee and provides recourse for consumers who suffer financial damages due to the dealer's violation of state laws or fraudulent business practices. Coverage amounts are either $12,500 or $50,000 depending on the specific requirements for the dealer's license type.

This bond has a one-year term and is renewable annually. All bonds share a common expiration date of March 31st, ensuring uniform renewal timing across all New Mexico vehicle dealer bonds.