Motor Vehicle Dealers - Used Vehicles Only

The New York Used Dealer Bond is a surety bond required under New York State Vehicle and Traffic Law Section 415(6-b) for businesses engaged in the sale of used motor vehicles. This bond ensures that used car dealers operate in compliance with state regulations and maintain ethical business practices.

Who Needs This Bond: Used vehicle dealers operating in New York State must obtain this bond as part of their licensing requirements. The bond is specifically required for dealers who sell previously owned vehicles and is mandated by the New York Department of Motor Vehicles.

Protection Provided: This bond protects consumers and the State of New York from financial losses resulting from the dealer's failure to comply with applicable laws and regulations. It provides recourse for customers who suffer damages due to fraudulent practices, misrepresentation, or other violations of state vehicle and traffic laws by the bonded dealer.

Bond Details: The bond is available in amounts of $20,000 or $100,000, with the required amount determined by the dealer's business volume and state requirements. The bond term is one year and must be renewed annually to maintain continuous coverage and licensing compliance.