Motor Vehicle Dealers - Used Vehicles Only

The State of New York Dealer Bond is a surety bond required under New York State Vehicle and Traffic Law Section 415(6-b) for motor vehicle dealers specializing in used vehicles only. This bond serves as a financial guarantee that the dealer will conduct business in accordance with state laws and regulations governing motor vehicle sales.

Who Needs This Bond: Used motor vehicle dealers operating in New York State must obtain this bond as part of their licensing requirements. The bond is specifically designed for dealers who sell used vehicles exclusively, not new vehicle dealers.

Protection and Coverage: The bond protects the State of New York and consumers from financial losses resulting from the dealer's failure to comply with applicable laws, fraudulent business practices, or breach of contract. Available in three coverage amounts - $20,000, $50,000, and $100,000 - the bond amount required depends on the specific circumstances of the dealership.

Term and Requirements: This bond has a one-year term and is renewable annually. Application requirements vary by bond amount: the $20,000 bond requires a signed application with business and personal indemnity from owners and spouses, plus a clean credit report. Higher bond amounts ($50,000 and $100,000) have additional requirements, with the $100,000 bond requiring financial statements and real estate ownership by principal business owners.