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License Bond

Automobile broker business surety bond

This bond is required for anyone who wants to operate as an automobile broker in New York State. An automobile broker helps people buy or sell vehicles, acting as a middleman between buyers and sellers. The state requires this $100,000 bond to protect consumers from potential losses if the broker acts dishonestly, bre…

Overview

What it is.

This bond is required for anyone who wants to operate as an automobile broker in New York State. An automobile broker helps people buy or sell vehicles, acting as a middleman between buyers and sellers. The state requires this $100,000 bond to protect consumers from potential losses if the broker acts dishonestly, bre…

Who usually needs it

Automobile broker businesses, defined as any person who, for a fee, commission, or other valuable consideration paid by a consumer, offers to provide, provides, or represents that they will provide a service of purchasing, arranging, assisting, or effecting the purchase of an automobile as an agent, broker, or intermediary for a consumer.

Pricing & timing

What to expect.

Generic pricing

License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…

Typical timeframe

Issuance timeframe varies by bond type and underwriting

Application

What to do next.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. Keep your effective date and renewal date on file with us.
Start the application.

You are on the exact bond page. The next step is to start the quick application.

Details

Bond details.

StateNY
Bond amount$100,000
Term lengthContinuous
ObligeeNew York State Department of State, Division of Licensing Services
RenewalThe bond must be maintained in effect as long as the business operates. While the bond itself is continuous, the business must renew its registration with the New York Department of Motor Vehicles every two years.
Bond classLicense Bond
CategoryMotor Vehicle
BondAutomobile broker business surety bond
Statutory referenceNew York General Business Law Article 35-B, Section 740-a
JurisdictionState
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Next step

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