Dealer Bond Under New York State Vehicle and Traffic Law Section 415 (6-b)
New motor vehicle dealers, qualified dealers, and retail or wholesale used motor vehicle dealers. Required when: Required as a condition for obtaining or renewing a motor vehicle dealer registration certificate. Exemptions: Dealers who exclusively sell trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, s…
Overview
What it is.
New motor vehicle dealers, qualified dealers, and retail or wholesale used motor vehicle dealers. Required when: Required as a condition for obtaining or renewing a motor vehicle dealer registration certificate. Exemptions: Dealers who exclusively sell trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, s…
Who usually needs it
New motor vehicle dealers, qualified dealers, and retail or wholesale used motor vehicle dealers.
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.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
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.
StateNYBond amount$20,000 for dealers who sold 50 or fewer vehicles in the previous calendar year…Term lengthContinuousObligeeNew York State Department of Motor VehiclesRenewalThe bond remains in full force and effect until cancelled. The surety must provide 60 days' written notice of cancellation to the Commissioner of Motor Vehicles.Bond classLicense BondCategoryMotor VehicleBondDealer Bond Under New York State Vehicle and Traffic Law Section 415 (6-b)Statutory referenceNew York Vehicle and Traffic Law Section 415(6-b)JurisdictionState
