← Back to Bond types
License Bond

Vehicle Dealer or Auto Recycler Bond

Applicants for a dealer's license, wholesaler's license, distributor's license, auto recycler's license, or title service company license. Required when: Before issuance of any dealer's license, wholesaler's license, distributor's license, auto recycler's license or title service company license. Exemptions: Casual sa…

Overview

What it is.

Applicants for a dealer's license, wholesaler's license, distributor's license, auto recycler's license, or title service company license. Required when: Before issuance of any dealer's license, wholesaler's license, distributor's license, auto recycler's license or title service company license. Exemptions: Casual sa…

Who usually needs it

Applicants for a dealer's license, wholesaler's license, distributor's license, auto recycler's license, or title service company license.

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.

StateNM
Bond amount$50,000
Term lengthContinuous
ObligeeNew Mexico Motor Vehicle Division
RenewalThe bond must be maintained and proof of bond supplied to the Motor Vehicle Division on an annual basis prior to the license renewal, which expires March 31st of each year.
Bond classLicense Bond
CategoryMotor Vehicle
BondVehicle Dealer or Auto Recycler Bond
Statutory referenceNMSA 1978, Section 66-4-7
JurisdictionState
More bonds
Next step

Ready to move forward?

Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.