New York Motor Vehicle Dealer Bond
Overview
New York sizes its dealer surety bond to the kind of registration you hold and how many vehicles you sold last year. Vehicle and Traffic Law section 415(6-b) sets three tiers: every new motor vehicle dealer and qualified dealer must carry a $50,000 bond; a dealer applying for the first time or who sold fifty or fewer vehicles in the previous calendar year carries $20,000; and a dealer who sold more than fifty vehicles carries $100,000. The bond is a condition of obtaining the DMV registration certificate itself.
Who Needs This Bond?
Every dealer registering with the New York DMV under Vehicle and Traffic Law section 415 falls under the bond requirement — franchised new motor vehicle dealers, qualified dealers, and used or wholesale dealers alike. Which tier applies depends on your registration class and prior-year sales volume: new motor vehicle dealers and qualified dealers post $50,000 regardless of volume, first-time applicants and dealers who sold fifty vehicles or fewer post $20,000, and higher-volume dealers post $100,000.
What is this Bond For?
Section 415(6-b) spells out exactly what the bond guarantees: payment of all valid bank drafts and checks the dealer draws to purchase motor vehicles, transfer of good title on every vehicle the dealer sells, safekeeping of customer deposits between receipt and title transfer, and payment of fines imposed on the dealer by the commissioner. If the dealer fails on any of those obligations, the bond is the financial backstop injured parties and the state can look to.
When is it Required?
The bond must be obtained and kept in effect as a condition of getting the registration certificate — the statute's language is 'as a condition to obtaining a registration certificate pursuant to this section.' That means the bond has to be in place when you apply and must continue in effect for as long as you hold the registration. Volume-based tiers also mean your required amount can change: crossing the fifty-vehicle threshold in a calendar year moves a dealer from the $20,000 tier to the $100,000 tier.
Where Does it Apply?
This is a statewide New York requirement administered by the Department of Motor Vehicles, which registers dealers and transporters under Article 16 of the Vehicle and Traffic Law. The surety issuing the bond must be authorized to transact business in New York by the state's Department of Financial Services, and the bond form must be approved as to form by the commissioner.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed New York dealer bond is ready to file with the DMV as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement on this page is cited to the New York Vehicle and Traffic Law in the Official Sources section below — so you can verify the rules yourself before you buy. The fully online purchase flow is built to keep your DMV registration timeline moving.
Official Sources
The requirements described on this page are verified against the official sources below.
- Tiered bond amounts ($50,000 for new motor vehicle dealers and qualified dealers; $20,000 for first-time applicants or dealers selling ≤50 vehicles; $100,000 for dealers selling >50 vehicles); bond conditions covering bank drafts, title transfer, customer deposits, and fines; DFS-authorized surety requirement: New York Vehicle and Traffic Law §415(6-b) (verified July 16, 2026)