Auto dealer bond in New York: amount and cost
New York sets three dealer bond amounts, by dealer type and last year's sales: $20,000, $50,000 or $100,000.
Auto dealer bond premium in New York
$150 to $300
estimated, per year, for a $20,000 bond
| Bond the state requires | $20,000 |
| Which amount | Used or wholesale dealer, 50 or fewer sales last year |
| Rate for credit 700 or higher | 0.75 % to 1.5 % a year |
| Term | 1 year, renewed yearly |
Estimate from published rate grids, not a quote. N.Y. Veh. & Traf. Law § 415(6-b). Amount read on the official page, October 22, 2026.
Compiled by Radif Partners · Method and sources · rule read October 22, 2026
New York is the state read for this site that grades its dealer bond most finely. Under section 415(6-b) of the Vehicle and Traffic Law, as the DMV explains it, a used or wholesale motor vehicle dealer that sold 50 or fewer vehicles in the previous calendar year files a $20,000 bond; a franchised new car dealer files $50,000; and a used or wholesale dealer that sold more than 50 vehicles files $100,000. The volume test is applied each year, so a growing used dealer moves from $20,000 to $100,000 once it passes 50 sales. Dealers of trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats and snowmobiles are exempt. Premiums follow the amount: on published dealer grids with a credit score of 700 or more, about $150 to $300 a year for $20,000, $375 to $750 for $50,000, and $750 to $1,500 for $100,000. Rule read on October 22, 2026.
Three amounts, one test
The New York DMV's dealer bond page (NY DMV) lists the amounts by category, and the top tier applies to a retail or wholesale dealer, other than new, that sold more than 50 vehicles during the previous calendar year. The test is the number of vehicles sold in the previous calendar year, not the current one, so the bond is set at each registration and renewal from last year's records. A used dealer that crosses 50 sales during the year keeps its $20,000 bond until the next renewal, then files $100,000.
Franchised new car dealers file $50,000 regardless of volume. The jump from $20,000 to $100,000 for used dealers is the steepest step in any state read: a fivefold increase in the bond, and in the premium, at the 51st sale.
Your New York tier and its premium
Auto dealer bond premium in New York
$200 to $600
| Bond the state requires | $20,000 |
| Which amount | Used or wholesale dealer, 50 or fewer sales last year |
| Rate for credit 650 to 699 | 1 % to 3 % a year |
| Term | 1 year, renewed yearly |
Who is exempt
The requirement covers motor vehicle dealers. Dealers whose business is limited to trailers, motorcycles, vehicles with a gross weight over 10,000 pounds, all-terrain vehicles, boats or snowmobiles are exempt from this bond. A dealer that sells both exempt and regular vehicles needs the bond for the regular ones.
What it costs, tier by tier
Premiums scale with the amount, so the tier matters more than small differences between sureties. With a score of 700 or more, a $100,000 bond is estimated at $750 to $1,500 a year; between 600 and 649, $2,500 to $5,000. A used dealer approaching 50 sales can plan for the higher bond before the renewal. The dealer bond overview compares New York with North Carolina, which adds amounts by salesroom instead of by volume.
Keep your sales records for the calendar year at hand when renewing: the DMV relies on them to place you in a tier, and the surety needs the same figure to write the right amount.
The New York rule as read
| Item | Value |
|---|---|
| Used or wholesale dealer, 50 or fewer sales last year | $20,000 |
| Franchised new car dealer | $50,000 |
| Used or wholesale dealer, more than 50 sales last year | $100,000 |
| Rule | N.Y. Veh. & Traf. Law § 415(6-b) |
| Line read | “$100,000: Retail or Wholesale Motor Vehicle Dealer (other than New) that sold more than 50 vehicles during the previous calendar year” |
| Page | dmv.ny.gov |
| Read on | October 22, 2026 |