License & Permit Bonds

How to Open a Car Dealership in New York


It takes a lot to open a vehicle dealership in New York. It’s not as simple as just buying a lot and placing cars for sale on it.

To apply to be a retail dealer licensed by the Department of Motor Vehicles in New York State, you have to submit an Original Facility Application, proof that you have permission to use the property at the business location noted, a sales tax ID number and copy of your Sales Tax Certificate of Authority,  proof of Workers Compensation Insurance for your employees if you have any, a copy of the driver license or other government issued ID for everyone listed on the application, a receipt for your purchase of the dealer’s starter kit and signs, all required fees, a Filing Receipt found on the New York State Department of State website or a Business Certificate from your county’s County Clerk, and a copy of your original sealed and signed surety bond. Learn more about how to open a dealership in New York.

Do not submit your application without a surety bond, using this form. The amount of the bond depends on the number of vehicles you anticipate selling for used motor vehicle dealers. If you anticipate selling fewer than 50, a $20,000 bond is required. If greater than 50, a $100,000 surety bond is required.

Franchised dealers selling cars, SUVs, or light trucks must purchase a $50,000 surety bond. Dealers selling only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, or snowmobiles are exempt from the dealer bonding requirements.

Where can you instantly purchase new or used motor vehicle dealer bonds?

Colonial Surety offers the direct and digital way to obtain a new or new and used motor vehicle dealer surety bond. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be available instantly. It’s that simple!