How to get a used car dealer license in New York
A practical walkthrough of the Motor Vehicle Dealer application — fees, bond, timeline, and what to expect at each step. Verified against the official agency as of June 2026.
Getting a Motor Vehicle Dealer used-car dealer license in New York:
- Surety bond required
- $20,000 (under 50 cars/yr; $100,000 over 50)
- Application fee
- ~$487.50 dealer business fee
- License term
- Two years (biennial)
- Typical timeline
- 4 – 8 weeks
- Typical first-year cost
- $900 – $3,000
This guide is informational and does not replace official New York requirements. Always verify with the New York State DMV before applying.
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Who can apply for a Motor Vehicle Dealer license
New York requires anyone in the business of buying or selling used vehicles to register as a Motor Vehicle Dealer with the DMV under Vehicle and Traffic Law §415. The registration authorizes you to retail used vehicles in New York.
In New York this is also commonly called an auto dealer license, car dealer license, or motor vehicle dealer license — all the same Motor Vehicle Dealer authority to sell used vehicles.
- An established business location with the required display area, office, locked record cabinet, heat/electricity, desk, and a dedicated business phone
- Permanent signage visible from the street (red background, white lettering, 3' x 2', with your facility number in 2-inch block lettering)
- Proper zoning for vehicle sales at the location
- A surety bond — $20,000 if you sell fewer than 50 vehicles a year, $100,000 if you sell more
- A registered business entity and sales-tax registration (Certificate of Authority)
- Clean background; the DMV reviews the principals
Step-by-step process
- 1
Set up a compliant facility
Secure a location zoned for vehicle sales with a display area, office, locked filing cabinet, business phone, and the required DMV signage (red background, white lettering, with your facility number). The DMV inspects before issuing the registration.
- 2
Register your business and get a Certificate of Authority
Form your business entity and register for New York sales tax (Certificate of Authority) so you can collect and remit tax on sales. You'll need an EIN from the IRS.
- 3
File the surety bond
Post the required motor vehicle dealer bond before applying — $20,000 if you'll sell fewer than 50 vehicles a year, $100,000 if more. You pay an annual premium (typically 1-3%), not the full amount. The bond must be filed with the DMV per VTL §415.
- 4
Submit the dealer application and fees
Complete the Original Facility application package and pay the dealer business fee (about $487.50). Include your bond, proof of business registration, lease/deed, and facility photos.
- 5
Pass the facility inspection
A DMV representative inspects your location to confirm the signage, display area, office, and records setup meet the requirements. Have everything operational before the inspection.
- 6
Receive your registration and dealer plates
Once approved, the DMV issues your dealer registration and facility number, and you can obtain dealer plates and MV-50 (Retail Certificate of Sale) books for documenting your sales.
New York dealer license cost — fees breakdown
| Item | Amount |
|---|---|
Dealer business fee Paid at application. | ~$487.50 |
MV-50 certificate-of-sale books Approx.; the dealer's proof-of-sale forms. | ~$260 |
Surety bond premium (annual) 1-3% of the bond, by credit and sales volume. | $200 – $3,000 |
Dealer plates (per plate) Set by the DMV; obtained after registration. | Varies |
Business registration + Certificate of Authority Entity filing + free NY sales-tax registration. | Varies |
Surety bond requirement
New York requires every used-vehicle dealer to post a $20,000 (or $100,000) surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.
You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1-3%of the bond's face value. Your actual premium depends on personal credit and business history.
New York scales the bond by volume: $20,000 if you sell fewer than 50 vehicles a year, $100,000 if you sell more. You pay an annual premium, not the full amount. The bond is filed with the DMV before the registration is issued and must stay current.
Renewal
New York motor vehicle dealer registrations run for two years and renew biennially. Keep your bond current, your facility compliant, and your signage in place. The DMV sends a renewal notice; renew before expiration to avoid having to reapply.
Common questions
Do I need a brick-and-mortar location to sell cars in New York?+
Yes. New York requires an established facility with a display area, office, locked record cabinet, business phone, and DMV-specified signage — and it must pass a DMV inspection. You can't register a dealership from a home address that isn't zoned and set up for vehicle sales.
How big does my New York dealer bond need to be?+
It depends on volume: a $20,000 bond if you sell fewer than 50 vehicles per year, and a $100,000 bond if you sell more than 50. You pay an annual premium (typically 1-3% of the bond), not the full amount.
What is the MV-50 I keep hearing about?+
The MV-50 (Retail Certificate of Sale) is the dealer's bill of sale — the proof-of-ownership document a New York dealer gives the buyer, who then uses it (with the MV-82) to register and title the vehicle. Dealers buy MV-50 books from the DMV.
What signage does New York require?+
A permanent sign visible from the street with a red background and white lettering, about 3 feet by 2 feet, showing your DMV facility number in 2-inch block lettering. The sign is checked at the facility inspection.
How long does it take to register as a dealer in New York?+
Most applicants are licensed in about 4 to 8 weeks once the facility is built out and the bond is filed. The biggest variable is scheduling and passing the DMV facility inspection.
How much does a New York dealer license cost?+
Plan for about $900 – $3,000 in the first year. That covers the ~$487.50 dealer business fee application fee and the $20,000 (under 50 cars/yr; $100,000 over 50) surety bond — you pay an annual premium of roughly 1-3% of the bond, not the full amount — plus business-formation, facility, and dealer-plate costs. See the full fees breakdown above.
How do I get dealer plates in New York?+
Dealer plates are separate from the license itself. Once your Motor Vehicle Dealer license is approved, you apply for dealer plates and pay a per-plate fee (listed in the fees breakdown above). You can't obtain dealer plates before the license is issued.
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