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By Jud Webre • April 6, 2017

How To Get A Used Car Dealer License In New York

ny dealer license

 

You are legally allowed to sell up to 5 vehicles a year in New York if those vehicles are titled in your name and used primarily for personal, family, or household use. 

If you wish to flip cars for a profit in New York, then the NY Department of Motor Vehicles requires you to get a New York Dealer License.

Not sure if you need a dealer license? Check out this post on selling cars without a license.

How to get a NY Used Dealer License

 

To get a New York Dealer License, you'll need to complete an NY Dealer License Application,  get a Sales Tax ID Number, purchase insurance, secure a surety bond, and provide other necessary documents and fees. 

Concerned about money? See what you'd pay for a New York Dealer Bond now

 

 

Step #1: Complete Original Facility Application

You can download the form online or call the Office of Vehicle Safety and Clean Air at 1-518-474-4653 to get the form. 

 

Step #2: Complete Other Requirements

  • Get a Sales Tax ID Number and Certificate of Authority from the NY Department of Tax and Finance.
  • Obtain Worker's Compensation Insurance, unless you plan to have no employees, in which case you can mention this in your application and forego getting the insurance
  • If you are an individual or partnership, you will need to get a Business Certificate from the County Clerk.
  • If you are a CORP or LLC, obtain Filing Receipt from NYS Department of State

  • Provide proof that you have permission to use your dealership property (notarized statement from property owner, lease (may be contingent on facility approval), sub-lease with primary lease, mortgage, deed or receipted tax bill)

You will also need to purchase a dealer starter kit and sign.

 

Step #3: Purchase a NY Motor Vehicle Dealer Bond

A New York Motor Vehicle Dealer Bond is a type of surety bond that protects your customers. If your customers feel you are running an unethical business, they can make a claim against your bond.

The bond amounts are as follows:

  • $20,000 bond if selling less than 50 used vehicles/year
  • $100,000 bond if selling more than 50 used vehicles/year

You will pay somewhere between 1-15% of the total bond amount, based on your personal credit. This would be a one-time payment, not a monthly payment.

The best way to see what you'd pay is to get a free quote:

Get FREE NY Car Dealer Bond Quotes

 

Not sure how to get a NY Motor Vehicle Dealer Bond? Use this interactive tool to help you out.

Have bad credit? We can still get you bonded. Check out our bad credit options.

Nervous about paying for your bond? We can help you finance.

 

Step #4: Pay fees

  • $37.50 non-refundable NY Dealer License application fee
  • $450 NY Dealer License registration fee.
 
If you are not approved for an NY Dealer License, the $450 fee will be refunded to you.

 

Step #5: Submit

Mail or bring your NY Dealer License forms, documentation, and NY Motor Vehicle Bond to the Commissioner of Motor Vehicles. 

Bureau of Consumer and Facility Services
Attention: Application Unit
P.O. Box 2700
Albany, NY 12220-0700

 

Step #6: Wait

Wait for the Commission of Motor Vehicles’ to process your NY Used Dealer License application. This could take up to 4 weeks.

Be prepared for a automotive facilities inspector (AFI) to interview you and inspect your dealership premises during this waiting period. Not sure what to expect at your dealership inspection? Read this.

  • If you are not accepted, you will be refunded for the $450 Registration Fee.
  • If you are accepted, you will be issued a New York Used Car Dealer License.

 

For more information on applying for a NY Dealer License visit the New York Dealer License page.
 

License Expiration and Renewal

 
New York Dealer Licenses are valid for 2 years from the date they are issued. At this time, you will need to renew your license and bond.
 
You can renew your dealer license online or by mail. For information on how to renew, view the Renew A Business License or Registration page.
 

View our FREE EBOOK: "The Ultimate Guide To Car Dealer Licensing"

 

Related Articles:

How To Get An Auto Dealer Bond

Motor Vehicle Dealer License FAQ

How To Open Your Own Car Dealership [Infographic]

The Surety Bond Claim Process For Car Dealers (And How To Avoid It)