New York requires a dealer license once you sell more than five vehicles a year, or display three or more vehicles at a time or within a single month. The license comes from the New York DMV, and the steps below cover the whole process.
At a glance
| Issued by | New York State DMV |
|---|---|
| Surety bond | $20,000 up to 50 used vehicles a year; $100,000 over 50; $50,000 franchised dealers |
| Starter kit | $200 from a DMV-approved vendor |
| Application fee | $487.50 |
8 steps to your license
1. Decide what kind of dealer you will be
- Retail dealer (new): sells new vehicles.
- Retail dealer (other): sells used cars and wholesale, plus motorcycles, trucks, trailers and RVs.
- Wholesale: sells to other dealers only, not to consumers.
2. Register the business
An LLC, a corporation or another form, registered with the county clerk.
3. Find a location that qualifies
The site must be clearly separated from neighboring businesses, have a lot to display vehicles, a mailbox, a locking cabinet or safe, heat, electricity, desks and chairs, a working business phone, and meet local zoning. The sign rules are strict:
- White letters on a red background
- At least 3 feet wide and 2 feet tall
- The words "REGISTERED [facility number] STATE OF NEW YORK MOTOR VEHICLE DEALER" in 2-inch block letters
- Permanently attached and visible from the nearest street
4. Get the dealer bond
Get the bond before you apply, with the business name and address exactly as on the application. The amount depends on your sales:
- 50 or fewer used vehicles a year: $20,000
- More than 50 used vehicles a year: $100,000
- Franchised dealers of cars, SUVs and light trucks: $50,000
- Dealers of only trailers, motorcycles or boats: no bond
5. Get liability insurance
It must cover the vehicles the dealership owns and those that will carry dealer plates.
6. Buy a dealer starter kit
Sold by DMV-approved vendors for $200, it includes the book of registry, bills of sale, odometer statements and warranty forms.
7. Schedule the location inspection
You may apply before this step, but an automotive facilities inspector has to visit and approve the location.
8. Submit the application
Include:
- The original sealed and signed dealer bond under Vehicle and Traffic Law Section 415, with the power of attorney in the business name
- Proof you may use the location, such as a notarized lease statement
- The certificate of registration and filing receipt (LLCs and corporations)
- The federal employer ID number
- Proof of workers' compensation and disability insurance
- The sales tax Certificate of Authority from the Department of Taxation and Finance
- A copy of a government-issued ID for every applicant
- Receipts for the starter kit and the signs
- The $487.50 application fee
Mail everything to NYS DMV Bureau of Consumer and Facility Services, Application Unit, P.O. Box 2700, Albany, NY 12220-0700.
Before you apply
Requirements, fees and bond amounts change. Confirm the current rules with the New York DMV before you file. This guide is general information, not legal advice; for questions about your situation, talk to a lawyer.
Licensed? Stock your lot at the Kendall FL Auto auction
Licensed dealers can register to bid at the Kendall FL Auto auction, check the run list of upcoming lots, or consign vehicles to the sale.