How to Get a Dealer License in New York
In New York, dealer licensing runs through the New York State Department of Motor Vehicles (NYS DMV), Office of Vehicle Safety and Clean Air. To get a used car dealer license in New York you'll need a registered business, a compliant location, a $20,000 or $100,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the New York auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the New York State Department of Motor Vehicles (NYS DMV), Office of Vehicle Safety and Clean Air's current pages before you file.
- Surety bond
- $20,000 or $100,000
- License term
- Two-year facility registration term; renew through the DMV Office of Vehicle Safety before expiration and keep the surety bond continuously in force.
- Sales threshold
- New York VTL §415 generally treats a person who sells, or offers for sale, five or more vehicles in a calendar year as a dealer required to register — verify the current threshold with the DMV for your situation.
- Pre-licensing
- None. New York does not require a pre-licensing course or dealer exam to register a used-vehicle dealer facility.
License types in New York
| License type | What it covers |
|---|---|
| Retail Motor Vehicle Dealer | Sells used (and/or new) vehicles to the end consumer from a registered New York facility. Registered under Vehicle and Traffic Law (VTL) §415. |
| Wholesale Motor Vehicle Dealer | Buys and sells only to other licensed dealers or at auction, not to the retail public. |
| New (Franchised) Motor Vehicle Dealer | Sells new cars, SUVs and light trucks under a manufacturer franchise; a provisional registration path (form VS-1PROV) applies. |
| Specialty / Limited Dealer | Dealers in trailers, motorcycles, vehicles over 10,000 lbs, ATVs, boats or snowmobiles — several of these classes are exempt from the surety-bond requirement. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Facility application fee | $37.50 | One-time fee filed with the VS-1 Original Facility Application |
| Dealer registration fee | $450 | Two-year facility registration term |
| MV-50 book (Retail Certificates of Sale) | $260 | Per book; one book is included in the initial approval package |
| Additional dealer plates | $125 per box of 25 | Initial demonstrator plates are issued with the registration; extra plates are ordered by the box |
| In-transit permit (temporary registration) | $12.50 | Per permit, valid 30 days, issued to a buyer who has no plate to transfer |
| Surety bond premium | ~$225–$1,000+ per year | Not a state fee — paid to a surety; varies with bond size and credit. Verify with a licensed surety. |
Step by step
- Form and register your business entity (file with the NY Department of State or County Clerk) and obtain a Sales Tax Certificate of Authority from the NY Tax Department.
- Secure a qualifying business location and confirm it meets the VS-142 facility requirements (sign, lot, physical barrier, office, secure storage).
- Obtain the required VTL §415(6-b) surety bond on DMV form VS-3 ($20,000 or $100,000 depending on volume; $50,000 franchised).
- Complete the VS-1 Original Facility Application with proof of workers' compensation coverage, property authorization, and government photo ID for all owners/officers.
- Mail the application, forms and fees ($37.50 application + $450 registration) to the Bureau of Consumer and Facility Services in Albany.
- Pass the on-site Vehicle Safety facility investigation, then receive your certificate of registration, MV-50 Retail Certificate of Sale book(s) and dealer plates.
Premises & temp tags
Location: A permanent, established place of business that meets the DMV facility standards on form VS-142: a permanently mounted sign visible from the street, a display area/lot, a clear and permanent physical barrier separating you from any other business, a dedicated business mailbox and phone, and an office with heat, electricity, a desk and chairs. Plates and certificates of sale must be kept in secure, locked storage. A Vehicle Safety inspector conducts an on-site facility investigation before final approval.
Temp tags / plates: New York does not use paper temporary tags. A dealer transfers the buyer's existing plates, or — under the Dealer Plate Issuance Program — assigns a permanent registration plate or issues a 30-day In-Transit Permit ($12.50) to a buyer who has no plate to transfer. Program eligibility requires being registered at least one year with 25+ retail sales annually and good standing.
New York-specific things to know
- The dealer bond is tiered by prior-year volume: cross 50 vehicles and the required bond jumps from $20,000 to $100,000.
- New York issues no temporary paper tags — plan around plate transfers and the In-Transit Permit / Dealer Plate Issuance Program instead.
- Every retail sale must be documented on a numbered DMV MV-50 (Retail Certificate of Sale); dealers buy these in books and must account for them.
- Registration is a facility-based approval requiring an in-person inspector visit, so the physical-premises rules (sign, barrier, secure storage) are enforced, not just paperwork.
Official New York resources
- NY DMV — Open a Dealership ↗
- NY DMV — Dealers and Transporters ↗
- NY DMV — Dealer Bond form VS-3 (VTL §415(6-b)) ↗
New York dealer license FAQ
How much does a dealer license cost in New York?+
Facility application fee: $37.50; Dealer registration fee: $450; MV-50 book (Retail Certificates of Sale): $260; Additional dealer plates: $125 per box of 25; In-transit permit (temporary registration): $12.50; Surety bond premium: ~$225–$1,000+ per year. Plus the $20,000 or $100,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in New York?+
New York requires a $20,000 or $100,000 surety bond. Under VTL §415(6-b), a retail or wholesale dealer that sold 50 or fewer vehicles in the previous calendar year posts a $20,000 bond; more than 50 vehicles requires a $100,000 bond. Franchised new-car dealers post $50,000. Dealers in only trailers, motorcycles, vehicles over 10,000 lbs, ATVs, boats or snowmobiles are exempt. File on DMV form VS-3; the surety must give the Commissioner 60 days' written notice before cancellation.
Do you need a physical lot to get a dealer license in New York?+
A permanent, established place of business that meets the DMV facility standards on form VS-142: a permanently mounted sign visible from the street, a display area/lot, a clear and permanent physical barrier separating you from any other business, a dedicated business mailbox and phone, and an office with heat, electricity, a desk and chairs. Plates and certificates of sale must be kept in secure, locked storage. A Vehicle Safety inspector conducts an on-site facility investigation before final approval.
How many cars can you sell in New York without a dealer license?+
New York VTL §415 generally treats a person who sells, or offers for sale, five or more vehicles in a calendar year as a dealer required to register — verify the current threshold with the DMV for your situation.
How long is a New York dealer license valid?+
Two-year facility registration term; renew through the DMV Office of Vehicle Safety before expiration and keep the surety bond continuously in force.
Is dealer training or an exam required in New York?+
None. New York does not require a pre-licensing course or dealer exam to register a used-vehicle dealer facility.
How do temporary tags work for New York dealers?+
New York does not use paper temporary tags. A dealer transfers the buyer's existing plates, or — under the Dealer Plate Issuance Program — assigns a permanent registration plate or issues a 30-day In-Transit Permit ($12.50) to a buyer who has no plate to transfer. Program eligibility requires being registered at least one year with 25+ retail sales annually and good standing.
Data verified 2026-07-17. Requirements change — confirm with the New York State Department of Motor Vehicles (NYS DMV), Office of Vehicle Safety and Clean Air before filing.
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