{"id":2301,"date":"2017-02-26T00:12:23","date_gmt":"2017-02-26T00:12:23","guid":{"rendered":"http:\/\/suretyone.com\/blog\/?p=2301"},"modified":"2017-02-26T00:12:23","modified_gmt":"2017-02-26T00:12:23","slug":"new-york-auto-dealer-surety-bond","status":"publish","type":"post","link":"https:\/\/suretyone.com\/blog\/new-york-auto-dealer-surety-bond\/","title":{"rendered":"New York Auto Dealer Surety Bond"},"content":{"rendered":"

Effective March 28th, 2017, enhanced New York auto dealer surety bond<\/strong> requirements will take effect. The New York Vehicle and Traffic Law has been modified to increase the surety bond sales-to-bond thresholds. Retail or wholesale motor vehicle dealers that sold fifty or fewer vehicles in the previous calendar year must provide a $20,000 surety bond.\u00a0Retail or wholesale motor vehicle dealers that sold more than fifty vehicles in the previous calendar year must provide a $100,000 surety bond. The surety bond has not changed significantly, however due to the large bond penalty in the case of dealers over the fifty vehicle sales level, new underwriting requirements will apply. Auto dealers that are in the business of only converting motor vehicles in to tow trucks, buses, school buses, garbage trucks, RVs and trailers are exempt from posting the surety bond.<\/p>\n

A New York auto dealer surety bond guarantees the performance of specific duties. The auto dealer must\u00a0pay all valid bank\u00a0drafts drawn for the purchase of motor\u00a0vehicles, transfer of good title to each motor vehicle sold,\u00a0hold in trust\u00a0all customer deposits related to the sale of a\u00a0motor vehicle between the time of receipt of such customer deposit and\u00a0the transfer of good title to the vehicle to the customer, pay any\/all fines imposed on the motor vehicle dealer\u00a0by the Commissioner<\/a> pursuant to the provisions of licensing statute.<\/p>\n

The Commissioner of the Department of Motor Vehicles provides helpful instructions about the surety bond on the state website, as follows:<\/p>\n

“DMV does not provide Surety Bonds; you must contact a surety insurance company and have them fill out the\u00a0Dealer Bond Under NYS Vehicle and Traffic Law Section 415 (6-B)<\/a>\u00a0(VS-3).\u00a0 Be sure that the business name and mailing address on your bond exactly matches those that show on your application.\u00a0The amount of the bond depends on the number of vehicles you anticipate selling (used motor vehicle dealers):<\/p>\n

Vehicles Sold in Previous Calendar Year and Corresponding New York Auto Dealer Surety Bond Amounts<\/strong><\/p>\n