New Mexico Motor Vehicle Dealer Surety Bond
A New Mexico motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale of motor vehicles, manufactured homes, or trailers within the State of New Mexico. The New Mexico Taxation and Revenue Department, Motor Vehicle Division (MVD) requires all dealer and auto recycler license applicants to post a surety bond. The standard bond for vehicle dealers and auto recyclers is $50,000, with a $12,500 bond for motorcycle-only dealers. Like New Hampshire, New Mexico uses a March 31st annual expiration date. Surety One, Inc. offers quick, no-hassle underwriting for all New Mexico motor vehicle dealer bonds.
Bond Amount & Requirements
New Mexico Statutes Annotated NMSA 1978, Section 66-4-7 requires all dealer and auto recycler license applicants to file a corporate surety bond with the Motor Vehicle Division. The bond must be issued in the same business name and trade name shown on the application. Bond form MVD-10175 is the official state form.
| Bond Amount | License Type | Description |
|---|---|---|
| $50,000 | New Motor Vehicle Dealer | Franchise dealer selling new and used vehicles |
| $50,000 | Used Motor Vehicle Dealer | Sells used motor vehicles to the public |
| $50,000 | Wholesale Dealer | Sells motor vehicles to other licensed dealers |
| $50,000 | Auto Recycler / Dismantler | Recycles, dismantles, or wrecks motor vehicles |
| $50,000 | Manufacturer | Manufactures motor vehicles or trailers |
| $50,000 | Trailer / RV / ATV / Boat / Snowmobile Dealer | Various specialty vehicle dealers |
| $12,500 | Motorcycle Dealer | Sells motorcycles exclusively |
Important — 5-Day Lapse Window & 90-Day Surety Discharge: New Mexico has one of the strictest bond enforcement provisions nationally. If a bond lapses or becomes invalid, the MVD may demand a new bond by certified mail or in person. If the dealer does not comply within 5 business days, the license is deemed invalid and the MVD may seek to enjoin the dealer from operating. Additionally, a surety requesting release from a bond is not discharged until 90 days after filing the written request — the longest surety discharge period in our project. New Mexico does not require dealers to maintain liability insurance (unlike most states).
Who Needs This Bond?
New Mexico defines a motor vehicle dealer as any person who sells or solicits or advertises the sale of new or used motor vehicles, manufactured homes, or trailers subject to registration. The bond applies to:
- New (franchise) motor vehicle dealers — $50,000
- Used motor vehicle dealers — $50,000
- Wholesale dealers — $50,000
- Auto recyclers / dismantlers — $50,000
- Manufacturers — $50,000
- Trailer, RV, ATV, boat, snowmobile, and jet ski dealers — $50,000
- Motorcycle dealers — $12,500
How Much Does the Bond Cost?
The cost is a small percentage of the required bond amount, determined by credit, financials, and experience. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
New Mexico Dealer License Requirements
- Completed dealer license application with applicable fees
- Corporate surety bond (Form MVD-10175) — uploaded via the New Mexico Dealer Portal
- Established business location with enclosed building on a permanent foundation meeting zoning requirements
- Business signage displaying any DBA or trade name
- MVD on-site inspection of the business location (at MVD’s discretion)
- Supplemental license required for any additional place of business (application submitted at least 14 days before selling at that location, with a rider to existing bond or new bond)
Note: New Mexico does not require dealers to maintain liability insurance, which is unusual among the states.
Filing, Renewal & Cancellation
The bond is continuous in form and runs concurrently with the dealer license, which expires March 31st of each year regardless of the date of issuance. Proof of bond must be supplied to the MVD annually prior to renewal. Dealers may renew through the online New Mexico Dealer Portal.
The surety may terminate future liability by filing written notice with the Director of the MVD. The surety is discharged from liability occurring after 90 days from the date of filing the termination request. Accrued liability before termination is not discharged unless a new bond is filed during the 90-day period. If the bond lapses, the dealer has only 5 business days to provide a new bond before the license is deemed invalid.
Bond Claims
The bond covers losses resulting from the dealer’s failure to comply with the provisions of NMSA 66-4-7 and related statutes governing the sale of motor vehicles, manufactured homes, and trailers in New Mexico.
New Mexico Taxation and Revenue Department
Motor Vehicle Division (MVD)
P.O. Box 1028
Santa Fe, NM 87504-1028
Phone: 1-888-683-4636
Web: mvd.newmexico.gov
Surety One, Inc. is the New Mexico surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for New Mexico motor vehicle dealer bonds, motorcycle dealer bonds, and all other license bond classes. Call us at (800) 373-2804, email Underwriting@SuretyOne.com, or chat with a live underwriter for immediate assistance.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
What We Need From You
Obligee's Bond Form
