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
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)
Step #3: Purchase a NY Motor Vehicle Dealer 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 per term. You will not pay this fee monthly.
The best way to see what you’d pay is to get a free quote:
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.