If you sell or buy cars professionally within New Mexico, then you are required by the New Mexico Motor Vehicle Division (MVD) to register as a licensed motor vehicle dealer. You must purchase and maintain a $50,000 auto dealer bond as part of that licensing process. Our $50,000 New Mexico auto dealer bond starts at $350. Get started with our application below.
Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.
Bond Amount: $50,000
Required By: The New Mexico Motor Vehicle Division (MVD)
A New Mexico auto dealer bond is a three-party agreement that involves the surety company (the surety), the auto dealer (the principal of the bond), and the New Mexico Motor Vehicle Division (the obligee). In this contract, the surety company guarantees that the auto dealer will adhere to the requirements specified in New Mexico Statutes 66-4-7, as mandated by the New Mexico Motor Vehicle Division. Should the dealer fail to meet these terms—such as not remitting sales taxes to the government or committing title fraud or errors—a claim can be filed against the bond. This claim serves to provide financial compensation to the affected parties.
The surety company conducts a thurough investigation to determine the validity of the claim. If it's deemed valid, the surety company will pay out an amount up to the maximum bond coverage. Importantly, the principal of the bond (the dealer) is responsible for reimbursing the surety for all the money disbursed for their claim.
Who Needs a New Mexico Auto Dealer Bond
According to New Mexico Statute 66-4-7, any individual involved in the sale of motor vehicles, trailers, or recreational vehicles as a dealer, wholesaler, or distributor must obtain the relevant auto dealer license from the New Mexico Motor Vehicle Division. To secure this license, you are required to possess a New Mexico motor vehicle surety bond. The most common bond in this category is the $50,000 motor vehicle dealer bond, starting at a yearly cost of $350.
How Fast Can I Obtain the New Mexico Motor Vehicle Dealer Surety Bond?
You can obtain your surety bond within as little as 4 hours from the moment you complete the application and make the necessary payment upon receiving the payment link.
The process is straightforward. Begin by filling out the application form, providing the following information:
Once you've supplied this information, we will leverage it to seek out the most affordable quotes from our extensive network of more than 10 insurance partners. If you are satisfied with the quote, we will send you a payment link. Once the payment is made, we will promptly email you the bond.
You have the flexibility to choose the term length for your Auto Dealer Bond. However, all New Mexico Auto Dealer bonds share a common expiration date, which is March 31st. This specific date aligns with the expiration of all New Mexico Auto Dealer licenses. Therefore, a new bond or proof of continuous bond coverage must be submitted to the New Mexico Motor Vehicle Division before March 31st each year. This ensures that your dealership remains compliant and licensed to operate in the state.