New Mexico Auto Dealer Bond

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.

Auto Dealer Bond

Bond Amount: $50,000

Required By: The New Mexico Motor Vehicle Division (MVD)

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Refund within 30 days
1 Year Bond Starts At
*Based on credit and experience

How Much Does a New Mexico Auto Dealer Bond Cost?

Several factors influence the cost of a New Mexico dealer bond, including your credit score, your experience in the dealership industry, and the insurance company providing the bond. Among these factors, your credit score typically has the most significant impact. The cost of the bond usually falls within the range of 0.6% to 10% of the bond amount required. The better your credit score and credit history, the more affordable the bond becomes. To illustrate, our one-year, $50,000 New Mexico motor vehicle dealer bond starts at $350.

It's worth noting that if you opt for longer-term bonds, multi-year discounts are often available. Generally, you can expect a discount of at least 15% per year for a multi-year bond. 

We have established partnerships with over 10 insurance companies, enabling us to offer our clients highly competitive rates. If you happen to find a better deal elsewhere, please don't hesitate to inform us, and we'll strive to beat it.

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Commonly Asked Questions: 

What is a New Mexico Auto Dealer Bond?

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.

How Do I Obtain the New Mexico Motor Vehicle Dealer Surety Bond?

The process is straightforward. Begin by filling out the application form, providing the following information:

  • Dealer name and any applicable Doing Business As (DBA)
  • Dealer address
  • Dealer owner's legal name and Dealer SSN (a soft credit check is required)

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.

How Often Do I Need to Renew My Motor Vehicle Dealer 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.