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All state guides New Mexico dealer license

How to get a used car dealer license in New Mexico

You apply online through MyMVD to the Motor Vehicle Division's Dealer Licensing Bureau for a retail dealer license. Used dealers need 8 hours of pre-licensing education, a $50,000 bond and an approved location with a lease of at least six months.

  • Sourced to MVD
  • Checked October 2026
  • Free
License
Motor vehicle dealer license (retail dealer, used vehicles)
Surety bond
$50,000
State fee
$50
Pre-license course
8 hours
Background check
Felony screen, vehicle-related
License term
1 year (annual license)
What the state asks for

New Mexico dealer license requirements

The figures a first-time used car dealer needs before applying to MVD. Each row shows how well it is supported.

Surety bond
$50,000Official source

An original corporate surety bond, continuous in form, issued in the same business name and trade name shown on your application. It must stay in effect for the whole license period.

State license fee
$50Official source

A nonrefundable $50 license fee paid online when you submit the application. Paying by credit card adds a $1.25 processing fee. Paying by e-check does not.

Pre-license education
8 hoursOfficial source

A first-time used (nonfranchise) dealer applicant must complete 8 hours of department-approved education. MVD points applicants to the New Mexico Independent Automobile Dealers Association for the certificate.

Background check
Felony screen, vehicle-relatedOfficial source

A felony conviction related to the use, sale or exchange of a motor vehicle disqualifies a sole proprietor, partner or corporate officer. MVD's application guide lists no fingerprint step. Confirm with MVD.

Insurance
Confirm with MVDConfirm with the agency

MVD's application guide and the licensing rule do not list an insurance certificate for the license itself. MVD's procedures manual does ask for insurance, such as garage liability, when dealer plates are registered.

Business location
Enclosed office, 6-month leaseOfficial source

An established place of business in an enclosed building on a permanent foundation, used only for the dealership, with space to display at least one vehicle, customer parking and a sign. A leased site needs a term of at least six months.

License term and renewal
1 year (annual license)Official source

The license is annual. Your renewal application, fee and original bond must reach MVD on or before the day the current license expires. The 2019 dealer education law also requires 4 hours of continuing education each year.

Sales allowed without a license
4 per calendar yearOfficial source

Casual sales of your own vehicles are exempt up to four in a calendar year, and each vehicle must be titled in your name. Selling more than four in a year requires a dealer license.

Processing time
Not publishedConfirm with the agency

MVD does not publish a processing time. It says incomplete applications are delayed and that it may ask for more pictures, diagrams or a site inspection during review.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

New Mexico Taxation and Revenue Department, Motor Vehicle Division, Dealer Licensing Bureau

License you apply for

Motor vehicle dealer license (retail dealer, used vehicles)

Official licensing page

Continuing education: yearly, not every two years

MVD's posted application guide dates from 2017 and says dealer education is required every two years. A 2019 law (Senate Bill 248, signed as Chapter 216) changed the statute to 8 hours before a first used dealer license and 4 hours of continuing education every year. Follow the statute, and ask MVD or the New Mexico Independent Automobile Dealers Association which courses are approved.
Step by step

How to get a New Mexico dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Set up the business and its ID numbers

    Form the entity and gather the numbers MVD asks for: your New Mexico tax ID, federal tax ID and Secretary of State number, plus ownership documents such as articles of organization or incorporation. You will list every owner until ownership totals 100 percent. MVD may refuse a license if you are a delinquent taxpayer or have unfiled state returns.

    18.19.4.31 NMAC

  2. Complete the 8-hour pre-licensing education

    A first-time used dealer applicant needs 8 hours of education approved by the department. MVD's guide tells pre-owned dealer applicants to contact the New Mexico Independent Automobile Dealers Association for the pre-licensing certificate. Franchised new car dealers upload a franchise agreement instead.

    NMSA 66-4-2 · 8 hours

  3. Secure a location that qualifies

    You need an enclosed building on a permanent foundation, used only for the dealership, with space to display at least one vehicle, customer parking and room for records. A lease must run at least six months and cannot let either side cancel at will. A mall common area or shared parking lot does not qualify unless it is physically closed off for your use.

    18.19.4.50 to 18.19.4.57 NMAC

  4. Get zoning sign-off and a local business license

    MVD asks for a zoning document and a business license for the location, and the rule requires a city or county representative to certify that the site meets local zoning. Put up a sign showing the same business or trade name that will appear on your license and bond.

    18.19.4.11 NMAC

  5. Buy the $50,000 dealer bond

    Get a $50,000 corporate surety bond that is continuous in form. It must be written in the same business name and trade name you put on the application. You upload the bond document with the online application.

    NMSA 66-4-7 · $50,000

  6. Photograph and diagram the site

    Prepare pictures or diagrams of the business site, the sign, the inside office space, office equipment and the vehicle display area, plus a diagram of the property layout that shows where the sign is. MVD may ask for more pictures or an on-site inspection while it reviews the file.

    Uploaded in MyMVD

  7. Apply online through MyMVD

    On the MyMVD online services page choose Register a New Partner, select the dealer application and the Retail Dealer license type, then complete it in one sitting with every document attached. Pay the nonrefundable $50 fee by e-check or credit card. Submitting does not guarantee a license.

    MyMVD · $50

  8. Clear location approval and receive the license

    MVD must approve the business location before it issues the license. It can do that with a physical inspection or by reviewing your plans, drawings or photographs, and the choice is MVD's. Answer any follow-up requests, then use your MyMVD account to print the license and handle renewals and changes.

    18.19.4.10 NMAC

Practical advice

Read the lease before you sign. A term under six months, or a clause that lets either side cancel at will, fails the rule. Make sure the name on the bond, the sign and the application match exactly. The online application has to be finished in one sitting, so collect your photos, diagrams, zoning document, bond and education certificate first. If you plan to share a site, get MVD's approval of the layout early.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

New Mexico dealer location requirements

What the state checks at the business address.

  • An enclosed building on a permanent foundation that meets local zoning, used only for the dealership and business incidental to it.
  • If you lease, a term of at least six months. A clause letting either side cancel at its sole discretion counts as less than six months.
  • Enough space to safely display at least one vehicle of the type you sell, plus customer parking that meets local zoning.
  • Room for customers, office furniture and equipment, and space to keep the dealership's books and records on site.
  • A sign that clearly identifies the dealer or trade name exactly as it appears on the license and the surety bond.
  • A city or county representative must certify that the location complies with local zoning.
  • Only one dealer license per location. A shared site needs a physical barrier and MVD approval of the subdivision.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a New Mexico dealer license

Renewal and ongoing duties

Renew every year before the license expires, with the fee and bond, and complete the yearly continuing education for used dealers. If the bond lapses and you do not replace it within five business days of MVD's demand, the license is deemed invalid. Display the license at the lot, keep records there, and get a supplemental license before you move or add a location.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

New Mexico dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in New Mexico?

Complete 8 hours of approved pre-licensing education, set up an established place of business with a lease of at least six months, get local zoning sign-off and a $50,000 surety bond, then apply online through MyMVD and pay the $50 fee. The Motor Vehicle Division's Dealer Licensing Bureau must approve your location, by inspection or by reviewing photos and plans, before it issues the license.

How much is the dealer bond in New Mexico?

$50,000. It must be an original corporate surety bond, continuous in form, written in the same business name and trade name as your license application. If the bond lapses and you do not replace it within five business days after MVD demands a new one, the license is treated as invalid.

How much does a New Mexico dealer license cost?

The state license fee is $50 and it is not refundable. Paying by credit card adds a $1.25 processing fee, and paying by e-check does not. Your bond premium, pre-licensing class, local business license and lease are separate costs.

Do I need a pre-licensing course in New Mexico?

Yes, if you are applying for a used (nonfranchise) dealer license for the first time. State law requires 8 hours of education approved by the department, and renewal requires 4 hours of continuing education every year. MVD directs pre-owned dealer applicants to the New Mexico Independent Automobile Dealers Association for the certificate. Recreational vehicle dealers are excepted.

Can I get a New Mexico dealer license without a car lot?

No. You need an established place of business in an enclosed building on a permanent foundation, used only for the dealership, with space to display at least one vehicle, customer parking and a sign. MVD's guide notes that even a wholesale license still requires a physical location. A mailing address or a shared parking lot does not qualify.

How many cars can I sell in New Mexico without a dealer license?

Up to four of your own vehicles in a calendar year, and each one must be titled in your name. MVD treats a person or company that sells more than four vehicles in a year as needing a dealer license from the Dealer Licensing Bureau.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with MVD or your attorney before you sign a lease or pay a fee.

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