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How to get a used car dealer license in New York

You file DMV's Original Facility Application (VS-1D) to register as a retail motor vehicle dealer, with a $20,000 surety bond as a first-time applicant. A DMV inspector then visits the site, which needs display space for three vehicles and a permanent dealer sign.

  • Sourced to NY DMV
  • Checked October 2026
  • Free
License
Dealer registration: Retail Motor Vehicle Dealer, Other (used cars)
Surety bond
$20,000 to start
State fee
$487.50
Pre-license course
None required
Background check
Conviction disclosure, photo ID
License term
2 years
What the state asks for

New York dealer license requirements

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

Surety bond
$20,000 to startOfficial source

$20,000 for a first-time applicant or a used dealer that sold 50 or fewer vehicles in the previous calendar year. $100,000 once you sold more than 50. The surety completes form VS-3 and attaches its power of attorney.

State license fee
$487.50Official source

The dealer application lists $487.50 in application and business fees. That matches the statute's $37.50 nonrefundable application fee plus two years of the $225 annual registration fee. Dealer plates are extra.

Pre-license education
None requiredOfficial source

DMV's 15-item requirement list for dealers (VS-142) includes no course or exam. DMV asks you to read the dealer regulations (CR-78) and the facility requirements before you apply.

Background check
Conviction disclosure, photo IDOfficial source

The application asks whether anyone named on it, or their immediate family, has ever been convicted of a misdemeanor or felony. You send a photo ID copy for every owner, officer or member. No fingerprint step is listed.

Insurance
Workers' comp, plate insurance IDOfficial source

Proof of workers' compensation and disability coverage if you have employees. Before DMV issues dealer plates you must also present an insurance ID card for vehicles driven on those plates. The forms state no liability limit.

Business location
3-car display, 3 ft x 2 ft signOfficial source

Retail dealers need space to display at least three vehicles at all times, a permanently mounted sign, heat, electricity, a phone, a desk, a locking cabinet or safe, and their own mail receptacle. A lease must run at least six months.

License term and renewal
2 yearsOfficial source

Dealer registrations are renewed for two-year periods on the Facility Renewal Application (VS-2). The annual registration fee is $225. Dealer plates expire on the same day as the registration.

Sales allowed without a license
5 per calendar yearOfficial source

Selling or offering more than five vehicles in a calendar year makes you a dealer. So does displaying three or more for sale at one time, or within one calendar month, on premises you control, if you acquired them to resell.

Processing time
Not publishedConfirm with the agency

DMV does not publish a processing time. Albany checks the application for completeness, sends it to a regional office, and that office contacts you to schedule the on-site investigation.

“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 York State Department of Motor Vehicles, Vehicle Safety Services, Application Unit

License you apply for

Dealer registration: Retail Motor Vehicle Dealer, Other (used cars)

Official licensing page

DMV's web page and its current form do not fully match

The web page gives a P.O. Box 2700 mailing address. The application revised in February 2026 says to mail to 6 Empire State Plaza, Room 220, Albany. The page also ties the bond to the vehicles you expect to sell, while the statute and the form use last calendar year's sales and give first-time applicants the $20,000 tier. Follow the current form and confirm with the Application Unit at 518-474-0919.
Step by step

How to get a New York dealer license

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

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  1. Register the business and get sales tax authority

    File with the Department of State if you are a corporation or LLC, or file an assumed name certificate with the County Clerk. Register for sales tax and get your Certificate of Authority before you apply, since DMV tells you not to submit without it. You also need a federal employer identification number. A retail dealer may not use the word Wholesale in its name.

    DTF-17A Certificate of Authority

  2. Secure a location that can pass inspection

    Find a site zoned for a dealership with room to display three vehicles, an office with heat, electricity and a desk, and its own mailbox. A lease must run at least six months. DMV accepts a lease that is contingent on facility approval, or for a pending lease a notarized owner statement saying you may sell vehicles there once licensed.

    VS-142 (6/25)

  3. Get the surety bond on form VS-3

    A first-time applicant posts a $20,000 bond. Have the surety complete form VS-3 with its seal and power of attorney. The business name and address on the bond must match your application exactly. Copies of the sealed, signed bond are accepted.

    VS-3 · $20,000

  4. Mount the sign and buy the starter kit

    Put up a permanent dealer sign of at least 3 feet by 2 feet that can be seen from the street. Buy bills of sale, odometer statements and warranty forms from a supply vendor, and have a locking cabinet or safe for security items. The book of registry requirement is met when you enroll in VERIFI.

    CR-78 section 78.26

  5. Complete the Original Facility Application

    Use DMV's application wizard to get the dealer form (VS-1D), choose Retail Motor Vehicle Dealer, Other, and sign it by hand. Attach the bond, proof of your right to the property, your tax ID or Certificate of Authority, a business filing receipt, photo ID copies for everyone listed, and workers' compensation and disability proof if you have employees.

    VS-1D (2/26)

  6. Mail it to the Application Unit with $487.50

    Pay by check or money order made out to the Commissioner of Motor Vehicles. Starter checks are not accepted. The current form gives the address as Vehicle Safety Services, Application Unit, 6 Empire State Plaza, Room 220, Albany, NY 12228-0001. Albany checks the file and forwards it to a regional office.

    $487.50 application and business fees

  7. Pass the on-site investigation

    The regional office contacts you to schedule a visit. The automotive facilities inspector checks the sign, display lot, mailbox, locking storage, starter kit, heat, electricity, desk and phone, and any barrier from neighboring businesses. The inspector will deny the application if your signs are not clearly visible.

    Automotive facilities inspector

  8. Receive the registration and set up VERIFI

    After approval DMV issues your certificate of registration, MV-50 retail certificates of sale and a dealer plate letter. Show an insurance ID card to get dealer plates. All motor vehicle dealers must enroll in and use VERIFI, the electronic book of registry, and sign its participation agreement.

    MV-50 · VERIFI

Practical advice

As a first-time applicant you post the $20,000 bond, so plan ahead for the jump to $100,000 after a calendar year with more than 50 sales. Make the lease contingent on facility approval, or use the notarized owner statement for a pending lease, so you are not locked in if the site fails. Have the sign mounted and the starter kit on the desk before the inspector comes.

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 York dealer location requirements

What the state checks at the business address.

  • Space to display at least three vehicles at all times. Wholesale dealers and transporters are exempt from this.
  • A permanently mounted sign at least 3 feet wide by 2 feet high, visible at all times from the nearest street or highway.
  • The official dealer sign has a red background and white lettering, and shows your facility number and the words State of New York.
  • Heat, electricity, a desk and a business phone at the place of business. A cell phone is acceptable.
  • A separate, exclusive mailing address verified by the Postal Service, with a mail receptacle only your business uses.
  • If other businesses share the location, a permanent physical barrier separating the display areas, signs and offices.
  • A lease or sublease of at least six months, or a notarized statement from the property owner if the lease is still pending.

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 York dealer license

Renewal and ongoing duties

Renew every two years on the Facility Renewal Application (VS-2). Keep the surety bond in effect, and raise it to $100,000 once you sold more than 50 vehicles in the previous calendar year. Record sales in VERIFI, keep the sign and three-vehicle display space in place, and keep your records open to DMV inspection.

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 York dealer license FAQ

The questions first-time dealers ask most.

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

Register the business, get a sales tax Certificate of Authority, secure a location with display space for three vehicles and a permanent dealer sign, and get a surety bond. Then mail the Original Facility Application (VS-1D) with $487.50 to DMV's Application Unit in Albany. A regional automotive facilities inspector visits the site, and if it passes DMV issues your dealer registration, MV-50 certificates of sale and a dealer plate letter.

How much is the dealer bond in New York?

$20,000 if you are applying for the first time or sold 50 or fewer vehicles in the previous calendar year, and $100,000 if you sold more than 50. Franchised new car dealers post $50,000. The bond is filed on form VS-3. Dealers that sell only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats or snowmobiles are exempt.

How much does a New York dealer license cost?

The dealer application lists $487.50 in application and business fees. Under the Vehicle and Traffic Law that is a $37.50 nonrefundable application fee plus a $225 annual registration fee for two years. Dealer plates, the bond premium, the sign and the starter kit of forms are separate costs.

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

No. DMV's requirement list for dealers does not include a course or an exam. DMV asks you to download and read the Regulations for Motor Vehicle Dealers and Transporters (CR-78) and the facility requirements (VS-142) before you apply.

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

Not as a retail dealer. Every retail dealer needs space to display at least three vehicles at all times, a permanent sign visible from the street, an office with heat, electricity, a desk and a phone, and its own mailbox. Wholesale dealers and transporters are exempt from the three-vehicle display rule, but a wholesale dealer cannot sell at retail.

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

Up to five in a calendar year. Anyone who sells or offers for sale more than five motor vehicles in a calendar year is regarded as a dealer. You are also treated as a dealer if you display three or more vehicles for sale at one time, or within one calendar month, on premises you own or control, when you acquired them for resale.

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 NY DMV or your attorney before you sign a lease or pay a fee.

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