Who requires it
New Mexico Motor Vehicle Division — Dealer section
License & permit · New Mexico
New Mexico Motor Vehicle Dealer Bond
New Mexico Motor Vehicle Division dealer, wholesaler, distributor, auto recycler, and title-service licenses require a fifty-thousand-dollar surety bond before issuance. Motorcycle-only dealers file twelve thousand five hundred dollars instead. NMSA 1978 § 66-4-7 conditions the bond on protecting purchasers against title failures, fraudulent misrepresentations, and warranty breaches as to liens. Form MVD-10175 is the ordinary filing form, and the bond must track the dealer license year that ends each March 31.
Common bond amount
$12,500 / $50,000
Motorcycle-only $12,500; dealers, wholesalers, distributors, recyclers, and title-service companies $50,000 (NMSA 1978 § 66-4-7).
How you file
File MVD Form 10175; cash or New Mexico government bonds may substitute
Renewal
Continuous with dealer license; annual proof before March 31 renewal
Who requires it
Applicants for and holders of New Mexico dealer, wholesaler, distributor, auto recycler, or title-service company licenses under article 4, chapter 66, plus motorcycle-only dealer licensees who use the lower statutory face.
How much is required
Section 66-4-7 sets fifty thousand dollars for the ordinary dealer, wholesaler, distributor, auto recycler, and title-service path, and twelve thousand five hundred dollars for a dealer’s license limited to motorcycles. Cash or bonds of New Mexico or a political subdivision may substitute.
How to get and file it
Have a surety authorized in New Mexico execute Form MVD-10175 (or the current MVD dealer bond) in the exact business and trade name on your dealer application, in the $50,000 or $12,500 face that matches your license class. File the original with the MVD dealer section and keep proof current for each March 31 renewal. Maintain continuous coverage for the license period. Supply proof annually before renewal. If the surety requests release under 18.19.4 NMAC, file a replacement original bond within the ninety-day window so the license does not lose its required security.
Cost note
Twelve thousand five hundred or fifty thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Ordinary dealer / wholesaler / distributor / recycler / title service
- $50,000
- Motorcycle-only dealer
- $12,500
- Name match
- Bond must use the same business and trade name as the license application
- Alternatives
- Cash or New Mexico / political-subdivision bonds in the equivalent amount
Official sources
Related resources
Frequently asked questions
Do New Mexico auto recyclers use the same bond as dealers?
Yes. Section 66-4-7 requires the $50,000 bond for auto recycler licenses as well as dealer, wholesaler, distributor, and title-service licenses. Motorcycle-only dealers alone use the $12,500 amount.
When does my New Mexico dealer bond renew?
MVD materials require the bond to run concurrently with the dealer license, which expires March 31 each year, and to supply proof of bond annually before renewal.
Related New Mexico bond guides
Contractors Bond
$10,000
New Mexico Construction Industries Division contractor licenses require a ten-thousand-dollar surety bond as proof of responsibility. NMSA 1978 § 60-13-49 and 14.6.3 NMAC apply that single amount on initial licensure and renewal. Contractor classifications—general building, general engineering, electrical, mechanical, and others—authorize different scopes of work, but they do not create different statewide bond amounts. Bond proceeds cure division-certified code violations the licensee caused and failed to correct.
Mortgage Lender Bond
$50,000 / $100,000 / $150,000
New Mexico mortgage loan companies must post and maintain a surety bond with the Financial Institutions Division under NMSA 1978 § 58-21-7. New licenses start at fifty thousand dollars. On renewal, the amount steps to fifty thousand, one hundred thousand, or one hundred fifty thousand dollars based on annual New Mexico mortgage origination volume. Mortgage loan originators follow the same volume schedule under § 58-21B-17, but employees or exclusive agents of a licensed company may use the company’s bond instead of posting separately.
Money Transmitter Bond
$300,000–$2,000,000
New Mexico money transmission licensees under the Uniform Money Services Act must maintain a surety bond, letter of credit, or similar security acceptable to the director. NMSA 1978 § 58-32-203 sizes the device at the greater of three hundred thousand dollars or one percent of the licensee’s yearly New Mexico money-transmission volume—or the applicant’s projected first-year volume—capped at two million dollars. The security runs to New Mexico for claimants against the licensee’s money-transmission obligations.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a New Mexico application
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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