Who requires it
New York State Department of Motor Vehicles — Vehicle Safety
License & permit · New York
New York Motor Vehicle Dealer Bond
New York motor vehicle dealers that sell passenger cars and light trucks must file a sealed Form VS-3 surety bond with the Department of Motor Vehicles before a dealer registration issues. Vehicle and Traffic Law § 415(6-b) and DMV’s facility instructions set twenty-thousand-dollar, fifty-thousand-dollar, and one-hundred-thousand-dollar faces based on prior-year sales volume and whether the dealer is a franchised new retailer.
Common bond amount
$20,000–$100,000
$20,000 or $100,000 for non-new dealers by prior-year sales; $50,000 for franchised new passenger/light-truck dealers.
How you file
File DMV Form VS-3 with the dealer application
Renewal
Maintain while registered; 60-day surety cancellation notice to DMV
Who requires it
Retail and wholesale motor vehicle dealers registering with DMV under VTL § 415, except dealers who exclusively sell motorcycles, trailers, snowmobiles, ATVs, boats, vehicles over 10,000 pounds, or other specialty classes DMV lists as bond-exempt. Franchised new passenger and light-truck dealers use the separate fifty-thousand-dollar face. Transporters registered only as transporters are outside this dealer bond.
How much is required
DMV’s published schedule (VS-142 and the Open a Dealership page) sizes the VS-3 face as follows: $20,000 for retail or wholesale dealers other than franchised new dealers that sold fifty or fewer vehicles in the previous calendar year; $100,000 when those non-new dealers sold more than fifty vehicles; and $50,000 for franchised new retail dealers of passenger cars, SUVs, and light trucks. New applicants should confirm with Vehicle Safety which tier applies to anticipated sales before ordering the bond.
How to get and file it
Have an authorized surety complete DMV Form VS-3 in the exact business name and mailing address shown on the VS-1 facility application, attach the power of attorney, and include a sealed original (or DMV-accepted copy) with the Albany Bureau of Consumer and Facility Services packet. Keep the bond continuously in force while registered. Form VS-3 requires sixty days’ written cancellation notice to the Commissioner of Motor Vehicles, plus notice when cancellation becomes effective. Replace the bond before any name or address change that would make the filed form inaccurate.
Cost note
Twenty thousand, fifty thousand, or one hundred thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Lower-volume non-new dealers
- $20,000 when prior-calendar-year sales were 50 or fewer
- Higher-volume non-new dealers
- $100,000 when prior-calendar-year sales exceeded 50
- Franchised new dealers
- $50,000 for franchised passenger cars, SUVs, and light trucks
- Form match
- Sealed VS-3 with power of attorney; name and address must match VS-1
Official sources
Related resources
Frequently asked questions
Do motorcycle-only or trailer-only dealers need the VS-3 bond?
DMV’s Open a Dealership guidance and Form VS-3 carve out dealers that exclusively sell listed specialty classes such as motorcycles, trailers, snowmobiles, ATVs, boats, and vehicles over 10,000 pounds. Confirm your product mix with Vehicle Safety before assuming an exemption.
Is the bond amount the same as garage liability insurance?
No. The VS-3 surety is a license condition that answers to DMV and aggrieved parties under VTL § 415(6-b). Liability insurance is a separate coverage requirement for the dealership facility and operations.
Related New York bond guides
Mortgage Broker Bond
$10,000–$100,000
Registered New York mortgage brokers must keep a surety bond on file with the Department of Financial Services while the registration is active. Section 410.14 of Title 3 of the NYCRR sizes the amount from ten thousand to one hundred thousand dollars using the number of New York applications reported on the annual Volume of Operations Report.
Money Transmitter Bond
$500,000+
New York money-transmitter licensees must file surety bonds with the superintendent under Banking Law Article 13-B. Part 406.13 sets a minimum five-hundred-thousand-dollar bond protecting purchasers and holders of New York instruments, and a separate minimum seven-hundred-fifty-thousand-dollar bond when the licensee also sells New York traveler’s checks.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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