New Hampshire Auto Dealer Bond— $25,000 — Stable for Decades

New Hampshire's $25,000 bond amount has remained stable for decades under RSA 261:104 -- even as neighboring states have increased theirs. Connecticut raised its bond to $60,000, Maine went to a $25K-$100K sliding scale, and Massachusetts kept $25,000 but added stricter requirements. NH's stability reflects the state's generally lighter regulatory approach, making it one of the more affordable New England states for new dealers to enter the market.

New Hampshire auto dealer bonds ($25,000) typically cost $250-$2,500 per year based on credit. Excellent credit (750+) pays $250-$500 (1-2%). Good credit (680-749) costs $500-$1,000 (2-4%). Fair credit (620-679) ranges $1,000-$1,750 (4-7%). Lower credit scores may require up to $2,500 (10%). NH's $25,000 bond amount is lower than many neighboring states, keeping premiums affordable.

Form TDMV 19A is the official New Hampshire dealer surety bond form. This document must accompany your dealer license application (Form TDMV 19) and certifies that a $25,000 surety bond is in place. The bond obligee is the NH Department of Safety, Division of Motor Vehicles. We file this form on your behalf with same-day processing.

New Hampshire issues several dealer license types under RSA 261:104: Class I (new vehicle franchised dealers), Class II (used vehicle dealers), Class III (vehicle auction operators), Class IV (motorcycle dealers), Class V (utility/boat trailer dealers), and Class VI (wholesale dealers). All classes require the same $25,000 surety bond. Each class has specific requirements for lot size, display capacity, and business operations.

Yes. New Hampshire is one of only five states with no general sales tax, which means dealers do not collect or remit sales tax on vehicle transactions. This can be a significant selling point for buyers. However, purchasers registering vehicles in other states (Massachusetts, Maine, Vermont) will owe that state's sales tax. NH also has no state income tax on wages, further reducing dealer operating costs.

The full NH dealer licensing process typically takes 4-8 weeks. The surety bond is usually issued within 1 business day. After submitting your completed application (TDMV 19) with bond (TDMV 19A), insurance, zoning approval, and fee, the DMV Dealer & Inspection Section schedules a facility inspection. Processing can take 3-6 weeks depending on inspection scheduling.

Yes. We have specialized surety programs for all credit situations. NH's relatively low $25,000 bond amount means even applicants with credit scores in the 500s can often secure a bond. Rates for lower credit typically range from 5-10% ($1,250-$2,500 annually). We work with multiple Treasury-certified carriers to find the most competitive option.

NH requires a permanent structure (not a tent or trailer) with office space for record-keeping, a customer waiting area, and an exterior business sign visible from the road. Your lot must display vehicles for sale. Class I dealers need service facilities; Class II dealers need a minimum display area. The DMV conducts an on-site inspection before issuing your license. You also need municipal zoning approval.