New Mexico Auto Dealer License and Surety Bond
Most New Mexico motor vehicle dealers, wholesalers, distributors, auto recyclers, and title service companies post a $50,000 surety bond before the Motor Vehicle Division issues a license. A dealer in motorcycles only posts $12,500 instead.
- Who requires it: New Mexico Motor Vehicle Division, part of the Taxation and Revenue Department; NMSA 66-4-7.
- Timing: We submit complete applications to the carrier promptly; most quotes within one business day.
Official New Mexico Requirements
"The bond shall be continuous in form and limited to the payment of fifty thousand dollars ($50,000) in total aggregate liability on a dealer's license, wholesaler's license, distributor's license, auto recycler's license or a title service company license and twelve thousand five hundred dollars ($12,500) on a dealer's license for motorcycles only."New Mexico Statutes Annotated 1978, Section 66-4-7 • View Official Requirements →
The bond amount and who it protects
The surety bond amount depends on your New Mexico license type.
| License type | Bond amount |
|---|---|
| Dealer, wholesaler, distributor, auto recycler, title service company | $50,000 |
| Dealer in motorcycles only | $12,500 |
The bond is payable to the state for the use and benefit of the purchaser and the purchaser's vendees. The surety company must be licensed by the New Mexico Public Regulation Commission or its successor to do business as a surety, and the form of the bond needs attorney general approval. Instead of a surety bond, a dealer, wholesaler, distributor, auto recycler, or motorcycles-only dealer may elect to file an equivalent amount of cash or bonds of the United States, New Mexico, or a political subdivision of the state.
What the bond covers if a claim is made
The bond answers for loss, damage, and expense sustained by a purchaser or their vendees from failure of the seller's title, fraudulent misrepresentation, or breach of warranty as to freedom from liens on the vehicle or motorcycle sold. It is continuous in form, with total aggregate liability limited to $50,000 on a dealer, wholesaler, distributor, auto recycler, or title service company license, and $12,500 on a dealer's license for motorcycles only. To file a claim against a dealer's bond, confirm the current process with the Motor Vehicle Division.
Getting your New Mexico auto dealer license
A dealer is anyone who sells, solicits, or advertises the sale of new or used motor vehicles, manufactured homes, or trailers subject to registration in New Mexico. Casual sales of your own vehicles are excluded. Dealers, wholesalers, distributors, and title service companies must be licensed before carrying on that business, including dealers in trailers, towable recreational vehicles, and motorcycles over 55 cubic centimeters.
For an initial nonfranchise dealership application, you complete eight hours of education accepted by the department to start, then four hours of continuing education each year to renew, under NMSA 66-4-2. Recreational vehicles are the exception to that education requirement. If you file the bond for a dealer, wholesaler, distributor, or motorcycles-only license, you do not need an additional bond to also wreck or dismantle motor vehicles or motorcycles.
Fees and what the bond costs
The license fee is $50 for each license year or portion of a year. What you pay is a share of the bond amount, set by the surety from your credit and finances.
Renewal and keeping your license active
Recreational vehicle dealers are licensed under NMSA 66-4-2.1, and that license renews for a 12-month period according to department rules; check the bond that applies to your license type with the Motor Vehicle Division. You cannot lease, loan, transfer, or sell your license to another person. A license may be suspended or canceled if the required bond or other security is not kept in effect. The secretary may also ask a district court to enjoin anyone operating without the required license or bond.
Your established place of business
No license is issued to a dealer or auto recycler without an established place of business as defined in the Motor Vehicle Code. The site must be devoted exclusively to the licensed business and related business and must have an enclosed building on a permanent foundation, and the license depends on that place being maintained. An additional place of business needs a supplemental license, and no fee is charged for it.
Steps
- Confirm your license type. Decide whether you are a dealer, wholesaler, distributor, auto recycler, title service company, or a dealer in motorcycles only, since that sets your bond amount.
- Set up a place of business. Secure an established place of business with an enclosed building on a permanent foundation, devoted exclusively to the licensed business.
- Complete your education. For an initial nonfranchise dealership, complete eight hours of education accepted by the department before you start.
- Post the bond or a deposit. File a $50,000 surety bond, or $12,500 for motorcycles only, or elect to file the equivalent amount of cash or government bonds instead.
- Apply and pay the fee. Submit your application to the department with the $50 fee for each license year.
- Renew and stay current. If the education rule applies to your license, complete four hours of continuing education each year, and keep your bond or other security in effect.
Frequently asked questions
How much is the New Mexico auto dealer bond?
It is $50,000 for dealers, wholesalers, distributors, auto recyclers, and title service companies, and $12,500 for a dealer in motorcycles only.
Do I need a New Mexico car dealer license to sell cars?
Yes, anyone who carries on the business of a dealer in motor vehicles subject to registration, including trailers, towable recreational vehicles and motorcycles over 55 cc, must be licensed. Casual sales of your own vehicles are excluded.
What does the bond cover?
It covers loss to a purchaser or their vendees from failure of the seller's title, fraudulent misrepresentation, or breach of warranty as to freedom from liens on the vehicle sold.
Can I file cash instead of a surety bond?
A dealer, wholesaler, distributor, auto recycler, or motorcycles-only dealer may elect to file an equivalent amount of cash or bonds of the United States, New Mexico, or a political subdivision instead.
How much is the New Mexico auto dealer license fee?
The fee is $50 for each license year or portion of a year.
How many hours of dealer education are required?
An initial nonfranchise dealership completes eight hours of education accepted by the department to start, then four hours of continuing education each year.
Does one bond also cover wrecking or dismantling?
If you file the bond for a dealer, wholesaler, distributor, or motorcycles-only license, you do not need an additional bond to wreck or dismantle motor vehicles or motorcycles.
What happens if I operate without the bond?
Your license may be suspended or canceled if the required bond or other security is not in effect, and the secretary may ask a district court to enjoin you from doing business.
How do I get a New Mexico auto dealer bond?
Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.
What happens after I apply?
We submit complete applications to the carrier promptly; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.
New Mexico dealers: vehicles without a title
Trade-ins and auction units sometimes arrive with a missing or defective title. Read how a bonded title works on the New Mexico bonded title page, or compare title bond rules across states.
Four situations dealers run into have their own guides: titling a salvage or rebuilt unit, buying out of state without a title, titling a trailer that arrives without paperwork and a wrong VIN on a title before resale.
Stocking more than cars? See titling a boat that arrives without paperwork, antique vehicle title options and abandoned vehicle titles.
Estimate Your New Mexico Auto Dealer Bond Premium
Free calculator — ballpark cost in under 60 seconds, no email required.
Other New Mexico Bonds
Additional surety bonds available in New Mexico
Nearby States
Auto dealer bonds in neighboring states
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
Request a quote
Other bonds in New Mexico
Auto dealer bonds in other states
- Alabama auto dealer bond
- Alaska auto dealer bond requirements
- Auto dealer bond rules in Arizona
- Arkansas auto dealer bond amount
- California auto dealer bond guide
- Colorado auto dealer bond
- Delaware auto dealer bond requirements
- Auto dealer bond rules in Florida
- Georgia auto dealer bond amount
- Hawaii auto dealer bond guide
- Idaho auto dealer bond
- Illinois auto dealer bond requirements
- Auto dealer bond rules in Indiana
- Iowa auto dealer bond amount
- Kansas auto dealer bond guide
- Kentucky auto dealer bond
- Maine auto dealer bond requirements
- Auto dealer bond rules in Maryland
- Massachusetts auto dealer bond amount
- Michigan auto dealer bond guide
- Minnesota auto dealer bond
- Mississippi auto dealer bond requirements
- Auto dealer bond rules in Missouri
- Montana auto dealer bond amount
- Nevada auto dealer bond guide
- New Hampshire auto dealer bond
- New Jersey auto dealer bond requirements
- New York auto dealer bond guide
- North Carolina auto dealer bond
- North Dakota auto dealer bond requirements
- Auto dealer bond rules in Ohio
- Oregon auto dealer bond amount
- Pennsylvania auto dealer bond guide
- Rhode Island auto dealer bond
- South Carolina auto dealer bond requirements
- Auto dealer bond rules in Tennessee
- Texas auto dealer bond amount
- Utah auto dealer bond guide
- Virginia auto dealer bond
- Washington auto dealer bond requirements
- Auto dealer bond rules in West Virginia
- Wisconsin auto dealer bond amount