How Top Open a New York State dealership
Important: Read about new rules regarding dealer record keeping.
NYS DMV Metal Signs
To register as a retail dealer licensed by the Department of Motor Vehicles in New York State
- consult the DMV Commissioner’s Regulations for Motor Vehicle Dealers and Transporters (pdf) (CR-78)
- download and read Facility Requirements – Dealers/Transporters (pdf) (VS-142)
You can also call the Office of Vehicle Safety and Clean Air at 1-518-474-4653 to get the forms, or call 1-518-474-0919 to get more information.
How to apply
You must submit
- Original Facility Application (pdf) (VS-1)
- a copy of your complete original sealed and signed Surety Bond: Dealer Bond Under NY State Vehicle and Traffic Law Section 415 (6-B) (pdf) (VS-3) with power of attorney papers made out to your business name and address
- proof that you have permission to use the property at the business location (notarized statement from property owner, lease (may be contingent on facility approval), sub-lease with primary lease, mortgage, deed or receipted tax bill)
- your Sales tax ID number and a copy of your Sales Tax Certificate of Authority (you may need a FEIN from the IRS before this step)
- proof of Workers Compensation Insurance for your employees (if you have no employees, indicate that on the application)
- a photocopy of driver license(s) or other government issued photo ID for everyone listed on the application
- a receipt for your purchase of the dealer’s starter kit and signs
- all required fees, via checks (app/license check & MV-50 check) payable to the Commissioner of Motor Vehicles
- a Filing Receipt found on the NY State Department of State website (Corporation or LLC) or a Business Certificate from the County Clerk (individual using assumed name or partnership)
Certificate of Authority
If you do not have your Certificate of Authority, do not submit an application with DMV yet!
The Certificate of Authority and Sales Tax ID number are issued by the New York State Department of Taxation and Finance (DTF). You may apply by visiting the NY State DTF website. Be sure to record your Sales Tax ID on the Original Facility Application.
Proof of Business Name
If you do not have your Proof of Business Name, do not submit an application with DMV yet!
Corporations and LLCs: You must submit a copy of your Filing Receipt from the Department of State. Instructions to file can be found on the NY State Department of State website.
Partnerships and Individuals Using an Assumed Name: You must submit a copy of your “Business Certificate of Assumed Name”. Contact your county clerk to obtain your business certificate.
Proof of Workers Compensation Insurance
If you do not have your proof of Workers Compensation Insurance, do not submit an application with DMV yet!
If you have any employees (family included) you must submit proof of Workers Compensation Insurance. You can visit the NY State Workers Compensation Board website for instructions on this process. If you do not have any employees, indicate that on your application.
Surety Bond
If you do not have your Surety Bond, do not submit an application with DMV yet!
DMV does not provide Surety Bonds; you must contact a surety insurance company and have them fill out the Dealer Bond Under NY State Vehicle and Traffic Law Section 415 (6-B) (pdf) (VS-3). Be sure that the business name and mailing address on your bond exactly matches those that show on your application.
The amount of the bond depends on the number of vehicles you anticipate selling (used motor vehicle dealers):
| VEHICLES SOLD IN CALENDAR YEAR | BOND AMOUNT |
|---|---|
| 50 or fewer | $20,000 |
| More than 50 | $100,000 |
| Franchised dealers selling cars, SUVs, light trucks, etc. * Dealers selling only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, snowmobiles are exempt from the bond requirements. |
$50,000 |
Send by mail
You must submit a hard copy of your application, associated documents and fee to this address
NYS DMV
Bureau of Consumer & Facility Services
Application Unit
P.O. Box 2700
Albany, NY 12220-0700
You will be contacted by a clerk from Vehicle Safety’s Application Processing Unit.
Once your application is reviewed for completeness at our Albany office, it will be sent to a regional office for review. They will contact you to schedule an on-site investigation.
On-site investigation
When the automotive facilities inspector (AFI) arrives to inspect your facility, they will be checking that you have the following items
- dealer starter kit
- permanently mounted signs visible from the street ( the AFI will deny your application if your signs are not clearly visible)
- proof of identification for everyone named on the application (driver license or other government issued photo ID)
In addition to the supplies listed above, the AFI will examine your location for these characteristics
- a clear and permanent physical barrier from other businesses that may share your location (separating display areas, signs and offices)
- a display lot
- a mailbox at the business address dedicated to your business only
- a method of locking security items (locking cabinet, safe, etc.)
- heat, electricity, desk and chairs
- a business phone (cell phone is acceptable)
If approved, the DMV will issue you a certificate of registration, MV-50s (Retail Certificates of Sale) and a dealer plate letter (if applicable).
Official dealer sign
DMV does not provide official dealer signs. You may purchase these signs from various sign shops and automotive supply stores.
Your sign needs
- red background and white lettering
- to measure at least 3 feet wide by 2 feet tall
- display “REGISTERED (Facility Number) STATE OF NEW YORK MOTOR VEHICLE DEALER” in two inch block lettering, as configured in the example shown in the footnote 1
- to be permanently mounted and visible at all times from the nearest street or highway
Starter kit components
- Book of Registry (Police Book)
- Bills of sale (Retail Certificate of Sale (MV-50)
- Odometer Statements (except ATV and Boat Dealers)
- Warranty Forms (except ATV and Boat Dealers)
All forms must comply with current Regulations for Motor Vehicle Dealers and Transporters (pdf) (CR-78).
These items may be purchased through these vendors2
- Automotive Dealer Supplies, 518-465-9900, www.automotivedealersupplies.com/
- Fairmount Press, 212-255-2300
- Jan Horan Co., 800-325-3006, www.janhoran.com/
- OMP Printing, 315-853-5569, www.ompprintingandgraphics.com/
- SNYADS Services, 800-916-9723, www.nysada.com/Programs/SNYADSServices.aspx
- NFADA Wholesale Distributors, 716-631-8510, www.discountusedcarsupplies.com
- Aratari Auto Finishers, 585-467-5858, www.aratariautofinishers.com
- Larry Ligarzewski Co., 716-668-0390
- Genesys Systems, 888-548-4000, http://www.newyorkdealerstartupkit.com
How to get a Surety Bond
DMV does not provide Surety Bonds, you must contact a surety insurance company and have them fill out Dealer Bond Under NY State Vehicle and Traffic Law Section 415 (6-B) (pdf) (VS-3) . Be sure that the business name and mailing address on your bond exactly matches those that show on your application.
The amount of the bond depends on the number of vehicles you anticipate selling (used motor vehicle dealers)
| VEHICLES SOLD IN CALENDAR YEAR | BOND AMOUNT |
|---|---|
| 50 or fewer | $20,000 |
| More than 50 | $100,000 |
| Franchised dealers selling cars, SUVs, light trucks, etc. * Dealers selling only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, snowmobiles are exempt from the bond requirements. |
$50,000 |
Snowmobile Dealer
To apply for a snowmobile dealer business certificate you must use form Application for a Snowmobile Dealer Registration (pdf) (RV-253).[porto_product title=”NYS DMV Metal Signs Registered Motor Vehicle Retail Dealer” view=”grid” id=”32850″][porto_product title=”NYS DMV Metal Signs Registered Motor Vehicle Retail Dealer” view=”grid” id=”32850″]
