How to Get a Dealer License in New York: Cost & Requirements

Last updated: August 19, 2026

New York sizes your dealer bond by how many cars you sold last year. Fifty or fewer and it is $20,000; more than fifty and it jumps to $100,000. The registration itself is $487.50 for a two-year period, there is no course or exam, and the DMV specifies your sign down to its colours and dimensions.

The Bond Is Sized by Last Year’s Volume

Most states set one bond number. New York sets three, and which one applies depends on what you did in the previous calendar year:

Dealer type	Bond
Retail or wholesale dealer (other than new) that sold 50 or fewer vehicles last calendar year	$20,000
Retail or wholesale dealer (other than new) that sold more than 50	$100,000
Retail motor vehicle dealer, new (franchised cars, SUVs, light trucks)	$50,000
Dealers selling only trailers, motorcycles, vehicles over 10,000 lbs, ATVs, boats or snowmobiles	Exempt

The bond goes in on form VS-3, sealed and signed, with power of attorney papers made out to your business name and address — and the name and mailing address on the bond must match your application exactly.

The practical trap: crossing 50 sales in a calendar year changes your bond requirement five-fold for the following period. If you are planning growth, price the $100,000 bond before you get there rather than after.

What It Costs

Item	Cost	Notes
Application and business fees	$487.50	Covers a two-year registration period
First two dealer demonstration plates	Included	Issued on approval at no extra cost
Additional plates	$125 per box of 25	Shipped to your business at no charge
Surety bond	$20,000 / $50,000 / $100,000	By volume and dealer type — see above
New York LLC	$200	Plus New York’s LLC publication requirement

If you are applying as a boat dealer, yacht broker or ATV dealer, the $487.50 may not be the right figure — the DMV asks you to call Vehicle Safety at 518-474-0919 for the correct amount.

The Sign Is Specified Down to the Colours

Plenty of states require “a sign.” New York tells you what it looks like:

• Red background, white lettering.
• At least 3 feet wide by 2 feet tall.
• Permanently mounted and visible at all times from the nearest street or highway.
• Reading: REGISTERED — (your facility number) — STATE OF NEW YORK MOTOR VEHICLE DEALER.

Because the sign carries your facility number, you cannot have it made until the DMV assigns one. Order it after approval, not before.

What the Facility Inspector Checks

A DMV inspector visits before your registration issues, and the checklist is about whether the place is a real, separate business:

• A display lot.
• Heat, electricity, a desk and chairs.
• A business phone — a cell phone is acceptable.
• A mailbox dedicated to your business.
• Secure storage for sensitive items.
• A clear and permanent physical barrier from other businesses.

You also need proof you may use the property: a notarised statement from the owner, a lease (which may be contingent on facility approval), a sub-lease with the primary lease attached, or a mortgage. If any lease expires within the next six months, the DMV wants a letter from the owner or lessor stating an intention to renew.

VERIFI Is Not Optional

Every motor vehicle dealer in New York must enrol in and use VERIFI, the state’s electronic book of registry. Once your facility is approved as a dealership you sign a VERIFI Facility agreement. This replaces the paper book of registry, and it is a condition of holding the registration rather than an add-on.

How to Get Registered, In Order

1. Form the entity and fix the exact business name — the bond, lease and application all have to carry it identically.
2. Secure the premises and gather your proof of permission to use it.
3. Set up the facility: display lot, heat, electricity, desk and chairs, business phone, dedicated mailbox, secure storage, and a permanent barrier from any neighbouring business.
4. Bind the bond at the amount matching your volume band, on form VS-3, sealed and signed with power of attorney.
5. File the Original Facility Application (VS-1D) with a manual signature — stamped or typed signatures are rejected — and the $487.50 in fees.
6. Pass the facility inspection.
7. Sign the VERIFI Facility agreement and order your sign once you have a facility number.

Frequently Asked Questions

How much does a New York dealer license cost?

$487.50 in application and business fees, which covers a two-year registration period. Your first two dealer demonstration plates are included at no extra cost. Additional plates are sold in boxes of 25 for $125, shipped to your business at no charge. Boat dealers, yacht brokers and ATV dealers pay a different amount.

How much is the New York dealer bond?

It depends on last year’s volume. A retail or wholesale dealer that sold 50 or fewer vehicles during the previous calendar year posts $20,000; one that sold more than 50 posts $100,000. Franchised new car dealers post $50,000. Dealers selling only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats or snowmobiles are exempt from bonding.

What sign does New York require on a dealership?

A permanently mounted sign with a red background and white lettering, at least 3 feet wide by 2 feet tall, visible at all times from the nearest street or highway. It must read REGISTERED, then your facility number, then STATE OF NEW YORK MOTOR VEHICLE DEALER. New York specifies the colors and dimensions, not just the wording.

Do I need to take a course for a New York dealer license?

No. New York does not require a pre-licensing course or exam for a motor vehicle dealer registration. What it requires instead is a facility that passes inspection and enrollment in VERIFI, the state’s electronic book of registry, which every motor vehicle dealer must sign up for and use.

Sources

Source	What it confirms
NY DMV — Open a Dealership	Sign specification, facility inspection checklist, proof of property use, VERIFI
VS-142, Dealer/Transporter Requirements	Bond bands by volume and dealer type, VS-3 bond and power of attorney
VS-1D, Original Facility Application	$487.50 application and business fees, manual signature requirement, plate and MV-50 requests
NY DMV — Dealer Plates	First two plates included, $125 per box of 25 thereafter