New Mexico MVD Bond

Summary

A New Mexico Motor Vehicle Division (MVD) bond is a type of surety bond required of motor vehicle dealers in the state. The bond is meant to protect consumers from any loss due to fraud, misrepresentation or other criminal activities perpetrated by dealers. The MVD requires all motor vehicle dealers to post a surety bond in the amount of $50,000 before they can be licensed. The bond is good for two years and must be renewed annually to remain valid. The bond guarantees that the dealer will comply with all state laws and regulations pertaining to motor vehicle sales and will reimburse any customer who incurs losses due to the dealer’s misconduct. In the event of a claim, the surety company that issued the bond pays the customer and then seeks reimbursement from the dealer.

What is an New Mexico Dealer Bond? 

New Mexico Car Dealer Bonds are required by New Mexico's MVD to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $50,000.  The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.

The State requires a Car Dealer bond for each license you hold:  

$50,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers and all other types of Dealers

Different parts of a bond:

There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee  is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

Try our 100%  Secure MVD Bond Online Application to get the Lowest Lost title bond rates in all 50 States.

Program:

You can buy your New Mexico Car Dealer bond (Apply) online immediately

New Mexico MVD Bond Requirements and Information:

The requirements and application for a bond:

https://www.mvd.newmexico.gov/wp-content/uploads/2020/12/mvd10175.pdf

Before you start your Dealer Application

A company or an individual that sells more than four vehicles in a year is required to be licensed

by the Dealer Licensing Bureau.

Please take the time to review these directions prior to entering your information online. You

must complete the application from start to finish and provide all the necessary documents in

one sitting.

The following is a user guide to submit an application. Submission does not guarantee you will

be granted a license. The $50.00 fee is non-refundable.

Required documents and information

Documents will need to be scanned and/or attached to application.

Business Identification numbers - NM Tax ID-CRS, Federal tax ID, Secretary of

State assigned corporation or partnership number

Business Ownership documents – Certificate and Articles of Organization (LLC)

or Incorporation

Individual Owner information Driver’s License number, phone number,

address, etc

 Location information

 Zoning Document

 Business License

 Property Lease- minimum of 6 months

 $50,000 Dealer Bond Documents

 Pre-Licensing Education certificate for Pre-Owned dealers- contact New Mexico

Independent Auto Dealers Association

 Franchise agreement from a manufacturer for new car dealers

 Pictures or Diagrams

 Business Site Location

 Vehicle Display Area

 Office Building

 Inside Office Space

 Office Equipment

 Signage (Doing Business As Name must match the sign)

 Diagram of Property Layout including location of sign

 Inside Office Space Layout

 $50 application fee-credit card or e-check