How to get a dealer license in New Mexico

No one may carry on the business of a dealer in vehicles of a type subject to registration without an MVD license (NMSA 66-4-1(A)). A person making casual sales of their own vehicles is not a dealer, but casual sales are limited to four vehicles in a calendar year, all titled in the seller's name (NMSA 66-1-4.4; MVD Vehicle Procedures Manual, chapter 12). MVD's dealer guide says a company or person that sells more than four vehicles in a year must be licensed.

• Retail dealer (new or used): Selling new or used vehicles to the public, including trailers, towable RVs, motorcycles over 55cc, and off-highway vehicles. Used dealers need pre-licensing education, and new car dealers need a manufacturer franchise agreement.
• Wholesaler: Selling vehicles to dealers rather than to the public. MVD's guide says a wholesale license still requires a physical location.
• Distributor: Distributing or selling new or used motor vehicles to dealers, when the business is not a manufacturer.
• Manufacturer: Vehicle manufacturers. MVD's online application lists it as a license type.
• Motorcycle-only dealer: Dealers who sell only motorcycles. The bond is $12,500 instead of $50,000.
• Auto recycler: Wrecking or dismantling vehicles to resell parts or scrap. An auto recycler may not sell vehicles that are subject to registration.
• Title service company: Businesses that prepare or submit title and registration applications for others for a fee.

Surety bond. Dealers and auto recyclers must file a $50,000 corporate surety bond, and motorcycle dealers file a $12,500 bond, on form MVD-10175. The bond must be an original, in the same business and trade name as the license application (18.19.4.8 NMAC). It must be continuous and stay in effect for the whole license period (18.19.4.16 NMAC); MVD-10781 gives April 1 to March 31 as an example. Each additional location needs its own bond or a rider (18.19.4.9 NMAC). If a bond lapses and MVD demands a new one, the license is invalid if you do not provide it within 5 business days.

Insurance. We found no garage or liability insurance requirement for a dealer license in MVD's dealer guide, form MVD-10781, or 18.19.4 NMAC.

Place of business. The established place of business must be an enclosed building on a permanent foundation that meets local zoning, used only for the dealer's business and incidental business (18.19.4.50 NMAC). A lease must run at least 6 months. It cannot be in a common area such as a shopping mall or a parking lot open to the public (18.19.4.51 NMAC). You need space to safely display at least one vehicle of the type you sell, customer parking, office furniture and equipment, and room to keep your records, which must be open for inspection (18.19.4.54 to 18.19.4.56 NMAC). Your sign must show the dealer or trade name listed on the business license and bond (18.19.4.57 NMAC). A local official certifies zoning compliance, and MVD approves the site by physical inspection or by reviewing plans, drawings, or photos before licensing (18.19.4.10 and 18.19.4.11 NMAC).

Background check. The dealer application (MVD-10781 is the renewal version) authorizes the Taxation and Revenue Department and law enforcement to investigate each owner's character, credit, criminal, employment, driving, and tax history. It asks about arrests, charges, or convictions in the past 10 years and about past license denials or discipline. A felony related to the use, sale, or exchange of a motor vehicle disqualifies an applicant (18.19.4.14 NMAC), and MVD may refuse a license to a delinquent taxpayer (18.19.4.31 NMAC).

Pre-license education. Required (8 hours). Approved courses and details.

1. Register your business and get a New Mexico CRS tax ID, a federal tax ID, and, for a company, a Secretary of State number.
2. Lease or buy a location that meets 18.19.4.50 to 18.19.4.57 NMAC, with a lease of at least 6 months, and get a zoning document and a local business license.
3. Complete 8 hours of approved pre-licensing education if you will be a used (non-franchise) dealer.
4. Buy a $50,000 dealer bond on form MVD-10175 in your exact business name ($12,500 for motorcycles only).
5. Take photos and draw diagrams of the site, display area, office, office equipment, and sign.
6. Create a MyMVD account and submit the dealer application with all documents and the $50 fee in one sitting.
7. Pass MVD's site review or inspection and the local zoning certification.
8. Display your license at your place of business and renew it every year.

Official forms:

• Vehicle Dealer or Auto Recycler Bond (MVD-10175)
• Application for Dealer License Renewal (MVD-10781)

No. Every dealer needs an enclosed building on a permanent foundation with space to display at least one vehicle (18.19.4.50 and 18.19.4.54 NMAC), and MVD's guide says a wholesale license still requires a physical location.

Dealer-only auctions sell only to licensed dealers, so you need a dealer license to buy there. AuctionACCESS (auctionaccess.com) restricts membership to licensed, credentialed vehicle dealers and their authorized representatives.

Renew every year through your MyMVD account or on form MVD-10781, which must be signed and notarized. Include the $50 fee, bond renewal receipts for every location, and copies of your local business licenses. State law requires 4 hours of continuing education each year to renew (NMSA 66-4-2(A)); the renewal form asks non-franchise dealers for a certificate every two years. A renewal counts as timely only if MVD receives it with the fee and bond on or before the license expires (18.19.4.30 NMAC).

This is general information, not legal advice. Rules and fees change, so confirm the details with the New Mexico Taxation and Revenue Department, Motor Vehicle Division (MVD), Dealer Licensing Bureau before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in New Mexico.