How to get a dealer license in New York

You must register with DMV before doing business as a dealer. DMV treats you as a dealer if you sell or offer more than five vehicles in a calendar year, or display three or more for sale at once or within one month on property you control, when you got them for resale (Commissioner's Regulations 78.1).

• Retail Motor Vehicle Dealer, New: Franchised dealers selling new cars, SUVs and light trucks. They need a franchise agreement and a $50,000 bond.
• Wholesale Motor Vehicle Dealer: Dealers who buy and sell only at wholesale and cannot sell at retail. They do not need display space for three vehicles.
• Transporter: Businesses that need transporter plates to move vehicles for delivery, repair or improvements.
• Boat Dealer: Businesses that buy, sell or trade motorboats.
• ATV Dealer: Businesses that buy, sell or trade ATVs.
• Yacht Broker: Agents for the buyer or seller of a boat.
• Snowmobile dealer: Snowmobile dealers, who apply on Form RV-253.
• Junk and salvage business: Junk and salvage businesses, which apply on Form VS-1JS instead of VS-1D.
• Automobile broker: Businesses that act as automobile brokers, which need their own registration under VTL 415.

Surety bond. $20,000 for retail or wholesale dealers (other than new) that sold 50 or fewer vehicles in the previous calendar year, and $100,000 if they sold more than 50. Franchised new car dealers need $50,000. The surety completes Form VS-3. Dealers selling only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, snowmobiles or limited use vehicles are exempt.

Insurance. Before DMV issues dealer plates, you must show an insurance ID card covering vehicles operated under those plates (Commissioner's Regulations 78.3). If you have employees, you must also send proof of workers' compensation and disability insurance.

Place of business. Retail dealers need space to display at least three vehicles at all times. The site needs heat, electricity, a phone (a cell phone is fine), a desk, a way to lock up security items, and a mailing address and mailbox used only by your business. You need a permanently mounted sign (the DMV page says red background, white letters, at least 3 feet wide by 2 feet tall) and a permanent barrier from any other business at the same location. You must own the property or show a lease, and the location must pass an on-site inspection.

Background check. The application asks whether anyone named, or their immediate family, has been convicted of a misdemeanor or felony, or had an interest in a regulated business whose license was denied, suspended or revoked. You must send copies of a driver license or other government ID for all owners and officers. We found no fingerprinting requirement.

Pre-license education. New York does not require a pre-license course for this license.

1. File your corporation or LLC with the NYS Department of State, or your assumed name certificate with the County Clerk, for proof of business name.
2. Get a sales tax Certificate of Authority (DTF-17A) from the NYS Department of Taxation and Finance.
3. Secure a location that meets the VS-142 and CR-78 rules, including display space for three vehicles and a permanent sign.
4. Buy a $20,000 dealer bond on Form VS-3, or $100,000 if you sold more than 50 vehicles last year.
5. Mail the Original Facility Application (VS-1D) with your documents and $487.50 in fees to DMV.
6. Pass the on-site inspection with your VERIFI book of registry, bills of sale, titles, odometer statements and warranty forms ready (VS-142).
7. Show an insurance ID card to get dealer plates at $20 per set.

Official forms:

• Original Facility Application, dealer/transporter (VS-1D)
• Original Facility Application wizard (VS-1)
• Dealer Bond Under New York State Vehicle and Traffic Law Section 415(6-b), VS-3
• Dealer/Transporter Requirements and Dealer Supply List (VS-142)
• Motor Vehicle Dealers and Transporters Regulations (Part 78), CR-78
• Facility Renewal Application (VS-2)

Retail dealers need display space for at least three vehicles. Wholesale dealers are exempt from that rule but cannot sell at retail, and every dealer still needs a New York place of business that passes inspection.

Dealer-only auctions sell only to licensed dealers, so you need a dealer registration to buy there. Many of these auctions use AuctionACCESS (auctionaccess.com), which limits membership to licensed vehicle dealers and their authorized representatives.

Business registrations are valid for 2 years. DMV mails a Facility Renewal Application (VS-2) near expiration, or you can renew online. You can renew from 60 days before expiration until 6 months after.

This is general information, not legal advice. Rules and fees change, so confirm the details with the New York State Department of Motor Vehicles, Office of Vehicle Safety 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 York.