How to get New York State Used Car Dealers License -step-by-step-guide

If you wish to legally flip cars for a profit in New York, then the NY Department of Motor Vehicles requires you to get a New York Autombile Car Dealer License.

The used car dealer license requirements for NYS (New York State) are the same as any other state in that they require you to have an approved location.

Step 1# Find a suitable Location (Facility)

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Here is the number one step when looking at the used car dealer license requirements for NY (new york state).  Your approved location must be large enough to hold at least 3 vehicles.  Here are the specific facility (location requirements for getting your used car dealer license in NY).


This is what to expect at your on-site investigation:

Be ready! When the automotive facilities inspector (AFI) arrives to inspect your facility, they will be checking that you have the following items

• Dealer starter kit (starter forms and documents you purchase this)
• 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 (car) lot that holds at least 3 cars
• 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 will cost you $250) and a Dealer Plate letter (if applicable).

How do I get an official dealer sign?

DMV does not provide official dealer signs.  Used car dealer license requirements for NY (New York) have specific signage requirements and will cost you approximatley $200  depending on where you go. 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.
• To be permanently mounted and visible at all times from the nearest street or highway

>>>>So, in a nut shell, used car dealer license requirements for New York State mandate you  to complete an NY Dealer License Application,  get a Sales Tax ID Number, purchase insurance, secure a surety bond, and provide other necessary documents and fees<<<<

Step #2: Complete Original Facility Application

You can download the form online or call the Office of Vehicle Safety and Clean Air at 1-518-474-4653 to get the form.

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Step #3: Complete Other Requirements

• Get a Certificate of Authority and Tax ID

  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.

• Obtain Worker’s Compensation Insurance
• If you are an individual or partnership, you will need to get a Business Certificate from the County Clerk.
• If you are a CORP or LLC, obtain Filing Receipt from NYS Department of State

 

 

 

 

 

 

 

 

 

Step #4: Purchase a New York State Motor Vehicle Dealer Bond

The major prerequisite for getting licensed in New York State is being able to qualify and obtain an auto dealer bond. A New York State Motor Vehicle Dealer Bond is a type of surety bond that protects your customers. If a customer whom you sold a car to, feels you are running an unethical business, they can make a claim against your bond. The actual bonding amounts vary depending on the amount of vehicle sales and the license type.

So the surety bond amounts:

• $20,000 bond if selling less than 50 used vehicles/year
• $100,000 bond if selling more than 50 used vehicles/year

You will pay somewhere between 1-15% of the total bond amount, based on your personal credit. This would be annual payment.

Step #5: Pay fees

• $37.50 non-refundable NY Dealer License application fee
• $450 NY Dealer License registration fee.

If you are not approved for an NY Dealer License, the $450 fee will be refunded to you.

Step #6: Submit Documents

Mail or bring your NY Dealer License forms, documentation, and NY Motor Vehicle Bond to the Commissioner of Motor Vehicles.

Bureau of Consumer and Facility Services
Attention: Application Unit
P.O. Box 2700
Albany, NY 12220-0700

Step #7: Check the mail in 4 weeks

You need to be ready for an Automotive Facilities Inspector (AFI) to interview you and inspect your dealership premises during this waiting period. Download this PDF to review the checklist as per DMV–> Read this.

Wait for the Commission of Motor Vehicles’ to process your NY Used Dealer License application. This could take up to 4 weeks.

• If your application was not accepted, you will be refunded your $450 application Fee.
• If your application was accepted, you will be issued a New York Used Car Dealer License.

This is the whole process…it can be a bit much for the average person to do, or want to do. The used car dealer license requirements for ny keeps many people out of the business because of the high financial hurdle you have to jump over and be able to maintain for the first 6 months from you savings. Auction Access is an alternative to becoming a Licensed Dealer (with less costs)….it gets you into the nationwide Manheim and Adesa, Iaa, CarMax Dealer auctions right away. Start buying wholesale vehicles right away. Buy online and go the physical auctions. It’s a sponsorship but it get you most of the benefits you need right away for a small sign-up fee. A licensed used car dealer processes all of your titles and re-assignments.

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