To apply, you must:
9 New York Dealer License Requirements
Dealer Licenses in New York are issued by the New York State Department of Motor Vehicles, Division of Vehicle Safety Services. This page covers New York's 3 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. It goes on the VS-1D application, the bond, the sales tax Certificate of Authority, and the sign on your door.
New York's Dealer application accepts an individual, an individual with an assumed name (DBA), a partnership, a corporation, or an LLC. Government agencies and schools have their own box. An LLC keeps your business separate from your personal life and adds trust to the name.
Start with the LLC or corporation you plan to keep. A sole proprietor who later forms a partnership or corporation starts over with a new dealer registration (15 NYCRR §78.6(a)(2)). A partnership that adds a partner keeps its registration and files an amendment.
Choose your Dealer License Type
New York issues 3 main Dealer License types on one form, VS-1D: Retail New, Retail Other, and Wholesale. Most people start with Wholesale because it is exempt from the display lot and the street sign. No license type requires a class, an exam, or fingerprints.
| License Type | What It Lets You Do |
|---|---|
| Wholesale Motor Vehicle DealerWholesale only — the form says “cannot sell retail” | Buy and sell with licensed Dealers and at dealer auctions. Exempt from the 3-vehicle display area and the street-visible sign, so no lot is required |
| Retail Motor Vehicle Dealer, OtherThe general used-vehicle license | Buy and sell at retail — the form lists “motorcycles, trailers, used cars, RVs, heavy trucks, etc.” Requires space to display 3 vehicles at all times and a street-visible sign |
| Retail Motor Vehicle Dealer, NewFranchised | Sell new franchised passenger cars, SUVs, and light trucks. Requires a copy of every franchise agreement and a $50,000 bond |
| Automobile BrokerA separate registration under General Business Law Article 35-B | Requires its own $100,000 bond, and only “a designated permanent location” as a place of business |
| Boat Dealer, ATV Dealer, Yacht Broker | Separate boxes on the same VS-1D form. The form says its $487.50 fee total may not apply; call Vehicle Safety at (518) 474-0919 for the exact fee |
| Transporter | Not a sales license: limited operation for delivery, repair, or improvement |
Get your Dealer Bond (Surety Bond)
A New York Dealer License requires a bond sized by your sales, filed with DMV (VTL §415(6-b)). A bond is a guarantee that pays a customer if you break a dealer law. Every first application for Wholesale or Retail Other starts at $20,000.
A Dealer who sold more than 50 vehicles last year files $100,000, and a new-vehicle (franchise) dealer files $50,000. The tier is re-tested at every 2-year renewal. At the 1% rate, a $20,000 bond costs $200 a year, after a credit check.
| License Type | You Pay | Bond Amount |
|---|---|---|
| Wholesale or Retail Dealer, OtherFirst-time applicant, or 50 or fewer sales last year. New York - Motor Vehicle Dealer | $200/year1% of the bond, after a credit check | $20,000 |
| Wholesale or Retail Dealer, OtherMore than 50 sales last year. New York - Motor Vehicle Dealer | $1,000/year1% of the bond, after a credit check | $100,000 |
| Retail Motor Vehicle Dealer, NewFranchised new-vehicle dealer. New York - Motor Vehicle Dealer | $500/year1% of the bond, after a credit check | $50,000 |
| Automobile BrokerA separate registration. New York - Automobile Brokers ($100,000) | $1,000/year1% of the bond; underwriting required | $100,000 |
| Trailer, motorcycle, ATV, boat, or snowmobile dealers | No Bond Required | |
Get your Insurance ID Card — for dealer plates
New York requires no insurance policy to issue the Dealer License itself. Before DMV issues dealer plates, you must present an insurance ID card for the vehicles you drive on them (15 NYCRR §78.3(c)). Your insurance agent quotes the price.
If you have employees as defined by the Workers' Compensation Board, the application also asks for proof of Workers' Compensation and Disability coverage. A Dealer with no plates and no employees files no insurance at all.
Set up your Dealer Office
A New York Dealer License requires “a place of business in this state” (15 NYCRR §78.3(d)). No New York rule names a residence as a banned location for any dealer type. Only the business must be in New York.
Wholesale is exempt from the 3-vehicle display area and the street-visible sign; Retail must have both. An Automobile Broker's place of business is only “a designated permanent location at which the business of the automobile broker business is conducted” (GBL §736(4)).
Every Dealer location must have:
- heat, electricity, a phone (cell phones are acceptable), and a desk
- a separate and exclusive mailing address, verified by the U.S. Postal Service, with exclusive use of the mail receptacle — a shared or third-party mailbox does not qualify
- a locking cabinet or safe for MV-50 books and proofs of ownership
- a permanent sign or window lettering with the business name on the front of the premises
- a permanent physical barrier — a non-movable wall, fence, or landscaping — if another business shares the location
| Wholesale | Retail | |
|---|---|---|
| Display area | Exempt | Space to display at least 3 vehicles at all times |
| Street sign | Not required | An official dealer sign or a permanent sign at least 3 feet by 2 feet, visible from the nearest street or highway |
Complete the Background Check (VS-1D Part 3)
New York takes no fingerprints and runs no Live Scan for a Dealer License. The application asks instead whether you, anyone named on it, or their immediate family has ever been convicted of any misdemeanor or felony. A false answer is a criminal offense.
If you have a record:
- The only conviction ground is “any crime involving dishonesty or deceit” (VTL §415(9)(g)), felony or misdemeanor alike
- Correction Law §752 bars a denial for any other record unless it directly relates to the license or poses an unreasonable risk to the public
- There is no waiting period, and the check costs nothing
- A sealed conviction cannot be asked about (Executive Law §296(16)); a Certificate of Relief from Disabilities or of Good Conduct creates a presumption of rehabilitation
- If denied, you can request written reasons, due within 30 days, and appeal in court under Article 78
Get your Dealer License Plates
New York dealer license plates let you drive your inventory: any vehicle you own or control and hold for sale or demonstration. You request how many on the VS-1D application; there is no published cap. Each plate costs $20 a year, a “set” is 1 plate, and DMV issues them once you present your insurance ID card.
Family and employee use is banned. It is “unlawful… to use dealer plates on vehicles owned by members of the dealer's family or employees” (15 NYCRR §78.21(b)), with no exception.
A plate, sometimes called a dealer tag, may be loaned to a purchaser or prospective purchaser for up to 5 days. A test drive under 24 hours is not a loan.
A separate optional program, DPIP (form MV-463), lets an established retail Dealer issue permanent plates to customers at the point of sale. It requires 1 year as a retail Dealer and 25 retail sales in the prior year, both waivable for new-vehicle dealers.
Submit your Dealer License Application (VS-1D)
New York's original Dealer License application is a paper form, VS-1D, mailed to Vehicle Safety Services in Albany. There is no online portal for a first application; only renewals are online. The form's printed total is $487.50: a $37.50 application fee plus $225 a year to register for 2 years. Plates and the bond are separate costs.
Every applicant, including a sole proprietor, must provide a Federal EIN on the form. Every applicant except a Transporter must also attach a NYS Sales Tax Certificate of Authority (DTF-17A) or a valid NYS tax ID. DMV's own page says: “Do not submit your application if you do not have your Certificate of Authority.”
Pass the Site Inspection
A DMV Automotive Facilities Inspector visits your location after you mail the application, and the registration is issued once the site passes. DMV's regional office contacts you to schedule the visit.
The inspector checks VS-142 items 11–15: VERIFI enrollment, utilities, phone and desk, the Retail display space, signs, and any barrier from a shared business. Bring ID for everyone named on the application.
Dealer License Cost
A New York Dealer License costs $487.50 to apply and register for 2 years, the total printed on form VS-1D. That is a $37.50 application fee plus $225 a year, and the application fee is one of the lowest in the country. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Application fee | $37.50 one-time, non-refundable$25 from April 1, 2028 |
| Dealer registration | $225 a year$450 for the 2-year term$150 a year from April 1, 2028 |
| Application and Business FeesThe total printed on VS-1D | $487.50 application fee plus the 2-year registration |
| Dealer plates | $20 per plate per year$40 per plate for the 2-year term, prorated if issued for less |
| Dealer Bond | $200 a year on the $20,000 tier$500 a year on $50,000, new-vehicle dealer$1,000 a year on $100,000$1,000 a year, Automobile BrokerAll at 1% of the bond amount; credit check or underwriting required |
| Insurance ID card | Policy priced by your agent; required before plates are issued |
| Background check | $0 — no fingerprints, no fee |
| Class and exam | None required |
| Renewal, every 2 years | $450 registration$20 per plate per year |
| Boat Dealer, ATV Dealer, or Yacht Broker | Call (518) 474-0919 — the $487.50 total may not apply |
Dealer License Renewal
A New York Dealer License is valid for 2 years, and you can renew online at dmv.ny.gov with form VS-2. Renewal costs $450 for the 2-year registration plus $20 per plate per year, and your plates expire the same day as the registration.
- Your bond tier is re-set. The form asks how many vehicles you sold last year, which sets the amount for the next 2 years
- The conviction question looks back 5 years, not a lifetime as on the original application
Common Questions
Can you get a Dealer License in New York without a lot?
Yes, on the Wholesale Motor Vehicle Dealer license. New York exempts wholesale dealers from the 3-vehicle display area and the street-visible sign, and no rule names a residence as a banned location. Retail must display at least 3 vehicles at all times. The separate Automobile Broker registration requires only “a designated permanent location.” See the office requirements.
How many cars can you sell in New York without a Dealer License?
A Dealer License is required once you sell more than 5 vehicles bought for resale in a calendar year (VTL §415). Being in the business of reselling cars can require a Dealer License even below that. Selling your own personal vehicles doesn't count.
How do you get an auction license in New York?
A Dealer License is what opens the dealer-only auctions in New York. The Wholesale Motor Vehicle Dealer registration buys and sells with licensed Dealers and at dealer auctions. It is exempt from the 3-vehicle display area, so no lot is required, and the form says it cannot sell retail. Public auctions need no license.
Can you get a New York Dealer License with a felony?
Yes — New York has no waiting period, and the only conviction ground is “any crime involving dishonesty or deceit” (VTL §415(9)(g)). Correction Law §752 bars a denial for an unrelated record, and DMV must weigh 8 factors such as time elapsed and rehabilitation. A sealed conviction cannot be asked about, and the application takes no fingerprints.
How much does a New York Dealer License cost?
A New York Dealer License costs $487.50 for the first 2 years: a $37.50 application fee plus $225 a year to register. Dealer plates are $20 per plate per year, and a first-time Dealer's $20,000 bond costs $200 a year at the 1% rate. There is no class, exam, or fingerprint fee. See the cost table.
How do you get a wholesale Dealer License in New York?
In New York, a wholesale Dealer files the same VS-1D application as retail and checks the “Wholesale Motor Vehicle Dealer” box. The form limits it to wholesale: “cannot sell retail,” in its own words. The fee, bond, and inspection are the same; only the display area and street sign drop away. See the license types.
How long does it take to get a New York Dealer License?
New York publishes no deadline: no statute sets a number of days for DMV to grant or deny a dealer registration. After you mail the VS-1D, the regional office schedules the inspection, and the registration is issued once the site passes. Private licensing services estimate 30 to 90 days, but that is not a DMV figure.
Do I need a business bank account for a New York Dealer License?
No. New York's VS-1D application has no bank account section anywhere in its 8 pages, so it never asks you to list one. You can open one whenever the business needs it.
Support
Questions about the VS-1D go to the Office of Vehicle Safety Application Unit; the form itself says to call if you need assistance. Corporation and LLC filing receipts come from the NYS Department of State.
| Contact | Detail |
|---|---|
| Department | New York State Department of Motor Vehicles, Division of Vehicle Safety Services — Office of Vehicle Safety Application Unit |
| Phone | (518) 474-0919 Vehicle Safety Application Unit(518) 473-2492 NYS Department of State, for LLC and corporation filing receipts |
| Mail your application to | Vehicle Safety Services, Application Unit6 Empire State Plaza, Room 220Albany, NY 12228-0001 |
| Mail renewals to | Bureau of Consumer and Facility ServicesPO Box 2700, Albany, NY 12220-0700 |
Additional sources (7)
The forms for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- Vehicle and Traffic Law §415 — the dealer statute: registration, the sales-tiered bond, the fee schedule with its April 1, 2028 step-down, and the “dishonesty or deceit” ground
- Executive Law §296(16) — bars any state agency from asking about a sealed conviction when it licenses you
- Criminal Procedure Law §160.59 — sealing up to 2 convictions, no more than 1 felony, 10 years after sentencing or release
- Correction Law §754 — a written statement of the reasons for a denial, within 30 days of your request
- General Business Law §740-a — the Automobile Broker's $100,000 bond
- Form DTF-17.1, Business Contact and Responsible Person Questionnaire (PDF) — the Tax Department form whose “SSN or ITIN” field defines who counts as a responsible person
- Instructions for the Sales Tax Certificate of Authority — the checklist of what each business contact and responsible person supplies
