Before you apply to become a licensed dealership in New York State, you should download and read the DMV Commissioner’s Regulations for Motor Vehicle Dealers and Transporters (PDF) (CR-78) and Facility Requirements - Dealers/Transporters (PDF) (VS-142). You can also call the Office of Vehicle Safety and Clean Air for more information.

To become a licensed dealer in New York State, you must submit:

• Original Facility Application (VS-1) or Application for a Snowmobile Dealer Registration (PDF) (RV-253)
• a copy of your complete original sealed and signed Dealer Bond Under New York State Vehicle and Traffic Law Section 415 (6-b) (PDF) (VS-3) with the power of attorney papers made out to your business name and address
  • Be sure that the business name and mailing address on your bond exactly matches your application.
  • The bond amount depends on the number of vehicles you anticipate selling
    • Dealerships that sell 50 or fewer vehicles must have a bond of $20,000
    • Dealerships that sell more than 50 vehicles must have a bond of $100,000
    • Franchised dealerships that sell cars, SUVs, light trucks, etc. must have a bond of $50,000. Dealers that sell only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats, and snowmobiles are exempt from the bond requirements.
• proof that you have permission to use the property at the business location. This can be a notarized statement from the property owner, lease (may be contingent on facility approval), sub-lease with primary lease, mortgage, deed, or receipted tax bill.
• your sales tax ID number and a copy of your Sales Tax Certificate of Authority. Do not submit your application if you do not have your Certificate of Authority. You may also need a Federal Employer Identification Number from the IRS to complete this step.
• proof of Workers' Compensation Insurance for your employees. If you do not have employees, indicate that on your application. 
• a photocopy of the driver license(s) or other government-issued photo identification for everyone listed on the application
• all required fees paid by checks made payable to the Commissioner of Motor Vehicles. This includes the application/license fee.
• a filing receipt from the New York State Department of State (for a Corporation or LLC) or a business certificate from the County Clerk (for an individual using assumed name or partnership)

The DMV office in Albany will receive your application and check that it is complete, then send it to a regional office for further review. The regional office will contact you to schedule an on-site investigation.

When the automotive facilities inspector (AFI) inspects your facility, the AFI will check that you have the following:

• dealer starter kit
• permanently mounted signs visible from the street. The AFI will deny your application if your signs are not clearly visible.
• proof of identification (driver license or other government-issued photo ID) for everyone named on the application

In addition to the supplies listed above, the AFI will confirm that your location has:

• a clear and permanent physical barrier from other businesses that may share your location such as separating display areas, signs and offices
• a display lot
• 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 the AFI approves your facility, DMV will issue you a certificate of registration, MV-50s (Retail Certificates of Sale) and a dealer plate letter (if applicable).

DMV does not provide official dealer signs. You can 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
• to be permanently mounted and visible at all times from the nearest street or highway

• to display “REGISTERED (Facility Number) STATE OF NEW YORK MOTOR VEHICLE DEALER” in two inch block lettering, as configured in this example: 

  

Your starter kit should have

• Book of Registry (Police Book)
• Bills of sale (Retail Certificate of Sale - form MV-50)
• Odometer Statements (except ATV and Boat Dealers)
• Warranty Forms (except ATV and Boat Dealers)

All forms must comply with current Regulations for Motor Vehicle Dealers and Transporters (PDF) (CR-78).

You can purchase these items through the vendors shown below. DMV does not endorse these companies or otherwise represent that DMV has any association with or oversight of these companies.

• Automotive Dealer Supplies - 518-465-0084 ext. 117
• Fairmount Press - 212-255-2300
• SNYADS Services - 800-916-9723 
• NFADA Wholesale Distributors - 716-631-8510 
• Klute Automotive Dealer Supply (Ryan Klute - Owner) - 716-668-0390
• Genesys Systems - 888-548-4000
• SPS Dealer Source - 315-431-0080
• Reynolds and Reynolds - 914-313-7817