How to Become a Used Car Dealer in New York State

Becoming a used car dealer in New York takes time, patience and money. There are forms to fill out, surety bonds to obtain and franchise agreements to acquire before you can legally sell cars in New York State.

Things You'll Need

• Motor Vehicle Dealers and Transporters Regulations publication
• Business certificate
• Sales tax number
• Certificate of Authority
• Proof of insurance
• Surety bond
• Franchise agreement
• Statement of ownership
• Driver's license

Instructions

Become a Used Car Dealer in New York State

1. 

   Register with the Division of Vehicle Safety Services.

   Register your dealership with the Division of Vehicle Safety Services at the New York Department of Motor Vehicles. You must also read the Motor Vehicle Dealers and Transporters Regulations published by the DMV.

2. 

   There are several things to obtain to qualify as a registered used car dealer in New York.

   Obtain a business certificate from your county clerk. You will need a sales tax number and a copy of the Certificate of Authority. You can get the Certificate of Authority from the New York State Department of Taxation and Finance. You must also get a surety bond and a statement of ownership so you can do business at the location you want.

3. 

   The application process can be tedious and expensive.

   Apply with the Bureau of Consumer and Facility Services. Pay the fee--as of 2010, it was $37.50--and include payment for a two-year business fee which registers you as a dealer. In 2010, the fee was $450 for cars and trucks. The form is VS-I.1 which can be found on the Department of Motor Vehicles website. The registration process usually takes six to eight weeks. A representative of the DMV will visit the business location while your application is being processed. You will be refunded the business fees paid if your dealership is not approved.

References

• The Unofficial DMV Guide: New York Auto Dealer Licensing Requirements