New York requires most motor vehicle dealers to carry a surety bond as a condition of their DMV dealer registration. Form VS-3 is the DMV’s bond instrument under Vehicle and Traffic Law §415(6-b); the amount is $20,000, $50,000 or $100,000 depending on the dealer type and sales volume.
| Title / common name | Dealer Bond Under New York State Vehicle and Traffic Law Section 415(6-b) (NY DMV Form VS-3) |
|---|---|
| Bond type | License & permit |
| Industry / license category | Automotive / motor vehicle dealer |
| Jurisdiction | United States → New York → New York State Department of Motor Vehicles (NY DMV) |
| Obligee | State of New York On Form VS-3 the principal and surety bind themselves to the State of New York. Cancellation notices go to the New York State Commissioner of Motor Vehicles. |
| Typical penal sum | USD $20,000 / $50,000 / $100,000 (tiered by statute) N.Y. Vehicle and Traffic Law §415(6-b)(a): $20,000 for a dealer applying for the first time or that sold 50 or fewer vehicles in the previous calendar year; $100,000 for a dealer that sold more than 50; $50,000 for new motor vehicle (franchised) dealer and qualified dealer applicants. The bond amount line on VS-3 is blank — confirm the amount on the issued bond. |
| Who needs it | Dealers, qualified dealers and new motor vehicle dealers applying for or holding a New York dealer registration certificate under VTL §415 NY DMV says dealers that sell only trailers, motorcycles, vehicles over 10,000 pounds, ATVs, boats and snowmobiles are exempt from the bond requirement. A copy of the complete original sealed and signed VS-3, with the power of attorney, goes in with the Original Facility Application (VS-1). |
| What it covers | Paying valid bank drafts and checks the dealer writes to buy vehicles; transferring good title on each vehicle sold; keeping customer deposits safe until title passes; paying fines imposed by the Commissioner of Motor Vehicles; and repaying registration and title overcharges A person — including the State — who gets a judgment against the dealer for a covered act during the bond term may recover. Total surety liability is capped at the face amount, regardless of the number of claims or years in force. |
| Form number / edition | VS-3 (3/17) Edition shown in the form footer. The statute requires the bond to be approved as to form by the Commissioner and issued by a surety authorized in New York by the Department of Financial Services. |
| Effective | Continuous from the start date on the bond until cancelled by the surety on 60 days’ written notice to the Commissioner of Motor Vehicles |
| Source | NY DMV — Form VS-3 Dealer Bond Under VTL §415(6-b) (PDF) (official PDF · VS-3 (3/17)) Also: NY DMV — Open a Dealership (bond tiers and filing steps); N.Y. Vehicle and Traffic Law §415 (subdivision 6-b dealer surety bond) |
| Status | current |
| Last verified | 2026-10-12 |
Name and mailing address on the bond must match the dealer application exactly, per NY DMV.
NY DMV publishes Form VS-3 as a public PDF. Open the Source link above for the official form — Global Guarantors summarizes field facts and links the statute rather than hosting the complete bond body.