Getting a used car dealer license in New Mexico

In New Mexico, used-car dealers are licensed by New Mexico Taxation and Revenue Department MVD Dealer Licensing Bureau.

Before your first retail sale you’ll need a $50,000 surety bond, a pre-licensing course and a business location that meets the state’s rules.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

License
Used/preowned motor vehicle dealer mvd.newmexico.gov (source, opens in a new tab)
Issued by
New Mexico Taxation and Revenue Department MVD Dealer Licensing Bureau mvd.newmexico.gov (source, opens in a new tab)
Surety bond
$50,000 bond in agency guide. mvd.newmexico.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
Agency guide requires New Mexico IADA pre-license certificate. mvd.newmexico.gov (source, opens in a new tab)
Official fees
2017 guide lists $50 nonrefundable application. mvd.newmexico.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    New Mexico's Taxation and Revenue Department MVD Dealer Licensing Bureau licenses used (preowned) motor vehicle dealers. Wholesalers, distributors, title-service companies and recyclers are separate. mvd.newmexico.gov › mvd-related-businesses (source, opens in a new tab) mvd.newmexico.gov › chapter-12-dealers-and-other-businesses-licensed-by-mvd (source, opens in a new tab)

  2. Set up the business and local approval

    Get a state CRS tax ID and an FEIN, prepare your entity documents, and get a local business license and zoning evidence. Sign a lease of at least six months. mvd.newmexico.gov › How-to-become-a-NM-Licensed-Dealer-.pdf (source, opens in a new tab)

  3. Take the pre-license course

    The agency's guide requires a pre-license certificate from the New Mexico IADA. mvd.newmexico.gov › How-to-become-a-NM-Licensed-Dealer-.pdf (source, opens in a new tab)

  4. Document the premises

    Prepare a site layout and photos of the display area, the office equipment and your DBA sign. Missing photos or layout are a common reason applications stall. mvd.newmexico.gov › How-to-become-a-NM-Licensed-Dealer-.pdf (source, opens in a new tab)

  5. Get the bond

    The agency guide lists a $50,000 bond. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. mvd.newmexico.gov › How-to-become-a-NM-Licensed-Dealer-.pdf (source, opens in a new tab)

  6. Apply

    Submit the dealer application with the supporting documents for MVD to review. The agency's 2017 guide lists a $50 nonrefundable application fee; check the current details before you file. mvd.newmexico.gov › How-to-become-a-NM-Licensed-Dealer-.pdf (source, opens in a new tab) mvd.newmexico.gov › mvd-related-businesses (source, opens in a new tab)

The location

Display lot
Display area/photos and site layout required. mvd.newmexico.gov (source, opens in a new tab)
Office
Office equipment/photos required. mvd.newmexico.gov (source, opens in a new tab)
Zoning and home-based lots
Local zoning/business license evidence. mvd.newmexico.gov (source, opens in a new tab)

Before you apply

State CRS tax ID, FEIN and entity documents; local business license and lease at least six months. mvd.newmexico.gov (source, opens in a new tab)

Forms

Agency dealer-application guide and business forms hub. mvd.newmexico.gov (source, opens in a new tab)

Get the current versions from mvd.newmexico.gov; we don’t host copies.

Not the license you’re after?

Wholesaler, distributor, title-service company and recycler are separate activities. mvd.newmexico.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: assembling complete premises evidence alongside six-month lease.

Easy mistakes:

Questions

How much does a New Mexico dealer license cost?

The agency's 2017 guide lists a $50 nonrefundable application fee. The premium on the $50,000 bond, the course and a six-month lease cost more. mvd.newmexico.gov › How-to-become-a-NM-Licensed-Dealer-.pdf (source, opens in a new tab)

How long must my lease be?

At least six months. mvd.newmexico.gov › How-to-become-a-NM-Licensed-Dealer-.pdf (source, opens in a new tab)

Sources

Not affiliated with the New Mexico MVD. Not legal advice. Requirements change; always confirm with the state.