New Mexico Dealer Training

New Mexico Dealer License Requirements in 8 Easy Steps

Click Here for New Mexico Dealer License Instructions

1. Complete Application

The first step in obtaining a New Mexico dealers license it to complete an application. You can apply for your dealer license on paper, or you may apply online. The application for your New Mexico Dealer License must be completed correctly. Mistakes on the dealer application could cause substantial delays in the approval of your license.

2. Obtain Business Licenses

You must obtain business licenses before you open your New Mexico dealership. You will need to register you dealership with the New Mexico Secretary of State's office so you can obtain your dealer license. When you register your business with the New Mexico Secretary of State you will obtain a Secretary of State number. This number must be enclosed on your dealer license application. Before you apply for you dealer license you will need to decide on your business entity, such as Limited Liability Company or Corporation. You can call the New Mexico Secretary of State's office at 505-827-4508 . You must also get a New Mexico Tax Id CRS number. This business number is used to track your taxes by the State of New Mexico. It can easily be obtained at the New Mexico Taxation and Revenue Department. You will need to also gain a Federal Tax ID Number in order to be granted a New Mexico dealer license. This is number that is assigned to your dealership by the Federal government. It helps them track the profits from having a dealers license. And finally, you will need to submit copies of local business licenses that are required by the municipality or county your dealership is located in. All of these steps must be completed BEFORE you submit your dealers license application.

3. Zoning Information

New Mexico State law requires every business building that contains a dealers license to meet all local zoning requirements. Sometimes city and county zoning will supersede state zoning laws. Before you sign a lease or purchase a building you must make sure the building meets all local zoning laws. When you locate building you can call the city hall or county court house and ask for planning and zoning, then state the address of the building. Some municipalities have strict zoning and may possibly prohibit you from having a New Mexico Dealers License at some locations. When you apply you will need to submit proof that the building you are using meets all local zoning requirements.

4. Business Lease

You must enclose a copy of you property lease with your dealer application. You cannot get a license if you do not submit this documentation. The property lease for your business location must be for at least 6 months. If you own the building that will house your dealer license then you must submit ownership documentation.

5. $50,000 Dealer Surety Bond

Be sure to obtain a $50,000 dealer surety bond before you submit your dealers license application. A dealer surety bond ensures the dealer operates with the highest level of ethical standards. Does a $50,000 dealer surety bond cost $50,000? No. The price of your bond is dependent on your credit score. If you have good credit you dealer surety bond should cost about $450 to $500 per year. If you have a couple of blemishes on you dealer bond, the price of the bond can go up substantially. You must ensure your dealer surety bond is in effect the entire time you have an active New Mexico Dealer License. New Mexico dealers that are only licensed to sell motorcycles are only required to obtain a $12,500 bond. You must obtain a dealer surety bond before you submit your New Mexico Dealer License Application.

6. Submit Pictures or Diagrams

The Motor Vehicle Division wants to know what your operations look like so you must submit pictures or a diagram of you property. For dealer license approval you need to submit a picture or diagram of your building, your lot, the inside & outside of your office, office equipment, business sign, diagram of entire building layout & diagram of office layout, and a picture of the entire business operations.

8. Used Dealer Training Class

The state requires you to take an 8 hour pre-used dealer training class before your dealer license application can be approved.  The dealer license classes are held in Albuquerque. You must take the course from a dealer educational provider that is approved by the State. You are required to set through the entire 8 hour New Mexico Dealer License class, then submit your proof of training with your dealer license application.