How to Get Your New Mexico Auto Dealer License in 7 Steps

To legally sell motor vehicles in New Mexico, dealers must apply for a license through the Dealer Licensing Bureau under the Motor Vehicle Division.

Securing this license is straightforward when following the steps in this guide, from choosing the proper license type to submitting an application, along with all supporting documents.

1. Choose Your License Type

Before applying, ensure your business falls under the right license type:

• Distributor license – Anyone who makes new or used vehicles available to other licensed dealers
• Manufacturer license – Businesses that manufacture and sell new vehicles to licensed dealers
• Retail dealer license – Anyone who markets, attempts to secure a sale, or sells used or new trailers, manufactured homes, and motor vehicles
• Wholesale dealer license – Any person who sells or seeks to sell vehicles to other licensed dealers or who is acting on behalf of a vehicle dealer, distributor, or manufacturer to promote or arrange such sales

2. Set up an Approved Business Location

To meet state licensing requirements, a New Mexico car dealership must operate from a business location that satisfies all the conditions listed below:

• Has enough area to showcase vehicles and offers appropriate parking for visitors
• Features a fully enclosed office built on a fixed foundation, with interior space sufficient for dealership operations
• The dealership must not be located at a residential address
• The premises must be dedicated solely to motor vehicle dealer operations
• The business site must be under the applicant’s ownership or leased for no less than six months
• Hours of business must be clearly displayed at the dealership’s location
• Files and books must be properly stored and accessible for inspection at any time
• The dealership’s registered business name must appear on a clearly posted permanent sign at the business location

3. Register Your Business

To operate as a dealer, and in fact as any business in New Mexico, you must register your business entity, such as a corporation or limited partnership, with the Secretary of State. Corporations must file Articles of Incorporation, while limited partnerships must file a Certificate of Limited Partnership.

In addition to registering your business entity with the Secretary of State, you must register with the New Mexico Taxation and Revenue Department (TRD) to obtain a Combined Reporting System (CRS) number. Motor vehicle dealers are subject to Gross Receipts Tax (GRT) and must be properly registered to report and remit taxes before beginning operations.

4. Complete a Pre-Licensing Course

All applicants for a used auto dealer license must first take an eight-hour pre-licensing course recognized by the Motor Vehicle Division. The training covers topics such as:

• Industry standards
• Operational procedures
• Dealer obligations
• Transaction records
• Applicable regulations and statutes
• State and federal standards

5. Get an Auto Dealer Bond

Motor vehicle dealers, distributors, wholesalers, and auto recyclers in New Mexico must secure a $50,000 motor vehicle dealer or dismantler bond before applying for a license. Motorcycle dealers are required to obtain a $12,500 motor vehicle dealer or dismantler bond.

The department requires this bond to protect buyers and any future purchasers from financial loss or damage resulting from fraudulent statements by the seller, a faulty title, or false claims that the vehicle is free of liens.

6. Prepare the Required Documentation and Information

To meet New Mexico dealer license requirements, your application must include the following documents and details:

• Proof of business registration, including filed formation documents (e.g., Articles of Incorporation or Articles of Organization) accepted by the New Mexico Secretary of State
• Business registration identifiers, including state-issued corporate or partnership number, Federal Employer Identification Number (EIN), and New Mexico Combined Reporting System (CRS) number
• Personal details of the individual owner, such as residential address, contact information, and driver’s license number
• Documents verifying the dealer’s bond
• Pre-licensing education certificate required for used vehicle dealers; inquiries should be directed to the New Mexico Independent Auto Dealers Association
• Manufacturer-issued franchise agreement granting the dealer the right to sell new vehicles (required only for new motor vehicle dealers)
• Application fee of $50, payable by electronic check or credit card
• Disclosure of any instance in which a corporate officer, partner, or the applicant has been convicted, charged with a criminal offense, arrested, or entered a plea of no contest in a felony or misdemeanor case. The Motor Vehicle Division reviews these disclosures and may deny a license if the applicant has a history of fraud, motor vehicle–related crimes, or other violations relevant to dealer operations.
• Zoning certification from the appropriate local authority confirming the location complies with local ordinances.
• Location information, including a property lease with a term of at least six months, a valid business license, and zoning documentation.
• Application for dealer plates and payment of applicable plate fees, if requesting dealer plates.

Additionally, you must enclose visual documentation that includes images or diagrams of the following:

• Designated vehicle display area
• Property site
• Office building, both inside and out
• Office interior
• All interior furnishings and equipment
• Site layout marking the position of the sign
• Signage bearing the registered business name

7. Submit Your Dealer Application

Dealer license applications are submitted electronically through the MyMVD Partner Portal. Applicants must create an account to complete the online application, upload required documentation, and pay applicable fees by credit card or electronic check.

Processing times vary based on application volume and whether additional documentation or corrections are required. Submitting a complete and accurate application can help avoid delays.

Renew Your New Mexico Vehicle Dealer License 

New Mexico dealer licenses expire on March 31 each year and must be renewed annually to remain valid. Renewals are processed through the MyMVD Partner Portal. Dealers must log in to submit the following:

• Proof of compliance with local business licensing requirements, if applicable
• $50 renewal fee, payable by electronic check or credit card
• Updated or newly issued franchise agreements (required for new motor vehicle dealers)
• Continuing education certificate, required annually for used vehicle dealers (effective July 1, 2019)
• Bond documentation, such as proof of payment, a rider, or a new bond

Important Update for New Mexico Auto Dealers

Senate Bill 2, enacted during the 2026 legislative session, establishes an annual registration surcharge for electric and plug-in hybrid vehicles beginning in 2027. Fully electric vehicles will be subject to a $70 surcharge in 2027, $80 in 2028, and $90 starting in 2029. Plug-in hybrid vehicles will be subject to $35 in 2027, $40 in 2028, and $45 beginning in 2029.

Dealers should be aware of these additional fees when discussing vehicle registration costs and overall ownership expenses with customers.

FAQs 

Does a dealer need a new license to add a location?

Yes. Dealers must apply for a supplemental license through the Motor Vehicle Division before opening an additional location, and they must already operate a properly licensed primary site.

Who is allowed to sell vehicles without a dealer license in New Mexico?

Certain individuals and entities are exempt from dealer licensing requirements, including court-appointed representatives (such as executors, guardians, or receivers) and financial institutions or lienholders selling repossessed vehicles.

Do dealers need a special permit to sell at off-site events?

Yes. Licensed New Mexico dealers must obtain an off-site permit from the Motor Vehicle Division before selling at a temporary location. The dealer must invite other licensed dealers in the county (excluding motorcycle dealers) to participate for the full duration of the event and may not charge them more than a reasonable share of the event’s costs. Dealers must also ensure their surety bond covers the off-site sale, either through a rider or appropriate bond documentation.

What happens if my dealer license expires?

A current license is required to operate as a dealer legally, so once it expires, you are no longer allowed to conduct business.

Can you get a New Mexico auto dealer license without a lot?

No. Dealers must operate from a properly zoned commercial location that meets Motor Vehicle Division requirements, including a permanent office, posted business hours, signage displaying the registered business name, and designated vehicle display space. Residential or virtual offices do not qualify. Applicants must also provide proof of ownership or a lease (minimum six months), along with zoning approval and required photos.