Licensing of Dealers and Wreckers

NMSA 1978 ch. 66, art. 4

in effect

NMSA 1978, § 66-4-1 Dealers, wholesalers and distributors of vehicles and title service companies must be licensed; presumption of conducting business

66-4-1. Dealers, wholesalers and distributors of vehicles and title service companies must be licensed; presumption of conducting business A. A person, unless licensed to do so by the department, shall not carry on or conduct the active trade or business of: (1) a dealer in motor vehicles of a type subject to registration pursuant to the Motor Vehicle Code, including: (a) trailers, but not trailers sold as kits; (b) recreational vehicles designed to be towed; (c) motorcycles over fifty-five cubic centimeters; and (d) off-highway motor vehicles pursuant to the Off-Highway Motor Vehicle Act [66-3-1001 to 66-3-1016 and 66-3-1017 to 66-3-1020 NMSA 1978]; (2) wholesaling of vehicles. Any person who sells or offers for sale vehicles of a type subject to registration in this state, to a vehicle dealer licensed pursuant to the Motor Vehicle Code or who is franchised by a manufacturer, distributor or vehicle dealer to sell or promote the sale of vehicles dealt in by such manufacturer, distributor or vehicle dealer shall be presumed to be conducting the business of wholesaling; (3) distributing of vehicles. Any person who distributes or sells new or used motor vehicles to dealers and who is not a manufacturer shall be presumed to be conducting the business of distributing vehicles; or (4) a title service company. Any person who for consideration prepares or submits applications for the registration of or title to vehicles shall be presumed to be engaging in the business of a title service company. B. Application for a dealer, wholesaler, distributor or title service company license shall be made upon the form prescribed by the department and shall contain the name and address of the applicant and, when the applicant is a partnership, the name and address of each partner or, when the applicant is a corporation, the names of the principal officers of the corporation and the state in which incorporated and the place where the business is to be conducted and the nature of the business and such other information as may be required by the department. Every application shall be verified by the oath or affirmation of the applicant, if an individual, or, in the event an applicant is a partnership or corporation, by a partner or officer of the partnership or corporation. Every application shall be accompanied by the fee required by law. C. To ensure that a dealer, wholesaler, distributor or title service company complies with this section, the secretary may apply to a district court of this state to have a person operating without a license as required by this section or operating without the bond required by Section 66-4-7 NMSA 1978 enjoined from engaging in business until that person complies with the requirements of licensing as provided by this section and the bonding requirements of Section 66-4-7 NMSA 1978. 1953 Comp., § 64-4-1, enacted by Laws 1978, ch. 35, § 214; 1981, ch. 361, § 18; 1989, ch. 318, § 12; 1998, ch. 48, § 12; 1999, ch. 122, § 2; 2003, ch. 410, § 1; 2005, ch. 324, § 12; 2005, ch. 325, § 23.

NMSA 1978, § 66-4-1.1 Auto recycler license; presumption of conducting business

66-4-1.1. Auto recycler license; presumption of conducting business A. A person desiring to engage in the business of wrecking or dismantling vehicles for the purpose of reselling parts or scrap material shall apply to the department for an auto recycler license. A person possessing three or more wrecked, dismantled or partially wrecked or dismantled vehicles who regularly sells or offers for sale used vehicle parts or vehicle scrap material within the period of one year shall be presumed to be conducting business as an auto recycler. B. An auto recycler licensee shall not sell motor vehicles of a type subject to registration pursuant to the Motor Vehicle Code [66-1-1 NMSA 1978]. C. Application for an auto recycler license shall be made upon the form prescribed by the department and shall contain the name and address of the applicant and, when the applicant is a partnership, the name and address of each partner or, when the applicant is a corporation, the names of the principal officers of the corporation and the state in which incorporated and the place where the business is to be conducted and the nature of the business and such other information as may be required by the department. Every application shall be verified by the oath or affirmation of the applicant, if an individual, or, in the event an applicant is a partnership or corporation, by a partner or officer of the partnership or corporation. Every application shall be accompanied by the fee required by law. D. To ensure that an auto recycler complies with this section, the secretary may apply to a district court of this state to have a person operating without a license as required by this section or operating without the bond required by Section 66-4-7 NMSA 1978 enjoined from engaging in business until that person complies with the requirements of licensing as provided by this section and the bonding requirements of Section 66-4-7 NMSA 1978. Laws 2005, ch. 324, § 13.

NMSA 1978, § 66-4-2 Department to issue license

66-4-2. Department to issue license A. Except for recreational vehicles, the department, upon receiving an initial nonfranchise dealership application accompanied by the required fee and when satisfied that the applicant has completed eight hours of education as approved by the department and complies with the laws of this state with reference to the registration of vehicles and certificates of title and the provisions of the Motor Vehicle Code, shall issue to the applicant a license that entitles the licensee to conduct the business of a dealer, auto recycler or title service company. The license may be renewed upon application, payment of the fee required by law and completion every year of four hours of continuing education as approved by the department. A licensee shall not lease, loan, transfer or sell its license to another person, and no person shall use the license of another person for any purpose. B. A dealer or auto recycler licensee, before moving any of the licensee's places of business or opening any additional place of business, shall apply to the department for and obtain a supplemental license for which no fee shall be charged. No supplemental license shall be issued to a dealer, other than a dealer in motorcycles only, for an additional place of business unless the business already has an established place of business. C. A person to whom the department has issued a license to conduct the business of a dealer in motorcycles only is also deemed a recycler of motorcycles without additional license. 1953 Comp., § 64-4-2, enacted by Laws 1978, ch. 35, § 215; 1991, ch. 196, § 1; 1999, ch. 122, § 3; 2005, ch. 15, § 1; 2005, ch. 324, § 14; 2007, ch. 318, § 1; 2007, ch. 319, § 40; 2012, ch. 59, § 1; 2019, ch. 216, § 1.

NMSA 1978, § 66-4-2.1 Recreational vehicle dealers; licensure; special events

66-4-2.1. Recreational vehicle dealers; licensure; special events A. A dealer, as defined in Section 66-1-4.4 NMSA 1978, shall apply to and be issued by the department a license to deal in recreational vehicles if the department finds the applicant is in compliance with department rules regarding registration of vehicles, certificates of title and all provisions of the Motor Vehicle Code [66-1-1 NMSA 1978]. Renewal of a license shall be according to rules of the department for a period of twelve months. B. The department shall issue a "special event" license to a licensed New Mexico recreational vehicle dealer to conduct business at a location other than the dealer's listed primary place of business, upon forms issued by the department, provided: (1) the special event is focused on the business of recreational vehicles as conducted at the applicant's primary place of business; (2) the location of the special event is an established place of business; and (3) the majority of recreational vehicle dealers in the county where the special event is to be held are notified, in a manner approved by the department, of the special event and offered the opportunity to participate and offer vehicles for sale under identical conditions established by and for the applicant and approved by the department. The applicant may charge other recreational vehicle dealers a participation fee sufficient to defray the actual expenses of the special event; or (4) if the special event is sponsored by a national recreational vehicle organization and the applicant is not licensed to do business in New Mexico, the application is accompanied by an application and a certified letter from that New Mexico licensed dealer committing to serve as host dealer to the out-of-state applicant. Laws 2005, ch. 15, § 2.

NMSA 1978, § 66-4-2.2 Off-site sales

66-4-2.2. Off-site sales A. Except as otherwise provided in this section, a New Mexico licensed dealer or the holder of a security interest filed pursuant to Section 66-3-201 NMSA 1978 shall not sell a vehicle or offer a motor vehicle for sale at a location other than the licensed dealer's established place of business, as defined in Section 66-1-4.5 NMSA 1978; provided that for purposes of this subsection, a vehicle shall not be deemed offered for sale at a location other than the licensed dealer's established place of business if the vehicle is in use for a purpose other than to sell or offer the vehicle for sale. B. A New Mexico licensed dealer, before offering a vehicle or vessel for sale at a temporary off-site location, shall apply to the department for and obtain an off-site permit. No off-site permit shall be issued to a New Mexico licensed dealer, other than a dealer in motorcycles only, for a temporary off-site location unless the dealer: (1) documents to the satisfaction of the department that the dealer has offered the majority of dealers, other than dealers in motorcycles only, in the county in which the proposed temporary off-site location would be located, the opportunity to offer vehicles or vessels for sale at the proposed temporary off-site location; provided that the offer shall be for sale of vehicles or vessels at all times during which the applicant proposes to sell vehicles or vessels and shall not be conditioned upon the payment of a fee by a dealer to whom the off-site permit is addressed that is greater than a fair share of the actual expenses; and (2) obtains either an original rider to the dealer's existing corporate surety bond or an original corporate surety bond in compliance with the provisions of Section 66-4-7 NMSA 1978 to cover the proposed temporary off-site location and dates of sale. C. All temporary off-site locations shall be identified by prominently displayed signs identifying the names of the New Mexico licensed dealers selling vehicles or vessels at the temporary off-site location and shall be of sufficient size or space to permit the safe display of the vehicles or vessels offered for sale. Laws 2007, ch. 319, § 41; 2023, ch. 137, § 2.

NMSA 1978, § 66-4-3 Refusal to issue license; cancellation or suspension of license or use of temporary permits; hearing; appeal

66-4-3. Refusal to issue license; cancellation or suspension of license or use of temporary permits; hearing; appeal A. The department may refuse to issue a license for just cause and may cancel or suspend a license or use of a temporary registration permit, demonstration permit or transport permit for violation of the Motor Vehicle Code. The action authorized in this section shall be taken only after a hearing before the administrative hearings office. Within ten days after completion of the hearing, the hearing officer designated to conduct the hearing shall cause to be served upon all parties, in the manner provided in Section 66-2-11 NMSA 1978, the hearing officer's findings and decision. The decision shall be: (1) granting a license or refusing to grant a license; (2) continuing a license, canceling a license or suspending a license for a time stated; or (3) continuing use of dealer plates and temporary registration permits, demonstration permits or transport permits, canceling dealer plates and temporary registration permits, demonstration permits or transport permits or suspending use of temporary registration permits, demonstration permits or transport permits for a time stated. B. A party aggrieved by the hearing officer's decision may file an appeal in the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. 1953 Comp., § 64-4-3, enacted by Laws 1978, ch. 35, § 216; 1998, ch. 55, § 77; 1999, ch. 265, § 78; 2007, ch. 319, § 42; 2015, ch. 73, § 29.

NMSA 1978, § 66-4-4 Criminal offender's character evaluation

66-4-4. Criminal offender's character evaluation The provisions of the Criminal Offender Employment Act [28-2-1 to 28-2-6 NMSA 1978] govern any consideration of criminal records required or permitted by Sections 66-4-1 through 66-4-9 NMSA 1978. 1953 Comp., § 64-4-4, enacted by Laws 1978, ch. 35, § 217; 1999, ch. 122, § 4.

NMSA 1978, § 66-4-5 Records of purchases, of sales and of vehicles dismantled

66-4-5. Records of purchases, of sales and of vehicles dismantled A. A dealer licensee shall maintain a record in a form prescribed by the department of every vehicle of a type subject to registration pursuant to the provisions of the Motor Vehicle Code [66-1-1 NMSA 1978] that is bought, sold or exchanged by the licensee or received by the licensee for sale or exchange. B. An auto recycler licensee shall maintain a record in a form prescribed by the department of: (1) every vehicle of a type subject to registration pursuant to the provisions of the Motor Vehicle Code that is bought, exchanged or received and dismantled or otherwise destroyed by the licensee; and (2) every motor vehicle body, chassis or engine that is sold or otherwise disposed of by the licensee. C. Every record required to be maintained pursuant to Subsection A or B of this section shall state the name and address of the person from whom the vehicle was purchased or acquired and the date of the purchase; the name and address of the person to whom the vehicle or the motor vehicle body, chassis or engine was sold or otherwise disposed of and the date of the sale or disposition; and a sufficient description of every vehicle or motor vehicle body, chassis or engine by name and identifying numbers sufficient to identify the vehicle or motor vehicle body, chassis or engine. D. A title service company licensee shall maintain a record of: (1) every temporary registration permit issued; (2) every title and registration application accepted for processing; and (3) any other information prescribed by the department. E. Every record required to be maintained pursuant to the provisions of this section shall be retained for a period of three years from the end of the year in which the record was created and shall be open to inspection by any peace officer or officer of the department during reasonable business hours. If the licensee fails to maintain the records required or to permit their inspection during reasonable business hours, the license becomes invalid. 1953 Comp., § 64-4-5, enacted by Laws 1978, ch. 35, § 218; 1999, ch. 122, § 5; 2005, ch. 324, § 15; 2007, ch. 319, § 43.

NMSA 1978, § 66-4-6 Place of business

66-4-6. Place of business A. No license shall be issued to a dealer or auto recycler unless an established place of business as defined in the Motor Vehicle Code [66-1-1 NMSA 1978] is maintained by the dealer or auto recycler. Each license to carry on or conduct the business of a dealer or auto recycler becomes invalid when the licensee fails to maintain an established place of business as defined in the Motor Vehicle Code. B. No license shall be issued to a title service company unless that company maintains a physical place of business accessible to the public and provides the department with the physical address of that place of business. A place of business shall be open to inspection by a peace officer or the department during reasonable business hours. The license of the title service company may be suspended or canceled if the title service company fails to maintain a place of business accessible to the public or does not allow inspection during reasonable business hours by a peace officer or the department. 1953 Comp., § 64-4-6, enacted by Laws 1978, ch. 35, § 219; 1999, ch. 122, § 6; 2005, ch. 324, § 16.

NMSA 1978, § 66-4-7 Dealers, wholesalers, distributors and auto recyclers; title service companies; dealers of motorcycles only; bond

66-4-7. Dealers, wholesalers, distributors and auto recyclers; title service companies; dealers of motorcycles only; bond A. Before issuance of any dealer's license, wholesaler's license, distributor's license, auto recycler's license or title service company license, the applicant shall procure and file with the department a corporate surety bond in the amount of fifty thousand dollars ($50,000). An applicant for a dealer's license for motorcycles only shall procure and file with the department a corporate surety bond in the amount of twelve thousand five hundred dollars ($12,500). The corporate surety shall be licensed by the public regulation commission or a successor entity to do business in this state as a surety and the form of the bond shall be approved by the attorney general. The bond shall be payable to the state for the use and benefit of the purchaser and the purchaser's vendees, conditioned upon payment of any loss, damage and expense sustained by the purchaser or the purchaser's vendees, or both, by reason of failure of the title of the vendor, by any fraudulent misrepresentations or by any breach of warranty as to freedom from liens on the motor vehicle or motorcycle sold by the dealer, wholesaler, distributor, dealer of motorcycles only or auto recycler. The bond shall be continuous in form and limited to the payment of fifty thousand dollars ($50,000) in total aggregate liability on a dealer's license, wholesaler's license, distributor's license, auto recycler's license or a title service company license and twelve thousand five hundred dollars ($12,500) on a dealer's license for motorcycles only. B. No applicant for a dealer's license, wholesaler's license, distributor's license or dealer's license for motorcycles only who files bond in the amount and form specified in Subsection A of this section shall be required to file any additional bond to conduct a business of wrecking or dismantling motor vehicles or motorcycles. Conversely, no applicant for an auto recycler's license who files bond in the amount and form specified in Subsection A of this section shall be required to file any additional bond to conduct a business of dealer, distributor, wholesaler or dealer of motorcycles only. C. In lieu of the bond required in this section, the dealer, wholesaler, distributor, auto recycler or dealer of motorcycles only may elect to file with the department the equivalent amount of cash or bonds of the United States or New Mexico or of any political subdivision of the state. D. The license of a dealer, wholesaler, distributor or auto recycler or of a title service company may be suspended or canceled if the dealer, wholesaler, distributor, auto recycler or title service company fails to have in effect the required bond or other security. 1953 Comp., § 64-4-7, enacted by Laws 1978, ch. 35, § 220; 1981, ch. 361, § 19; 1983, ch. 238, § 1; 1998, ch. 48, § 13; 1999, ch. 122, § 7; 2005, ch. 324, § 17.

NMSA 1978, § 66-4-9 Penalty for destroying or dismantling in violation of certain sections of the Motor Vehicle Code

66-4-9. Penalty for destroying or dismantling in violation of certain sections of the Motor Vehicle Code A. Any person violating any provision of Sections 66-3-119, 66-3-121, 66-3-123 through 66-3-125, 66-4-1 through 66-4-7 and 66-4-9 NMSA 1978 or Section 1 [66-4-10 NMSA 1978] of this 2018 act is guilty of a misdemeanor and shall be punished by a fine of three hundred dollars ($300) or by imprisonment for not less than thirty days or both. B. The penalty upon second conviction of such offense shall be that provided for a fourth degree felony. 1953 Comp., § 64-4-9, enacted by Laws 1978, ch. 35, § 222; 2018, ch. 75, § 7.

NMSA 1978, § 66-4-10 Auto recyclers; notification of purchase

66-4-10. Auto recyclers; notification of purchase A. Prior to taking actual possession of a vehicle that an auto recycler has purchased, the auto recycler shall verify with the department if the vehicle has been reported stolen by checking an electronic system maintained by the department. The auto recycler shall include the seller's name, address, contact information and unique auto recycling license number of the purchaser, unless the purchaser is not a licensed auto recycler, in which case the auto recycler shall include the unique number of the purchaser's government-issued identification document. B. Within two business days following the date the vehicle purchase transaction is completed, the auto recycler shall report the purchase to the department in an electronic format. C. The reporting requirements pursuant to Subsection B of this section shall include: (1) the name, address and contact information of the seller and the purchaser; (2) the unique auto recycling license number of the seller, unless the seller is not a licensed auto recycler, in which case the unique number of the seller's government-issued identification document; (3) the unique auto recycling license number of the purchaser, unless the purchaser is not a licensed auto recycler, in which case the unique number of the purchaser's government-issued identification document; (4) the make, model, year, vehicle identification number and, if available, current odometer reading of the vehicle; (5) the dates of the transfer of ownership of the vehicle; (6) a statement specifying if the vehicle was, or will be, crushed, disposed of or used for other purposes; and (7) a statement specifying if the vehicle is intended for export outside of the United States. D. The department shall maintain and make available to auto recyclers an electronic system that allows auto recyclers to verify, prior to taking actual possession of a vehicle that an auto recycler has purchased, that the vehicle has not been reported stolen. If the electronic system shows that the vehicle was reported stolen, the auto recycler shall not complete the transaction and shall notify a law enforcement agency of the current location of the vehicle and identification information provided by the person attempting to transfer ownership of the vehicle. If the electronic system shows that the vehicle was not reported stolen, the auto recycler may proceed with the transaction and shall not be held criminally or civilly liable if the vehicle was stolen, unless the auto recycler had knowledge that the vehicle was stolen. E. The department shall make information contained in the electronic system available, without charge and upon request, to any law enforcement agency or the department, when the person acting on behalf of the agency or department is acting within the course and scope of the agency's or department's duties. Except as authorized by this section, the department shall not release personally identifiable information received under this section. F. This section shall not apply to sales at salvage pools. Laws 2018, ch. 75, § 1.

Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18569/index.doFetched: 10/20/2026