New York, NY Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- Licensing agency
- NYC Dept. of Consumer and Worker Protection
- Bond (general license)
- $1,000 surety bond required
- Biennial fee
- $340 general; $600 secondhand-auto license
- Purchase-hours ban
- No buying from 12:00 a.m. to 6:00 a.m.
- Resale hold period
- 15 days before resale of most items
- Open-lot fencing
- 6-ft opaque fence required on street sides
- First misdemeanor fine
- At least $500, or $1,000 on repeat
Summary
New York City requires anyone who buys, sells, melts or refines second-hand articles, old gold, silver or platinum, pawnbroker tickets, or used electronics to hold a Department of Consumer and Worker Protection license under Administrative Code Section 20-265. There are two license types: a general secondhand dealer license and a separate secondhand automobile dealer license, each running the license period set by Section 20-266.
a. It shall be unlawful for any person to act as a dealer in second-hand articles without a license therefor.
b. There shall be the following types of licenses: A general license which shall authorize the licensee to act as a secondhand dealer with respect to all articles other than secondhand automobiles, within the city during the license period specified in section 20-266 of this subchapter. A secondhand automobile dealer's license which shall authorize the licensee to act as a secondhand dealer with respect to secondhand automobiles within the city during the license period specified in section 20-266 of this subchapter.
Full Breakdown
Administrative Code Section 20-264 defines a "dealer in second-hand articles" broadly: anyone who buys or sells used goods, takes them as trade-ins, deals in used gold, silver or platinum items, melts precious metals, trades pawnbroker tickets, or deals in used electrical appliances and electronics. Pianos, books, artwork and first sales of imported second-hand goods are exempt. Section 20-265 makes operating without the matching license unlawful; a general license covers everything except secondhand automobiles, which need their own secondhand automobile dealer's license. Section 20-266 sets a $1,000 surety bond for the general license, biennial fees of $340 (general) or $600 (automobile), and mandatory fingerprinting of the sole proprietor, general partners, or officers and 10%-plus shareholders for a criminal-history check through the state Division of Criminal Justice Services.
m. Most purchased items must be held 15 days before resale, refining or melting, and a dealer cannot also hold a pawnbroker license or display any sign resembling a pawnbroker's. Open storage lots (for junk dealers and secondhand dealers alike, other than used-car display lots) must be enclosed on every street-facing side by a sheet-metal or wood fence at least six feet high that blocks public view, with only one advertising sign up to 24 feet by 6 feet allowed per adjoining street.
Violations & Fines
Under Section 20-275, violating any provision of this subchapter or its rules is a class A misdemeanor: at least $500 on a first conviction, and $1,000 and/or 15 days in jail on any later conviction. Separately, the Department of Consumer and Worker Protection can issue civil penalties of $175 for a first violation, $300 for a second, and $500 for a third or later violation, though a first-time signage or pricing violation under Section 20-270 or 20-271 can be excused if cured within 30 days. A secondhand automobile dealer license can be suspended or revoked at the commissioner's discretion, and must be revoked after a third violation of the automobile-sale rules within three years.
Frequently Asked Questions
Who counts as a "dealer in second-hand articles" in NYC?
Can a licensed secondhand dealer also operate as a pawnbroker?
How long must a secondhand dealer hold purchased goods before reselling?
What happens if someone operates as a secondhand dealer without a license?
Sources & Official References
Other rules in New York
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