New Jersey Motor Vehicle Dealer Bond

In New Jersey, the licensing requirements for motor vehicle dealers are primarily governed by N.J.S.A. 39:10-19. This statute stipulates that individuals or entities must obtain proper authorization to engage in the business of buying, selling, or dealing in motor vehicles within the state. It outlines the eligibility criteria, term, and associated fees for obtaining a dealer's license.

• Instant Issue: Your bond is approved, issued, and can be emailed to you within minutes—no delays.
• Affordable Price: Only $100 for up to 1 year. These bonds all commonly expire on 3/31 of every year.
• Easy Online Order: Simply provide your information, pay online, and receive your bond within 1 business hour.

Motor Vehicle Dealer Bonds are required by the New Jersey Division of Motor Vehicles (DMV) to ensure compliance with state regulations. These bonds protect consumers from fraudulent practices by covering losses caused by dealers who fail to meet the terms of a vehicle sales contract. The required bond amount for New Jersey dealers is $10,000, with all bonds expiring on March 31st each year.

The New Jersey DMV mandates dealer bonds for both new and used motor vehicle dealerships. Whether you’re starting a new dealership or renewing your existing license, securing a Motor Vehicle Dealer Bond is an essential step in the licensing process.

How Much Does a New Jersey Used Motor Vehicle Dealer Bond Cost?

Every applicant qualifies for a flat rate of just $100 for the required $10,000 bond. No credit check or underwriting is necessary, ensuring a quick and hassle-free process.

To obtain a new or used car dealership or long-term leasing license in New Jersey, applicants must meet several qualifications and requirements. Below is a breakdown of these prerequisites:

• Business Location: Must provide evidence of an established place of business, including an office with a desk, chair, landline telephone, and a secure safe for storing motor vehicle documents. The office size must be at least 8 x 9 square feet.
• Display Space: Dealer licenses require display space for at least two vehicles, though this is not necessary for leasing licenses.
• Signage: A permanent, exterior sign with lettering visible from the roadway must be affixed to the land or building in accordance with local ordinances (not required for leasing).
• Franchise Agreement: New car dealers must provide a franchise agreement from the manufacturer as part of the application.
• Required Documentation: Applicants must submit:
  • Alternate/fictitious name filing certificate
  • Formation papers or corporate resolution
  • Driver’s license for owners/officers/members/partners
  • Certificate of authority from the Department of Treasury (for out-of-state corporations and LLCs)
  • New Jersey Sales Tax Certificate of Authority
  • Proof of federal taxpayer identification number from the IRS
  • Deed, lease, or purchase agreement for the premises to be licensed
  • Telephone bill for the business landline
• Application Process: The initial and supplementary applications must be completed and signed by the owner, partners, members, or corporate officers. Supplementary documents include:
  • Child support verification
  • MVC Dealer Certification/Signature Card
  • Fingerprint request form
  • Business hours of operation
  • Dealer certification of location and wall type
  Local municipal approval is also required.
• Insurance and Bonding: A Certificate of Insurance with liability coverage between $100,000 and $250,000 for bodily injury and $25,000 for property damage must be provided. The insurance certificate should be addressed to:
  NJMVC – Business Licensing Services Bureau, Dealer Unit, P.O. BOX 170, Trenton, NJ 08666.
  A $10,000 Surety Bond is required, matching the business name and address with an expiration date aligned with the licensing year.

• Obligee: New Jersey Division of Motor Vehicles
• Bond Amount: $10,000
• Bond Premium: $100 for up to 1 year
• Renewal Requirement: A Renewal/Continuation Certificate is required each year before March 31st.

For more information about motor vehicle dealer licenses and bonding requirements, visit the New Jersey Motor Vehicle Commission (DMV).