How to Get a NJ Dealer License
To sell either new or used vehicles in New Jersey, you will need to get a dealer license from the New Jersey Motor Vehicle Commission.
The licensing process for dealer license applicants in New Jersey is fairly straightforward. You will need to complete and submit the application forms, pay the respective fees, and once you are pre-approved, provide insurance and a New Jersey auto dealer bond.
For a detailed breakdown of the licensing process, read on!
NJ Dealer License Requirements
Regardless of the type of vehicles you wish to sell in New Jersey, you will need to apply for a license. The license application process begins by covering the pre-licensing requirements which include:
- Having a place of business and providing evidence thereof
- Ensuring you have a display space with a minimum of two vehicle slots
- Installing a permanent exterior business sign in accordance with local requirements
Once you have covered the qualification criteria, you can proceed with downloading, completing and submitting your dealer license application form.
Dealer License Application and Supporting Documents
Used and new car dealers go through the same license application process. Begin by downloading the application form. The form includes further instructions and a checklist to help you keep track of the required documentation, so make sure to review the whole document.
The form itself includes the following sections:
- A license application form
- A supplemental application form which you need to complete for every owner, partner, member or corporate officers of the dealership
- A child support certification form to be completed for the same parties
- A fingerprint request notification form
- A dealer certification of licensed location type and proper walls form
- A dealer business hours form
- An MVC dealer certification / signature card form
Along with completing all of the above sections, you will be required to include the following documents when you mail your application to the NJ Motor Vehicle Commission:
- A copy of the driver’s licenses of all individuals participating in the application
- A passport size color photograph of all of the above with each individual’s name on the reverse side of the photograph
- A copy of the incorporation/formation papers that also features the date of filing with the New Jersey Division of Revenue
- A copy of the property deed, lease or purchase agreement
- A copy of your federal Employer Identification Number (EIN) registration certificate
- A copy of your New Jersey certificate of authority for sales tax
- A copy of the telephone bill for landline or installation order for the dealership
- A listing of all authorized signatories
- Records verifying employment status of all employees
- Photographs of premises and business signs
- Copy of plans of premises
- Certification that authorized signatories have not been convicted of fraud or misrepresentation previously
- If applicable – a copy of an alternate/fictitious name filing certificate
When you have completed your application form and collected all the necessary documents, mail all of these to the Motor Vehicle Commission at:
Motor Vehicle Commission
Business Licensing Services Bureau
Dealer Licensing Unit
P.O. Box 171
225 East State Street
Trenton, NJ 08666-0171
Preliminary License Approval – Surety Bond, Insurance and Fees
As soon as your application has been received and reviewed by the Commission, you can expect to receive a preliminary license approval. Upon receiving approval you will need to obtain an insurance certificate and a surety bond in order to complete your application.
Your original certificate of liability insurance needs to be in the following amounts:
- $100,000 per person/incident up to $250,000 per incident for bodily injury or death
- $25,000 per incident for property damage
- $250,000 combined personal injury and property damage per incident covering all dealer plates
The NJ MVC-Dealer Unit must be listed as the certificate holder of the liability insurance.
The auto dealer bond you need to obtain from a surety bond agency needs to be in the amount of $10,000. Read more about the bond requirement in the section below!
Finally, in order to complete the application process, you will need to pay a $100 license fee and a $257.50 registration fee.
As soon as you submit these last two items and pay all applicable fees, you can expect to receive your dealer license from the Commission by mail.
NJ dealer licenses are valid for one year and expire on March 31 every year. The Motor Vehicle Commission mails renewal papers to license holders about 60 days prior to the expiration date. Note that when renewing your license, you will also need to renew your bond.
NJ Auto Dealer Bond Requirement
The $10,000 amount of the dealer bond is not the same as the cost of the bond! The cost of your bond is a fraction of the full amount and depends on your credit score (most importantly) as well as on your financial statements and other financial information you provide the surety with.
Typically, applicants who have a high credit score are provided with a low rate on their bond, sometimes as low as 1% of the total amount. To get an exact quote on your bond, simply complete and submit our surety bond application form, and we will contact you with a FREE quote along with further instructions how to finalize your bond application.
If you have any additional questions, call us at 877.514.5146 or contact us by email!
Latest posts by Victor J. Lance, President/Owner (see all)
- How to Get a Money Transmitter License in California - September 18, 2018
- How to Get a Money Transmitter License in New York - September 13, 2018
- Colorado Amends Bond Requirement for Private Occupational Schools and Private Degree-granting Schools - September 13, 2018