1. Choose the right auto dealer license type
In order to obtain a New Jersey dealer license, you have to apply with the Motor Vehicle Commission. It provides the following types of licenses:
- New & Used Motor Vehicle Dealer
- Used Motor Vehicle Dealer
- Moped Dealer
- Auto Body Repair Facility
- Fleet Inspection Facility
- Private Inspection Facility
- Leasing Company
- Driving School
2. Get to know the NJ dealer license requirements
Regardless of the type of vehicles you wish to sell, you will need to apply for a license and fulfill the relevant requirements. NJ auto dealers have to provide the following:
- Personal information in the supplemental application form for every owner, partner, member or corporate officers of the dealership
- Child support certification form for every owner, partner, member or corporate officers
- Copies of the driver’s licenses of all individuals participating in the application
- Passport size color photographs of all of the above with each individual’s name on the reverse side of the photograph
- A listing of all authorized signatories
- Records verifying employment status of all employees
- Dealer certification of licensed location type and proper walls form – proof of place of business, display space with a minimum of two vehicle slots and business sign
- Photographs of premises and business signs
- Copy of plans of premises
- Copy of the property deed, lease or purchase agreement
- Copy of the telephone bill for landline or installation order for the dealership
- Fingerprint request notification form
- Business hours form
- MVC dealer certification / signature card form
- Liability insurance – $100,000 per person/incident up to $250,000 per incident for bodily injury or death, $25,000 per incident for property damage, and $250,000 combined personal injury and property damage per incident covering all dealer plates
- $10,000 surety bond
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3. Prepare your paperwork
NJ used car dealer license and new car dealer license applicants have to go through the same licensing 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.
Along with completing the form and preparing the documents from the section above, you also have to obtain the following paperwork from other authorities:
- Incorporation/formation papers with the date of filing from the NJ Division of Revenue
- Employer Identification Number (EIN) from the IRS
- Certificate of authority for sales tax from the NJ Division of Taxes
- Certification that authorized signatories have not been convicted of fraud or misrepresentation previously from the NJ State Police
- Alternate/fictitious name filing certificate (if applicable) from the NJ Department of Treasury
4. Obtain the necessary New Jersey auto dealer bond
All applicants for a NJ dealer license have to obtain a surety bond. It guarantees their legal compliance and thus protects the interests of the state and of their customers.
The required amount for New Jersey auto dealer bonds is currently $10,000. The cost of your bond, however, is a fraction of the full amount. It depends on your credit score, as well as on your business financial statements and fixed and liquid assets. .Typically, applicants who have stable finances get lower rates – between 0.75% and 5%.
Apply for a free no-obligations quote on your auto dealer bond!
5. Apply with your full document set
When you have completed the NJ dealer license application form and collected all the necessary documents, mail them 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
As soon as your application has been reviewed by the Commission, you can expect to receive a preliminary license approval. Then you will need to obtain the insurance certificate and the surety bond in order to complete your application.
Finally, in order to complete the application process, you will need to pay a $100 license fee and a $257.50 registration fee.
Once you submit these last two items and pay all applicable fees, you can expect to receive your New Jersey dealer license from the Commission by mail.
6. Renew your New Jersey dealer license yearly
NJ car dealer licenses are valid for one year and expire on March 31st 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.
Need further information about getting your New Jersey auto dealer license and bonding? You can reach us by calling at 877.514.5146.