New Jersey Auto Dealer Bond

1. Apply for Your Bond

We make it easy to get your auto dealer bond. Simply use our online application form and we can process your request as soon as possible.

We recently helped Michael, a new motor vehicle dealer in Trenton, get his bond. With a bad credit score, he was uncertain about qualifying for the required bond. Michael applied online and quickly received a quote after paying the bond premium online, he received the bond by email. and was pleasantly surprised that bonding was so simple and fast.

2. Get Your Quote

Our surety bond company consistently delivers quick quotes to applicants. Most customers receive an instant quote after submitting their online application. For more complex cases, we provide a quote within 48 hours. We always guarantee that you’re getting the best quote possible, no matter what.

3. Pay Your Bond Premium

Once you pay the premium, we’ll send you your bond. If requested, we can also mail a hard copy. 

If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – contact us or call us at (877) 514-5146.

All auto dealers must carry a $10,000 bond to do business in favor of the State of New Jersey. This includes new and used vehicle dealers and leasing companies. The bond must be executed by a surety company authorized to transact business in the state and must not expire until March 31st of the year your license is set to expire. The obligee is the New Jersey Motor Vehicle Commission. 

All motor vehicle dealer licenses expire on March 31st of each year, regardless of when you receive your license. To renew, you must simply resubmit your documents with any updated information. You must also renew your bond each year.

We will send out reminders well in advance of your renewal date. Since bonding is so quick and easy, you should never have to worry about missing the renewal date because you don’t have a surety bond.

To ensure that your license renewal goes smoothly, the Motor Vehicle Commission recommends submitting the paperwork by March 1st each year. If you wait until the deadline, your application may not go through in time, forcing you to start over with a new license.

The primary reason to carry a surety bond is to allow customers to file a claim in case of fraudulent sales practices. However, as a motor vehicle dealer, you may not be aware of any issues with a car before it’s sold to the customer.

If someone does file a claim against your surety bond, the process happens as follows:

• First, they file with the surety company directly. 
• The surety investigates the claim to determine its validity. 
• If the claim is valid, the surety company will pay damages up to the full bond amount. 
• Afterward, you are responsible for reimbursing the surety for any payments made to the customer.

Knowing how to get a New Jersey auto dealer license makes the whole process faster and easier. Broadly speaking, you have to do the following: 

• Provide proof of your business location, including that you have space to sell vehicles. 
• Prove you have sufficient signage for your business location. 
• Submit various documents, including your IRS tax ID, New Jersey Sales Tax Certificate, and business entity paperwork. 
• Get liability insurance for at least $100,000 to $250,000 for bodily injury and $25,000 for property damage. 
• Get a $10,000 surety bond. 

Mail the vehicle dealer licensing documents to:

New Jersey Motor Vehicle Commission
Business Licensing Services Bureau
P.O. Box 170
225 East State Street
Trenton, NJ 08666-0170