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How much does a motor vehicle dealer bond cost in New Jersey?
New Jersey used motor vehicle dealer bond costs start at $100 annually. Your exact premium will be provided after a quick application review. State law requires these bonds expire annually on March 31st, so your personal premium will be based on when you purchase your bond.
Apply now to get your free MVD bond quote!
How do you get a New Jersey auto dealer bond?
You can apply for your free New Jersey auto dealer bond quote online 24/7. You'll need to provide the following information for New Jersey Motor Vehicle Commission approval.
- dealer or dealership business name
- physical dealership location address
- dealer license number, if available
Once you've paid your invoice, your official vehicle dealer bond will be emailed to you.
How fast can I get a used vehicle dealer bond?
Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver official New Jersey used motor vehicle dealer bonds faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed bond delivery.
If you have any questions about the New Jersey auto dealer bond or your application, call 1 (800) 308-4358 to speak with one of our friendly surety experts. We're here to guide you through the motor vehicle dealer bond process so you can get back to running your business.
What is the purpose of the New Jersey auto dealer bond?
New Jersey Administrative Code 13:45A-26F.5 requires individuals who sell used vehicles in the state file a $10,000 surety bond as part of their car dealer license application. This bond requires the licensed used motor vehicle dealer to comply with all state rules that regulate used vehicles sales as established by New Jersey Administrative Code 13:21-15.1.
Why do New Jersey used car dealers need a surety bond?
The New Jersey used motor vehicle dealer bond protects consumers from dealership fraud. By filing a car dealer bond, individuals agree to operate their dealership according to New Jersey code. If an auto dealer fails to do so, harmed individuals can file a claim against the bond to recover financial losses. The surety company will pay valid claims up to the full $10,000 bond amount, which the bonded auto dealer must then reimburse.
Who are the parties involved in a New Jersey auto dealer bond?
By requiring the MVD bond for auto dealer licensing, the New Jersey Motor Vehicle Commission is its “obligee.” By purchasing and filing the bond, a dealer or dealership is its “principal.” By issuing and backing the bond's guaranteed obligations, the insurance company is its “surety.”
How do I update my vehicle dealer bond form?
If the New Jersey Motor Vehicle Commission requires your surety bond documentation to be updated for any reason, contact your surety provider. If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change.
The most common changes for these bonds include updating the dealer or dealership's name and address.
How do you renew your New Jersey auto dealer bond?
New Jersey auto dealer bonds expire annually on March 31st and must be renewed before their expiration. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be emailed to you to keep your bond active for your next auto dealer license term.
How do auto dealers apply for a license in New Jersey?
Before applying for a used motor vehicle dealer license, you must meet the following requirements.
- Maintain an established business location
- Keep a display space that fits at least 2 vehicles
- Display signage on the exterior of your business location building or on the property
Then you'll submit these required materials with your auto dealer license application.
- Completed Application for Business License with all required documents
- Fictitious name/DBA filing certificate copy
- Photos of your physical business location, including required signage
- Driver’s license copy and a passport-style color photograph for all owners, officers, members, and partners
- Certificate of authority copy from the U.S. Department of the Treasury (out-of-state corporations and LLCs only)
- Copies of the NJ Sales Tax Certificate of Authority, deed, lease, or purchase agreement for the location of the dealership, and the telephone bill for the dealership's landline
- Proof the dealership has obtained a federal taxpayer identification number from the IRS
The state might also require supplemental application documentation such as proof of current child support, signature card forms, and a fingerprint request notification form.
After the preliminary licensing requirements have been approved, the following must be submitted to the Motor Vehicle Commission.
- Registration fee
- Used motor vehicle dealer surety bond
- Certificate of liability insurance
- $100 licensing fee, plus an additional fee based on the number of dealer plates needed