How much does a $10,000 used car dealer bond cost in New Jersey?
A $10,000 used car dealer bond in New Jersey costs as little as $100 for qualified applicants. However, the exact cost of the bond is determined by an underwriter who will review the applicant’s credit, relevant experience, etc. Apply for your free, no obligation quote from SuretyBonds.com and find out how much you can save on your New Jersey used auto dealer bond today!
|Bond Type||Bond Amount||Cost*|
|$10,000 Used Motor Vehicle Dealer Bond||$10,000||Starts at $100||Apply Now|
Why do New Jersey used car dealers need a surety bond?
New Jersey used car dealers are required by the Motor Vehicle Commission to have a $10,000 bond prior to receiving a license.
Used motor dealer bonds ensure that the principal (used motor vehicle dealer) complies with all laws concerning the sale of used vehicles. Principals must also adhere to all rules and regulations established by N.J.A.C. 13:21-15.1 as they pertain to automobile dealers. If a principal violates the terms of the bond agreement and consumers suffer financial losses, the surety will compensate the harmed parties up to the full $10,000 bond amount. The principal is then ultimately responsible for reimbursing the surety for any claims paid out.
Fill out our online bond request form to get bonded! Our team of auto dealer bond experts is here to help you get the bond you need quickly, easily and accurately.
The bond must be written to coincide with the dealer’s license period, and, although the bond is required for as long as the dealership wishes to conduct business in the state of New Jersey, the surety reserves the right to cancel the bond at any point during the term by providing the Commission with 30 days’ written notice.
How to get a used vehicle dealer license in New Jersey
To get a used vehicle dealer license in New Jersey, applicants must demonstrate to the Commission they meet the following requirements:
- Proof the applicant has established a permanent place of business
- Keep a display space the fits at least two vehicles
- Signage on the exterior of the building or on the property
The applicant must also submit the following materials to be eligible for a license:
- Copy of filing certificate for DBA
- Photographs of the premises and required signage
- Owners, officers, members, parterns must submit a copy of their driver’s license and a color, passport-style photograph
- Out-of-state Corporations and LLCs must submit a copy of their certificate of authority from the Department of Treasury
- 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
Finally, the applicant may submit their application along with any additional materials, such as their certificate of insurance and surety bond. The applicant is also required to pay a $100 licensing fee, plus an additional fee based on the number of license plates they need. Additional questions may be directed to the Business Licensing Services Bureau by calling (609) 292-6500 ext. 5014.