The New Jersey Motor Vehicle Dealer License is a permit issued by the New Jersey Motor Vehicle Commission (MVC) that authorizes individuals or businesses to sell or lease motor vehicles in New Jersey. It is a legal requirement for anyone who wants to operate as a motor vehicle dealer in the state. In this article, we will first describe who needs this license, then how to get the license, and finally, how to renew the license.
In New Jersey, individuals or businesses that engage in the sale or lease of more than four motor vehicles per year are required to hold a New Jersey Motor Vehicle Dealer License. This requirement applies to both new and used vehicle dealers. The license is necessary regardless of whether the business operates out of a physical location, such as a dealership lot, or conducts sales exclusively online.
Certain types of businesses may be exempt from needing a license. For example, manufacturers, finance companies, and certain governmental entities are exempt from the dealer license requirement.
There are four types of dealer licenses in the state of New Jersey:
The process of getting the new and used car dealership, leasing, and boat dealership licenses are the same. To obtain one or more of these four licenses, follow the steps below.
A new and used car dealership license is for individuals or businesses who wish to buy, sell, or exchange new AND/OR used cars in New Jersey. With this license, you are allowed to sell ONLY new vehicles, but also have the option to sell used vehicles.
A used car dealership license is for individuals or businesses who wish to buy, sell, or exchange ONLY used cars in New Jersey.
A leasing dealership license is for individuals or businesses that offer motor vehicles for lease.
A boat dealership license is for individuals or businesses that wish to buy, sell, or exchange new and used boats.
The second step is to establish your place of business. The state of New Jersey has the following criteria for what is a valid "business location":
The third step is to obtain a franchise agreement from your manufacturer. This step is only applicable to those seeking a new car dealership license.
A manufacturer franchise agreement is a contract between the dealer and manufacturer that allows the dealer to sell the motor vehicles using the manufacturer's name and trademark. For example, your dealership would need a franchise agreement with Toyota if you wanted to sell Toyota vehicles.
Before applying for a license, you must ensure you have registered your business with the state of New Jersey.
While there are a variety of business types, there are two main ways you can register your business.
The first is for for-profit corporations, non-profit corporations, limited partnerships, limited liability companies (LLC), and limited liability partnerships (LLP). All of these businesses must complete the following steps to register:
The second is for general partnerships, proprietorships, or self-employed individuals. If this is your business type, follow the instructions below:
After successfully filing all the necessary forms, you will obtain a Business Registration Certificate (BRC).
The next step is to ensure you have all your required documentation ready for submission. We have listed below all the documents that need to be submitted alongside your license application:
The next step is to fill out the New Jersey dealer license application. The application requests the following information:
You can find the car dealership and boat dealership applications on the New Jersey Motor Vehicle Commission website.
Some supplementary applications are required, including but not limited to the following:
The seventh step is to fill out the Municipal Approval Certificate for Business License form. This form indicates that your business follows the local zoning and municipal laws of the jurisdiction your business is operating in. As part of the approval process, your business must pass an in-person screening conducted by a Zoning Official/Municipal Representative. Contact your local government office to schedule an appointment.
The next step is to obtain insurance. Liability coverage is required in the amount of $100,000 to $250,000 for bodily injury and $25,000 for property damage. After you obtain your coverage, you must fill out a Certificate of Insurance. The certificate should specify the total number of dealer plates covered in the insurance policy and should read:
New Jersey requires a $10,000 motor vehicle dealer bond to obtain your dealer license.
Motor vehicle dealer bonds, also known as auto dealer bonds, are essential prerequisites to ensure that auto dealers meet their legal responsibilities to the state of New Jersey and uphold their professional duties towards their customers. These bonds act as a form of financial security for individuals engaging with motor vehicle dealers. For instance, if a dealer were to sell a car without a valid title, the consumer would have the right to file a claim against the dealer's auto dealer bond to seek compensation.
SuretyNow offers a convenient solution for obtaining your New Jersey motor vehicle dealer bond. The process is simple. Fill out our 3-minute form, and we'll start looking around to get you the best quote. We usually get back to our customers within the hour with quotes during work hours. We will mail you a copy of the bond once you're satisfied with the price and successfully pay. You can then include the bond in your licensing application.
The next is to submit your application and required documents.
To submit your application, mail it to the following address:
New Jersey Motor Vehicle Commission
Business Licensing Services Bureau
PO Box 170
225 East State Street
Trenton, NJ 08666-0170
Important note: Do not provide proof of insurance and surety bond until you receive the Approval Notice via email or mail.
Once you've submitted your initial license application, you will receive the Fingerprint Request Notification form via email or mail. After completing this form, make an appointment to get fingerprinted through this website or call (877) 503-5981. Your completed form MUST be present at the appointment.
After your appointment, the fingerprinting agency will send your fingerprints to the New Jersey MVC. Within three days after your appointment, submit your Fingerprint Request Notification form in one of the following ways:
Fax: Fax the form to (609) 341-2732
Mail:
New Jersey Motor Vehicle Commission
Project Manager, DOSP
Business and Government Services
PO Box 122
225 East State Street
Trenton, NJ 08666-0122
The final step is to pay all applicable fees and pass a site inspection. After submitting your application, you will be asked to pay all applicable fees and proof of insurance and bond.
The fee for a wall license is $100, and a set of five dealer license plates is $257.50. The total dealer registration fee is $77.
You will also be notified of a site inspection of your business location. If you pass your site inspection and your application is approved, you will receive your New Jersey motor vehicle dealer license in the mail.
New Jersey dealer licenses are valid for one year and expire every year on the 31st of March. The New Jersey MVC mails renewal applications and required documents to license holders 60 days before expiration date. To renew your license, you must fill out the same license application. It's important to note that you must also renew your surety bond.
