How to get a used car dealer license in New Jersey
A practical walkthrough of the Used Motor Vehicle Dealer application — fees, bond, timeline, and what to expect at each step. Verified against the official agency as of June 2026.
Getting a Used Motor Vehicle Dealer used-car dealer license in New Jersey:
- Surety bond required
- $10,000
- Application fee
- $100 licensing fee
- License term
- Annual (licensing year)
- Typical timeline
- 4 – 8 weeks
- Typical first-year cost
- $600 – $1,500
This guide is informational and does not replace official New Jersey requirements. Always verify with the New Jersey Motor Vehicle Commission (MVC) before applying.
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Who can apply for a Used Motor Vehicle Dealer license
New Jersey requires a Used Motor Vehicle Dealer license to operate a dealership buying and selling used vehicles. It's issued by the New Jersey Motor Vehicle Commission (MVC) Business Licensing Services Bureau.
In New Jersey this is also commonly called an auto dealer license, car dealer license, or motor vehicle dealer license — all the same Used Motor Vehicle Dealer authority to sell used vehicles.
- An office of at least 72 square feet with a desk, chair, landline telephone, and a working safe for vehicle documents
- Display space able to show at least two vehicles
- A permanent exterior sign affixed to the building or land, legible from the roadway, consistent with local ordinances
- A $10,000 surety bond in your business name, expiring with the licensing year
- Liability insurance ($100,000 per person / $250,000 per incident bodily injury, $50,000 property damage)
- A passing score on the MVC knowledge exam covering NJ dealer statutes and regulations
Step-by-step process
- 1
Secure a compliant business location
Get a location with at least a 72-square-foot office (desk, chair, landline, safe) and display space for two or more vehicles, in an area zoned for vehicle sales, with a permanent exterior sign legible from the road.
- 2
Register your business and get insurance
Form your business entity, register for New Jersey sales tax, and obtain the required liability insurance ($100k/$250k bodily injury, $50k property damage). You'll need these documents in the application package.
- 3
Get your $10,000 surety bond
Buy a $10,000 motor vehicle dealer surety bond in your business name, with an expiration that lines up with the licensing year. You pay an annual premium, not the full amount.
- 4
Submit the application and fee
File the used motor vehicle dealer application with the MVC Business Licensing Services Bureau, including the $100 licensing fee, your bond, insurance certificate, lease/deed, and photos of the location and signage.
- 5
Pass the knowledge exam and inspection
Initial applicants are examined on New Jersey dealer statutes and regulations. The MVC also inspects the business location to confirm the office, display space, and signage meet the requirements.
- 6
Receive your license and dealer plates
Once approved, you're a licensed New Jersey used motor vehicle dealer and can obtain dealer plates to operate. Renew before the licensing year ends.
New Jersey dealer license cost — fees breakdown
| Item | Amount |
|---|---|
Licensing fee Plus vehicle/plate registration costs. | $100 |
Surety bond premium (annual) Premium on the $10,000 bond, by credit. | $200 – $500 |
Liability insurance $100k/$250k bodily injury, $50k property damage — required. | Varies |
Dealer plates Per-plate registration, obtained after licensing. | Varies |
Business registration NJ entity filing + sales-tax registration. | Varies |
Surety bond requirement
New Jersey requires every used-vehicle dealer to post a $10,000 surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.
You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1-5%of the bond's face value. Your actual premium depends on personal credit and business history.
New Jersey requires a $10,000 surety bond — one of the lower dealer-bond amounts in the country. The bond is in your business name and expires with the licensing year. You pay an annual premium (not the full amount), and it must stay in force the whole time you're licensed.
Renewal
New Jersey dealer licenses run on the MVC licensing year and renew annually. Keep your $10,000 bond and liability insurance current and your location compliant. Renew before expiration to avoid a lapse and the need to reapply.
Common questions
Do I have to pass an exam to get a New Jersey dealer license?+
Yes. Initial applicants are examined on the New Jersey statutes and regulations governing buying, selling, and dealing in motor vehicles. Study the MVC dealer rules before you apply.
What are the location requirements in New Jersey?+
You need an office of at least 72 square feet with a desk, chair, landline phone, and a working safe, plus display space for at least two vehicles, proper zoning, and a permanent exterior sign legible from the road. The MVC inspects the location before licensing.
How big is the New Jersey dealer bond?+
New Jersey requires a $10,000 surety bond in your business name, with an expiration coinciding with the licensing year. You pay an annual premium (not the full $10,000), based on your credit.
Do I need insurance for a New Jersey dealership?+
Yes. New Jersey requires liability insurance of $100,000 per person / $250,000 per incident for bodily injury, plus $50,000 for property damage. The original certificate goes with your application.
How long does it take to get licensed in New Jersey?+
Most applicants are licensed in about 4 to 8 weeks once the location is set up, the bond and insurance are in place, and the knowledge exam is passed. Scheduling the MVC inspection is usually the longest step.
How much does a New Jersey dealer license cost?+
Plan for about $600 – $1,500 in the first year. That covers the $100 licensing fee application fee and the $10,000 surety bond — you pay an annual premium of roughly 1-5% of the bond, not the full amount — plus business-formation, facility, and dealer-plate costs. See the full fees breakdown above.
How do I get dealer plates in New Jersey?+
Dealer plates are separate from the license itself. Once your Used Motor Vehicle Dealer license is approved, you apply for dealer plates and pay a per-plate fee (listed in the fees breakdown above). You can't obtain dealer plates before the license is issued.
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