New Jersey Auto Dealer Bond— $10,000

New Jersey compensates for its low $10,000 bond amount by imposing higher insurance requirements ($100,000/$250,000 bodily injury, $50,000 property damage) and a mandatory pre-licensure knowledge exam. The state relies on insurance rather than surety bond amounts for consumer protection. The result: NJ dealers pay as little as $100/year for their bond -- the most affordable dealer bond premium in the country.

All New Jersey dealer licenses expire on March 31st annually, regardless of when they were issued. If you receive your license in January, it still expires on March 31st of that year. Your surety bond must not expire before March 31st of the licensing year. This means new licensees obtaining their license late in the cycle may pay for a shorter initial term. Plan your application timing accordingly.

New Jersey requires all dealer applicants to attend a pre-licensure interview with the Business Licensing Services Bureau and pass a knowledge examination on lawful dealer conduct. The exam covers N.J.S.A. 39:10 (Motor Vehicle Sales), N.J.A.C. 13:21 (dealer regulations), consumer rights, title procedures, and proper record-keeping. This is unique to New Jersey and adds 1-2 weeks to the licensing timeline. Applicants who fail may retake the exam.

New Jersey requires a minimum 8x9 square foot (72 sq ft) dedicated office space with a desk, chair, working landline telephone, and a secure safe for motor vehicle documents. The office must be used exclusively for dealer operations during business hours. Display space must accommodate at least 2 vehicles. Home-based dealerships may qualify if the office meets all requirements and is properly zoned for commercial use.

New Jersey dealers must maintain minimum 20 hours per week between 9:00 AM and 5:00 PM, Monday through Saturday, unless operating 48 or more hours per week total. Business hours must be posted prominently at the dealership. These requirements are enforced through unannounced MVC compliance checks. Failure to maintain posted hours can result in license revocation.

Processing time is approximately 6-8 weeks from the Business Licensing Services Bureau. The bond can be issued within 1 business day, but the overall timeline includes fingerprint processing (BLS-163), background checks, the pre-licensure interview and exam, and document review. Ensure all forms (BLC-205B, BLS-43, BLS-163) are complete to avoid delays. Non-NJ resident owners must provide 6 points of identification rather than just a driver license copy.

The wall license fee is $100 and a set of 5 dealer plates costs $257.50, for a total of $357.50 in MVC fees. Add your surety bond premium ($100-$1,000), insurance premiums, fingerprinting costs, and any legal/accounting fees. Motorcycle dealers pay $77 for one set of motorcycle registrations and three license plates instead of the $257.50. Franchise dealers also need a manufacturer franchise agreement on file.

New Jersey requires liability insurance with minimum coverage of $100,000 per person/per incident, up to $250,000 bodily injury, and $50,000 property damage. The certificate holder must read: "NJ Motor Vehicle Commission, P.O. Box 168, Trenton, NJ 08666-0168." New Jersey relies on these higher insurance requirements rather than a high bond amount for consumer protection -- which is why the bond is only $10,000.

Contact the Business Licensing Services Bureau, Dealer Unit at 609-292-6500 ext. 5014. The mailing address is P.O. Box 170, 225 East State Street, Trenton, NJ 08666-0170. Application forms and instructions are available at nj.gov/mvc/business/newuseddeal.htm.