What is a New Jersey Used Motor Vehicle Dealer Surety Bond?
In the state of New Jersey, used car dealers must post a $10,000 surety bond to obtain their license to operate. The purpose of a New Jersey Used Motor Vehicle Dealer Surety Bond is to guarantee that the principal (used vehicle dealer) complies with all laws concerning the sale of used vehicles in New Jersey and provides reimbursement if the consumer suffers a financial loss due to the principal’s actions. If a valid claim is filed by an affected individual, the surety will reimburse up to the full penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all damages paid out.
What are the terms of the bond?
New Jersey Used Motor Vehicle Dealer Surety Bonds are required by the State of New Jersey Motor Vehicle Commission. All New Jersey Used Motor Vehicle Dealer Surety Bond expire on March 31st and must be renewed annually. The surety can cancel the bond at any time before the expiration date by giving a written notice to the Motor Vehicle Commission 30 days prior to the date of cancellation.
What are the state of New Jersey requirements to obtain a dealer license?
Along with the surety bond requirement, you must meet the following qualifications and requirements before obtaining a used car dealership license:
- Supply evidence of an established place of business
- Maintain display space capable of showcasing a minimum of two vehicles
- Have an exterior sign permanently affixed to the land or building consistent with local ordinances
- Applicants must submit the following
– Copy of alternate/fictitious name filing certificate
– Photographs of premises and signage
– Copy of driver’s license for owners/officers/members/partners
– Passport-size color photographs of owners/offices/members/partners
– Copy of certificate of authority from Department of Treasury for out-of-state corporations and LLCs
– Copy of New Jersey Sales Tax Certificate of Authority
– Federal taxpayer identification number from the IRS
– Copy of deed, lease or purchase agreement for the premises to be licensed
– Copy of telephone bill for landline a premises to be licensed
– Liability insurance coverage in the amount of $100,000 – $250,000 for bodily injury and $25,000 for property damage
What is the cost of my $10,000 New Jersey Used Car Dealer Surety Bond?
Pacific Surety is proud to offer a variety of approvals regardless of credit for New Jersey Motor Vehicle Dealer Surety Bonds, with rates as low as $100 annually for well qualified applicants. The process typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
- State of New Jersey Motor Vehicle Commission – Dealership License Page
- New and Used Dealership License Application
- Used Car Dealership License Application
- Dealer Regulations
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Motor Vehicle Dealer Surety Bonds – New Jersey
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