Motor Vehicle Dealer Bond in New Jersey

What this bond requires in New Jersey

NJ MVC requires a $10,000 surety bond in the dealer business name and address, with an expiration date coinciding with the licensing year (must not expire before March 31 of the license expiration year). Dealer license renewal runs February 1 through March 31 every year. The bond must be issued by a surety company authorized to transact business in New Jersey. BLS staff are prohibited by state law from recommending bond or insurance companies.

Who requires it

The motor vehicle dealer bond is required by the New Jersey Motor Vehicle Commission, Business Licensing Services Bureau (Dealer Unit) under N.J.S.A. 39:10-19 et seq..

How to file in New Jersey

Download the used or new dealer application from the NJ MVC Business Licensing pages and mail it with required documentation to NJ Motor Vehicle Commission, Business Licensing Services Bureau, P.O. Box 170, Trenton, NJ 08666-0170. After receipt, MVC conducts a full investigation of the applicant and business location plus a site inspection. Following preliminary approval, MVC sends a notification requesting payment of the fee along with proof of insurance and the $10,000 surety bond, which must be in the business name/address and not expire before March 31 of the license year.

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FAQ

Common questions

Is a motor vehicle dealer bond required in New Jersey?

Yes. New Jersey requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $10,000.

How much is the bond in New Jersey?

The bond amount is $10,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the New Jersey Motor Vehicle Commission, Business Licensing Services Bureau (Dealer Unit).

How is the bond filed?

Download the used or new dealer application from the NJ MVC Business Licensing pages and mail it with required documentation to NJ Motor Vehicle Commission, Business Licensing Services Bureau, P.O. Box 170, Trenton, NJ 08666-0170. After receipt, MVC conducts a full investigation of the applicant and business location plus a site inspection. Following preliminary approval, MVC sends a notification requesting payment of the fee along with proof of insurance and the $10,000 surety bond, which must be in the business name/address and not expire before March 31 of the license year.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.