New Jersey Motor Vehicle Dealer License Requirements – 2025 Overview
If you buy, sell, or deal in motor vehicles in New Jersey as a business, you must be licensed by the New Jersey Motor Vehicle Commission (NJMVC). This page summarizes the core requirements for new/used and used‑only dealerships.
Important: This is an unofficial summary, not legal advice. Forms, fees, and bond amounts change. Always confirm requirements with NJMVC before applying.
1. Who regulates dealers in New Jersey?
Dealer licensing is handled by the New Jersey Motor Vehicle Commission (NJMVC).
- Regulator: New Jersey Motor Vehicle Commission (NJMVC)
- New/Used & Used Dealer page: New and Used Car Dealerships
- How to get a dealership license: How to Get a Dealership License
- Application packet (PDF): New/Used & Used Only Car Dealership Application Package
2. New Jersey dealer license types
The same application packet is used for both new/used and used‑only car dealerships. Your license type is determined by whether you have a manufacturer franchise agreement.
- New/Used Car Dealership – sells new vehicles under a franchise plus used vehicles.
- Used Only Car Dealership – independent used‑vehicle dealer.
- Leasing and certain specialty categories are handled under separate instructions.
3. Business location, office, and sign requirements
NJMVC requires an established place of business at the time the license is issued. Key expectations include:
- A permanent office where records are kept and business is conducted, located at the premises to be licensed.
- An exterior permanent sign affixed to the land or building, consistent with local ordinances and legible from the roadway.
- Adequate display space for vehicles offered for sale.
- A dedicated landline telephone at the licensed premises, verified by a recent phone bill.
- Posted business hours and compliance with all local zoning requirements.
Photos of the lot, sign, office, and posted hours are typically submitted with your application, and NJMVC will investigate both the applicants and the business location before issuing a license.
4. Entity, tax registration, fingerprints, and bond
4.1 Entity and tax registration
- Register your business name and entity (corporation, LLC, etc.) with the New Jersey Division of Revenue.
- Obtain a New Jersey Sales Tax Certificate of Authority for your dealership.
- Obtain a Federal Taxpayer Identification Number (FEIN) from the IRS.
4.2 Ownership documents and identification
- Provide formation papers, corporate resolutions, or partnership agreements, as applicable.
- Provide a copy of each owner, officer, member, or partner’s driver license.
- Out‑of‑state corporations or LLCs must provide a New Jersey certificate of authority.
4.3 Fingerprints and background checks
All owners, partners, and corporate officers listed on the application must complete the fingerprint process and are subject to a background investigation after the completed application is received.
4.4 Surety bond and insurance
- New Jersey dealers must obtain a motor vehicle dealer surety bond in the amount required by statute for their license type. Many guides reference a minimum bond of $10,000 for standard dealer operations, but you should confirm the exact amount with NJMVC or your bonding company.
- Proof of garage liability or commercial liability insurance covering the dealership and dealer plates is required before a wall license and plates will be issued.
5. New Jersey dealer application steps
- Decide whether you will operate as a new/used or used‑only dealership.
- Form your business entity, obtain your FEIN, and register for New Jersey sales tax.
- Secure a compliant location, install a permanent sign, set up your landline, and confirm zoning approval.
- Gather required documents:
- Business formation papers or corporate resolution
- Alternate / fictitious name filing certificate, if applicable
- Lease, deed, or purchase agreement for the premises
- Telephone bill for the landline at the business location
- Copies of owner / officer driver licenses
- Arrange your dealer surety bond and liability insurance.
- Complete the NJMVC New/Used or Used Only Car Dealership Application and submit the full package by mail or as instructed.
- Respond to any follow‑up requests and prepare for a site inspection and background review.
- After preliminary approval and inspection, pay the license and plate fees when invoiced by NJMVC.
6. After approval: ongoing New Jersey compliance
- Renew your dealer license, bond, and insurance as required.
- Maintain your established place of business, including sign, office, and display area.
- Keep complete records of all sales, trades, and titles for the period specified by New Jersey law.
- Follow NJMVC rules for temporary registrations, title transfers, and advertising.