NJ Auto Dealer Bond Requirements: Complete Guide for Motor Vehicle Dealers
December 25, 20246 min readBy Can Do Surety Bonds
If you're opening an auto dealership in New Jersey or renewing your license, you'll need a motor vehicle dealer surety bond. This guide covers everything you need to know about NJ auto dealer bond requirements.
## What is an Auto Dealer Bond?
An auto dealer bond (also called a motor vehicle dealer bond) is a surety bond required by the New Jersey Motor Vehicle Commission (MVC) for all licensed dealers. It protects consumers from dealer fraud, failure to properly transfer vehicle titles, odometer tampering, and other violations of state motor vehicle laws.
## Who Needs an Auto Dealer Bond in NJ?
All motor vehicle dealers in New Jersey must be bonded, including:
- New car dealers
- Used car dealers
- Wholesale dealers
- Motorcycle dealers
- RV and trailer dealers
- Boat dealers
## NJ Auto Dealer Bond Amount
New Jersey requires a $10,000 surety bond for all motor vehicle dealers. This is a flat amount required by state statute, regardless of dealer type or sales volume. The bond must be maintained continuously as a condition of your dealer license.
## How Much Does an NJ Auto Dealer Bond Cost?
Your bond premium depends on your credit score and business history:
- **Good Credit (680+):** $100-$300 annually
- **Fair Credit (600-679):** $300-$500 annually
- **Poor Credit (Below 600):** $500-$1,000 annually
Most dealers with good credit pay around $100-$200 per year for their $10,000 bond.
## How to Get an Auto Dealer Bond in NJ
1. Apply with a surety bond agency like Can Do Surety Bonds
2. Complete a brief application with business information
3. Receive instant or same-day approval for most applicants
4. Pay your premium and receive your bond
5. Submit the original bond to the NJ MVC with your license application
## Additional Requirements for NJ Auto Dealers
Beyond the surety bond, you'll also need:
- Approved dealership location meeting MVC requirements
- General liability insurance
- Garage keeper's insurance
- Completed dealer training course
- Background check clearance
Ready to get your NJ Auto Dealer Bond? Contact Can Do Surety Bonds at (609) 491-7404 for fast approval and competitive rates.