Getting a used car dealer license in New Jersey

In New Jersey, used-car dealers are licensed by New Jersey MVC Business Licensing Services Bureau.

Before your first retail sale you’ll need a $10,000 surety bond and a business location that meets the state’s rules. The state also inspects the location.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

License
Used car dealership nj.gov (source, opens in a new tab)
Issued by
New Jersey MVC Business Licensing Services Bureau nj.gov (source, opens in a new tab)
Surety bond
$10,000 bond. nj.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Official fees
$100 wall license + $257.50 set of five plates = $357.50. Fee page carries older January 2007 label; primary licensing page confirms amounts. nj.gov (source, opens in a new tab)
Site inspection
Yes: MVC applicant/site investigation. nj.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used car dealer license

    New Jersey's MVC Business Licensing Services Bureau licenses used car dealerships. New and franchise dealers, and leasing companies, are licensed differently. nj.gov › newuseddeal.htm (source, opens in a new tab)

  2. Set up the premises

    You need display space for at least two vehicles and an office of at least 72 sq ft with a desk, a chair, a working landline and a safe for records; a cell phone alone doesn't qualify. The premises can't be another licensed dealer's or an allied business's location. Get municipal approval, and put up a permanent exterior sign legible from the road; banners don't count. nj.gov › newuseddeal.htm (source, opens in a new tab) nj.gov › useddealer.pdf (source, opens in a new tab)

  3. Register the business

    Prepare the entity or trade-name documents, tax registration and proof of your EIN, plus ID and fingerprints for every owner and officer. nj.gov › newuseddeal.htm (source, opens in a new tab) nj.gov › useddealer.pdf (source, opens in a new tab)

  4. Submit the application

    The used dealer application packet includes the municipal approval, signature, hours and fingerprint material. nj.gov › newuseddeal.htm (source, opens in a new tab) nj.gov › useddealer.pdf (source, opens in a new tab)

  5. MVC investigation

    MVC investigates you and the site. nj.gov › newuseddeal.htm (source, opens in a new tab)

  6. Bond, insurance and fees on preliminary approval

    Once you're preliminarily approved, provide a $10,000 bond and liability insurance of $100,000 per person, $250,000 per accident and $25,000 property damage, and pay the fees: $100 for the wall license and $257.50 for a set of five plates, $357.50 in all. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. nj.gov › newuseddeal.htm (source, opens in a new tab) nj.gov › useddealer.pdf (source, opens in a new tab)

  7. License and plates by mail

    Your license and plates are mailed to you. nj.gov › newuseddeal.htm (source, opens in a new tab)

The location

Display lot
Display space for at least two vehicles. nj.gov (source, opens in a new tab)
Office
Office at least 72 sq ft; desk, chair, working landline and records safe. nj.gov (source, opens in a new tab)
Sign
Permanent exterior road-legible sign; banners do not qualify. nj.gov (source, opens in a new tab)
Zoning and home-based lots
Municipal approval; premises cannot be another licensed dealer/allied business location. nj.gov (source, opens in a new tab)

Before you apply

Entity/trade-name, tax registration and EIN proof; owner/officer IDs and fingerprints. Liability $100,000/person, $250,000/accident, $25,000 property. nj.gov (source, opens in a new tab)

Forms

Used Dealer Application packet includes municipal approval, signature, hours and fingerprint material. nj.gov (source, opens in a new tab)

Get the current versions from nj.gov; we don’t host copies.

Not the license you’re after?

New/franchise and leasing licenses differ. nj.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: satisfying landline, records-safe and separate-premises requirements.

Easy mistakes:

Questions

How much does a New Jersey dealer license cost?

$357.50: $100 for the license and $257.50 for a set of five plates. The bond premium, insurance and the premises cost more. nj.gov › newuseddeal.htm (source, opens in a new tab) nj.gov › dealership.htm (source, opens in a new tab)

Can I use a cell phone as the business phone?

No. The office needs a working landline. nj.gov › newuseddeal.htm (source, opens in a new tab) nj.gov › useddealer.pdf (source, opens in a new tab)

Can I share a lot with another dealer?

No. The premises can't be another licensed dealer's or an allied business's location. nj.gov › useddealer.pdf (source, opens in a new tab)

Sources

Not affiliated with the New Jersey MVC. Not legal advice. Requirements change; always confirm with the state.