Motor vehicle dealers are required to post a Motor Vehicle Dealer Bond as part of the process to license the dealership. The amount of the bond depends on what type of vehicles are to be sold, the amount of vehicles you plan to sell, and other factors. Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.
This bond guarantees the principal will abide by all New Jersey state laws and regulations along with the laws outlined in N.J.S.A. 56:8-1 et seq.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Since this bond expires annually on March 31st, the principal must renew the bond before March 31st. This is required by the obligee, not the surety company.
If the bond is cancelled, the Director of the Motor Vehicle Commission must be notified of the cancellation at least 30 days before the cancellation date.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company.
For additional licensing information, visit New Jersey’s official site.