To apply, you must:
10 New Jersey Dealer License Requirements
New Jersey Dealer Licenses are issued by the New Jersey Motor Vehicle Commission's Business Licensing Services Bureau. This page covers New Jersey's 2 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. New Jersey's Dealer application has boxes for a corporation, partnership, proprietorship, or other. The MVC's rules name the limited liability company too (N.J.A.C. 13:21-15.1).
An LLC keeps your business separate from your personal life and adds trust to the name. Every applicant files a copy of its federal EIN notice and its New Jersey sales tax certificate of authority. An out-of-state corporation adds its New Jersey authorization to do business.
Add every owner at the start. New Jersey requires a new, complete application whenever you add or remove a partner, change the corporate structure, or transfer more than 20% of the ownership. It is due within 30 days (N.J.A.C. 13:21-15.2(n)). Start as an LLC or corporation, because changing from a sole proprietorship later means that new application.
Choose your Dealer License Type
New Jersey's 2 main Dealer License types are the Motor Vehicle Dealer License and the Leasing Dealer License, each on its own application packet. The MVC does not issue a wholesale dealer license. The Motor Vehicle Dealer License covers wholesale and retail sales; your local zoning board decides which.
The MVC also licenses boat dealers and issues converter, finance, insurer, manufacturer, non-conventional, and transporter registrations.
| License Type | What It Lets You Do |
|---|---|
| Motor Vehicle Dealer LicenseOne application; check New & Used Sales or Used Sales Only | Buy and sell motor vehicles, wholesale or retail, including brokering and auctioning. A licensed Dealer can also deal in mopeds and leased vehicles with no extra endorsement; boats need their own license |
| Leasing Dealer LicenseIts own application packet | Lease vehicles from a permanent business location where your books and records are kept; no floor-space or display-area minimum applies |
Get your Dealer Bond (Surety Bond)
A New Jersey Motor Vehicle Dealer License requires a $10,000 surety bond in favor of the State of New Jersey. The Leasing Dealer License requires the same. The bond protects customers if you break New Jersey's dealer laws. A $10,000 Dealer Bond costs only $100 a year.
The bond must be the original; copies are not accepted. A dealer's bond must not expire until March 31 of the year the license expires. A leasing dealer's bond runs 12 months at a time.
| License Type | You Pay | Bond Amount |
|---|---|---|
| Motor Vehicle Dealer License, Used Sales OnlyNew Jersey - Used Motor Vehicle Dealer ($10,000). No credit check | $100/yearabout $8 a month | $10,000 |
| Motor Vehicle Dealer License, New & Used SalesNew Jersey - New and Used Motor Vehicle Dealer ($10,000). Credit check required | $100/yearabout $8 a month | $10,000 |
| Leasing Dealer LicenseNew Jersey - Vehicle Leasing Company ($10,000). Credit check required | $100/yearabout $8 a month | $10,000 |
Get your Dealer Liability Insurance
A New Jersey Motor Vehicle Dealer License requires a liability insurance certificate before the license is issued (N.J.A.C. 13:21-15.2). The limits are $100,000 per person and $250,000 per incident for bodily injury, $25,000 per incident for property damage, and $250,000 combined. Those are the limits, not the cost; your agent quotes the price.
The policy covers every vehicle you own or operate, or that's driven at your request, with a 30-day cancellation clause, for the whole license term.
The MVC's checklist form prints the property-damage figure as $50,000; the regulation and the cover letter in the same packet say $25,000. The Leasing Dealer License packet asks for the same limits.
Set up your Dealer Office
A New Jersey Motor Vehicle Dealer License requires a “permanent, properly identified location” inside a permanent, enclosed building (N.J.A.C. 13:21-15.4). A used-only dealer needs at least 72 square feet of office space. A new-vehicle dealer needs at least 1,000 square feet, with equipment to service vehicles.
| What New Jersey Requires | |
|---|---|
| Building | A permanent, enclosed building. Used-only: at least 72 square feet of office. New vehicles: at least 1,000 square feet, with equipment to service vehicles |
| Display | A clearly identified, fixed area to display at least 2 vehicles, on the premises or immediately next to them |
| Sign | An exterior sign permanently affixed to the land or building, with letters readable from the major avenues of traffic, showing your dealer name or a disclosed trade name. Banners are not permitted |
| Office equipment | A desk, chairs, file storage, a fixed safe, electric lighting, working phone lines, and climate control |
| Zoning | A Municipal Approval Certificate (BLS-162), signed and stamped by your municipality's zoning official, plus photos or plans of the whole premises, sign included |
| Hours | Open no fewer than 20 hours a week between 9 a.m. and 5 p.m., Monday through Saturday, unless you keep business hours of 48 hours or more |
| Shared buildings | Not approvable if another dealer or allied business is already on the premises, unless you share ownership or a certified firewall separates the two |
Attend the Prelicensure Interview
A New Jersey Dealer License requires no pre-license class and no written exam. Instead, every initial applicant attends a prelicensure interview scheduled by the Commission. For a business, at least one officer, director, or controlling person attends (N.J.A.C. 13:21-15.2(d)).
You are examined on your knowledge of “the lawful conduct of the business of buying, selling, or dealing in motor vehicles in New Jersey.” No pass mark, question count, or fee is published. If you can't show adequate knowledge, the Commission may require you to attend a training program.
Pass the Background Check (Live Scan)
A New Jersey Dealer License requires a Live Scan fingerprint background check by the state-approved vendor (N.J.A.C. 13:21-15.2(b)). A sole proprietor submits their own fingerprints; for a business, every officer, director, partner, and controlling person is fingerprinted.
Wait for the Commission's mailed instructions before you get printed; prints taken early have to be redone. The Commission also asks the State Police to flag each fingerprint record so it stays monitored after licensing.
If you have a record
- Fraud is the automatic bar. A conviction for “a crime, arising out of fraud or misrepresentation in the sale, leasing or financing of a motor vehicle” makes you ineligible (N.J.S.A. 39:10-19). The MVC's proper-person rule drops the vehicle qualifier and names any fraud or misrepresentation crime. It reaches employees too: hiring someone with that conviction, when you knew or should have known, is grounds against the license
- Everything else is discretionary. The Chief Administrator may weigh any other illegal activity under the “good character” test. New Jersey names no other crime and publishes no waiting period
- Disclose it all. The application asks whether any owner, partner, or officer was ever arrested, charged, or convicted of a criminal or disorderly persons offense, in any state. A willfully false answer carries administrative, civil, or criminal penalties
- The way back. Evidence of a pardon, an expungement, or a parole board rehabilitation certificate “shall preclude” a licensing authority from disqualifying you (N.J.S.A. 2A:168A-3). A Certificate of Rehabilitation from your sentencing court or supervising authority is presumptive evidence of rehabilitation
- If you're denied. You have 25 days from the Notice of Proposed Disciplinary Action to request a hearing. The final decision is appealable to the Appellate Division of the Superior Court
Submit your Dealer License Application
You apply by mail; New Jersey has no online Dealer License application. Download the Application for a Dealer License packet, complete it, and mail it to the Business Licensing Services Bureau in Trenton. The license fee is $100, and every fee is itemized under costs.
Each owner, partner, officer, or member includes a copy of their driver's license. The photo and SSN are required from each of them and from every director too. The state says refusing the SSN may result in denial. If you live outside New Jersey, add the MVC's 6 Points of ID.
Pass the Site Inspection
After the MVC receives your complete application, it fully investigates you and the place of business, and that includes a site inspection. Once the inspection passes and every requirement has preliminary approval, the MVC sends a notice requesting the fee, the bond, and proof of insurance. It then mails the license and plates.
A follow-up compliance inspection can happen any time after 90 days of licensing. Failing it “will result in revocation of the license” (N.J.A.C. 13:21-15.4(a)(3)).
Get your Dealer License Plates
New Jersey dealer plates come from the MVC with the license, at $257.50 for a set of 5, and the tags let you drive your inventory. A used-only or leasing dealer starts with 1 set and can request up to 20 plates in writing. A new-vehicle dealer can have up to 20 from the start.
There is no personal-use allowance (N.J.A.C. 13:21-15.11). A dealer plate goes only on inventory. The vehicle must be titled in your name or held with a bill of sale or manufacturer's certificate of origin. A vehicle that would otherwise need commercial registration can carry one only while it's held for sale and demonstrated to a buyer.
How many sets a used or leasing dealer keeps after that depends on annual sales, in the tiers below.
| Vehicles Sold or Leased in NJ per Year | Dealer Plates |
|---|---|
| 4 to 30 vehicles | 1 set of 5 plates |
| 31 to 60 vehicles | 2 sets |
| More than 60 vehicles | 1 more set for every additional 30 vehicles |
Dealer License Cost
A New Jersey Motor Vehicle Dealer License costs $100 on the MVC's current application, and nothing is due until preliminary approval. N.J.S.A. 39:10-19 still reads $200 for the initial fee and $200 for renewal; the MVC's packet and fee page both charge $100. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Dealer LicenseThe MVC calls it the wall license | $100 on the MVC's application, 24-month term$200 initial and $200 renewal in N.J.S.A. 39:10-19 |
| Dealer plates, set of 5 | $257.50: $100 base registration, $100 Transportation Trust Fund, $2.50 Traumatic Brain Injury Fund, $35 Commission Service Fund, $20 Helicopter Fund |
| Motorcycle dealer plates, set of 3 | $77 |
| Dealer Bond | $100 a year, $10,000 bond |
| Liability insurance | $100,000 per person and $250,000 per incident bodily injury, $25,000 property damage, priced by your agent |
| Restoration after a lapse | $200: $100 license and $100 registration |
Dealer License Renewal
A New Jersey Motor Vehicle Dealer License is valid for 24 months, and every license expires on March 31. Renewals run in the MVC's window from February 1 to March 31 each year. N.J.S.A. 39:10-19 sets the renewal fee at $200; the MVC publishes no current renewal fee.
Common Questions
Can you get a New Jersey Dealer License with a felony?
Yes, unless the conviction is for a crime arising out of fraud or misrepresentation, which N.J.S.A. 39:10-19 makes an automatic bar. New Jersey names no other disqualifying crime and no waiting period; other records get a discretionary review. A pardon, an expungement, or a rehabilitation certificate “shall preclude” disqualification under the Rehabilitated Convicted Offenders Act.
Can you get a Dealer License in New Jersey without a lot?
Not without a display area. A New Jersey Motor Vehicle Dealer License requires a permanent, enclosed building with at least 72 square feet of office. It also needs a 2-vehicle display area, an exterior sign, and zoning approval. No statute or rule names a residence as off-limits; those requirements are what your address must clear.
How many cars can you sell in New Jersey without a Dealer License?
New Jersey sets no number. A Dealer License is required for anyone “engaged in the business of buying, selling, or dealing in motor vehicles” (N.J.A.C. 13:21-15.1, under N.J.S.A. 39:10-19). The MVC publishes no vehicle count; the 4-vehicle figure in its rules only decides whether a licensed Dealer keeps dealer plates.
Does New Jersey have a wholesale Dealer License?
No. The MVC's FAQ says: “At present, the MVC does not issue a wholesale dealer license.” One Motor Vehicle Dealer License covers wholesale and retail sales. Your municipal zoning board decides which kind your location may transact, so the office, display, and sign rules apply either way (MVC FAQ).
How long does a New Jersey Dealer License take?
New Jersey sets no legal deadline for the MVC to grant or deny a Dealer License. The MVC's own FAQ says “The application process takes approximately six to eight weeks.” The fingerprint check and the prelicensure interview are scheduled by the Commission after it receives your application.
Can I add a partner or LLC member later?
Not without a new application. New Jersey requires a new, complete application whenever you add or remove a partner or form a new partnership. The same applies when you change the corporate structure or transfer more than 20% of the ownership. It is due within 30 days, and skipping it suspends the existing license immediately (N.J.A.C. 13:21-15.2(n)).
Do I need a business bank account?
No. Nothing in New Jersey's dealer statute, its regulations, or the application checklist asks for a business bank account. The only financial items in the packet are the $10,000 surety bond and the liability insurance certificate.
Can I drive a car on New Jersey dealer plates for personal use?
No. New Jersey dealer plates go only on inventory. A plate may not go on any vehicle used for purposes of the dealership other than inventory (N.J.A.C. 13:21-15.11). No New Jersey statute or rule gives an owner, officer, or employee a personal-driving allowance on a dealer plate.
Support
The Business Licensing Services Bureau handles every license and registration on this page, by mail from Trenton.
| Contact | Detail |
|---|---|
| Department | New Jersey Motor Vehicle Commission, Business Licensing Services Bureau |
| Phone | (609) 777-0035 Dealer applications(609) 292-6500 ext. 5014, Business Licensing Services(609) 292-4400 fax |
| [email protected] | |
| Address | 225 East State Street, Trenton, NJMail: P.O. Box 168, Trenton, NJ 08666-0168 |
Additional sources (4)
The forms and the statute for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- N.J.S.A. 39:10-20, hearings and appeals — fines, suspension, and revocation, the 10 days' notice before a hearing, and review by the Appellate Division of the Superior Court
- MVC Business Licensing Services FAQ — no wholesale license, the 6-to-8-week estimate, the February 1 to March 31 renewal window, and the $200 restoration fee
- 6 Points of ID (MVC) — the identity documents an owner who lives outside New Jersey assembles
- Rehabilitated Convicted Offenders Act, N.J.S.A. 2A:168A (PDF) — the pardon, expungement, and Certificate of Rehabilitation rules for licensing authorities
