New Jersey Dealers Licenses are regulated by the New Jersey Motor Vehicle Commission in Trenton, New Jersey.
Dealer Training Podcast
New Jersey Dealer License Application
To obtain an New Jersey Dealer License, you can call the
New Jersey Motor Vehicle Commission at 609-292-5340 or write to the
New Jersey Motor Vehicle Commission at:
Motor Vehicle Commission
Business Licensing Services Bureau
PO Box 171
Trenton, New Jersey 08666-0171
New Jersey Dealers, New Jersey
dealers are regulated by the New Jersey Used Motor Vehicle
Commission
New Jersey Motor Vehicle Commission
Business Licensing Services Bureau
P.O. Bo 170
Trenton, NJ
08666-0170
609-292-6500 et. 5014
www.njmvc.gov
I want you go in depth in the 6 Steps to an New Jersey
Dealers License
Step Number 1 Dealer Surety Bond and Insurance
You must obtain a dealer surety bond and insurance in order
to obtain an New Jersey dealers license. I always recommend
this as the first step in obtaining a New Jersey dealers
license. The cost of a dealer surety bond is based on your
credit score and the cost of your insurance is based upon
your driving record. I am often asked what it costs to
obtain a New Jersey dealers license and I can never answer
that question accurately because the total cost will depend
on your credit score and your driving record.
The State of New Jersey requires you to obtain a $10,000
dealer surety bond in order to be granted a New Jersey
dealers license, is the bond going to cost you $10,000, of
course not, with good credit you should be spending about
100 to 200 dollars a year for your bond, your insurance
company will normally send you an invoice every year or
every other year. If you have a couple of blemishes on your
credit score, the price of your bond can increase
dramatically. The bond must be a surety bond eecuted by an
insurance or bonding company authorized to do business in
New Jersey,
You will also need an insurance policty, $100,000 - $250,000
for bodily injury
$25,000 for property damage
Step 2-Federal Ta ID Number and New Jersey Sales Ta
Certficate
Before you apply for a New Jersey dealers license you must
obtain a Federal Ta ID Number and a New Jersey Sales Ta
Certificate.
I am going to make a very bold prediction, If you take the
necessary steps to obtain a New Jersey dealer license, I
predict your income will increase dramatically, In fact may
of us that have obtain a dealer license have realized
profits that were unimaginable before we obtained our
dealers license. With the increase in your income, I
guarantee that Uncle Sam is going to want piece of it, so we
must obtain a Federal Ta ID Number, this is the number the
Federal Government will tack onto your new business, you
will have this number on your ta returns, and it shows the
State of New Jersey you are ready to pay federal taes on
your profits. You are also going to have to obtain a New
Jersey Sales Ta Number so you can easily collect sales ta on
the vehicles you sell.
You must obtain your Federal Ta ID and New Jersey Sales Ta
Certificate number BEFORE you apply for your New Jersey
Dealers license. I you have questions about your New Jersey
Sales Ta number you can call 609-292-9292 (Option #1)
Step 3 Fingerprints
You must have your fingerprints taken before you are granted
an New Jersey Dealers License. The State of New Jersey
requires dealers to be of a higher ethical standard than the
average person walking down the street. Very soon you will
have oversight over very large financial transactions. Most
of the vehicles you sell with your dealers licenses will be
worth several thousands of dollars. This are very large
financial transactions that the State of New Jersey is
allowing you complete oversight. So, before the State of New
Jersey approves your dealers license, they want to make sure
you never rolled back odometers, they want to make sure you
have never stolen a car, the State of New Jersey wants to
make sure they are not giving a dealers license to someone
that was managing some auto theft ring. As I stated a moment
ago, the state of New Jersey requires dealer to be high
ethical standards so you a background check will be ran on
you when you obtain your mandatory fingerprints.
.
Step 4-Building & Lot
You must have a building for your New Jersey dealers
license. Your business building must be a permanent enclosed
building owned or leased by you, The established place of
business must be devoted mainly to the operation of your
dealership
The dealer shall conduct business in a building on the same
property as the display lot. If the dealer is a used car
broker, and will not display an inventory of vehicles for
sale, the requirements of this rule for an established place
of business shall still be met, with the eception of the
display area for vehicles. That would be for brokers. All
sales activity must take place at the lot, you cannot sell
vehicles away from the lot unless you are selling vehicles
at a dealer auction.
You must also have also have installed and maintain a
working land line telephone whose number shall be listed in
the licensee's trade name, the same as that which is listed
in the application and in any advertising. You must also
erect and maintain a permanent sign. The sign shall list the
trade name of the dealer, the same as that which is listed
in the application and in any advertisement by the dealer.
The Telephone number listed on the sign must be the phone
number listed in the application and in any advertisement by
the dealer. The sign must also list the hours of operation
Be manned and open to the public at least 20 hours each week
or
The sign must be professionally designed on permanent
material,.
Step 5 Register Your New Business with the New Jersey
Secretary of States office.
The
New Jersey Secretary of State is not only the State of
New Jersey’s leading election authority they are also in
charge of keeping a record of every business operating in
New Jersey. They want a record of the dealership you are
opening as well. Before you file your business on the
New
Jersey Secretary of States website you will need to decide
upon your business entity. You are either starting your
dealership as a sole proprietor, and llc, a corporation, a
business trust, a partnership, or a not for profit. You can
get some legal advice to determine what business enitity is
best for you, or If you need guidance you can call the
Secretary of States office at 800-457-8283
Let me show you how easy this is, it only takes a few
moments when you have decided your business entity
Step 6-Complete Application
The final step you need to do to obtain an New Jersey
dealers license is to complete an New Jersey dealer license
application in it’s entirety. This must be done online only,
the State of New Jersey no longer accepts mailed dealer
applications.
If you make mistakes on the application it will be returned,
so you want to spend some time and ensure there are not
mistakes on the application.
If there is a change in business entity, after you become a
licensed dealer, a new application must be submitted with
all applicable paperwork, including a new bond and a new
dealer license number will be assigned.
Don’t for get to have the following documents ready
Completed license application
Child Support Certification for each owner
Fingerprint Request Notification Form
Copy of Driver License for each owner
Passport size color photograph for each owner
Copy of Incorporation/Formation Papers
Copy of Alternate/Fictitious Name Filing Certificate (if
applicable)
Copy of Federal EIN Registration Certificate
Copy of Property Deed or Lease/Rental Agreement
Copy of NJ Certificate of Authority for Sales Ta
Business Hours Form
Completed Authorized Signatories Form, etc.)
Photographs/plans clearly depicting the complete premises
and signage where the dealer intends to conduct business
When you submit your application correctly you should
receive your New Jersey Dealers license in about 30 days.
Once you obtain your New Jersey dealers license you must
display the license prominently, you are going to work hard
to obtain your New Jersey dealers license, you are going to
be proud when you obtain your New Jersey dealers license,
New Jersey law requires that you display your dealers
license prominently when it is granted,
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