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Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the New Jersey Motor Vehicle Commission (NJMVC) as part of the licensing requirements for dealerships to conduct business in the state. The total bond amount is $10,000 for all types of car dealers.
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for New Jersey auto dealer bonds typically cost between 1% and 3% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a New Jersey auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for auto dealer surety bonds in the State of New Jersey.
New Jersey auto dealer bonds provide protection for customers, creditors, and the state government. When a New Jersey motor vehicle dealer posts a surety bond, they provide a guarantee to the New Jersey MVC that they will conduct business in compliance with the conditions listed in N.J.A.C. 13:21-15.1.
If the auto dealer fails to comply with the rules and regulations, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
To obtain your auto dealer license in New Jersey, you must submit an application to the NJMVC along with the following documents:
To complete the application process, dealers must pay a $100 license fee and a $257.50 registration fee.
All motor vehicle dealer licenses and bonds are valid for no more than a year and expire annually on March 31st. The NJMVC mails renewal papers to licensed dealers 60 days before the expiration date.