New Jersey Car Dealer Bonds
The $10,000 auto dealer bond is required for motor vehicle dealers in the state of New Jersey. We work with various A-rated approved carriers to provide the lowest rate in the market. Upon purchasing the bond, the dealer will receive the original bond form which needs to be filed with the Business Licensing Services Bureau – Dealer Unit in New Jersey.
Prices for the New Jersey Motor Vehicle Dealer Bond
Auto dealer bonds cost as low as $100 in full or $9 per month in New Jersey. Factors that affect the surety bond price are dealership owner’s credit score, classification type, and financial assets.
|Price Tier*||$10,000 New Jersey
|Monthly | Annual|
|Preferred||$9 | $100|
|Standard||$19 | $200|
|Credit Repair||$37 | $400|
*The cost of the New Jersey motor vehicle dealer bond is based on a number of factors, as stated above. The prices shown in the table above are the lowest rates offered for a one-year term or monthly fee, are not guaranteed, and are subject to change.
How Easy Is It to Apply Online for a New Jersey Auto Dealer Bond?
It is super easy. Simply click the apply now button below to get started on the quick application process. The web app will guide you through the instructions to receive your online surety bond quote.
|Application for New Jersey Auto Dealers|
|$50,000 Motor Vehicle Dealer Bond|
Requirements of the New Jersey Auto Dealer Bond.
In order to conduct business, New Jersey licensed car dealers are required to have a surety bond in place in the amount of $10,000. Motor vehicle dealer bonds must be issued by a company authorized to do surety business within the state of New Jersey. The bond is put in place to protect the State of New Jersey and the customer of the auto dealership in the event of misrepresentation or fraudulent activities.
The bond must be issued for a 12-month period and renewed upon expiration for sequential 12-month periods. Once a bond is purchased, it needs to be filed with the New Jersey Motor Vehicle Commission (NJ-MVC).
Are Claims Something That Dealers Need to Worry About?
Simply put, yes. Claims can affect your license in many different ways including suspension of the dealer license. Claims can be filed by either the State of New Jersey or the public. When a claim is filed against the auto dealer, and the claim is legitimate, the surety company will compensate the claimant up to the full penalty amount of the bond. The Principal (car dealer) is then responsible for paying back the owed money to the surety company. This differs from typical insurance, where an insurance policy acts as a line of credit and doesn’t require the principal to reimburse the insurance company. Not providing a valid title is just one of the many ways a claim can arise.
Fast facts About New Jersey Motor Vehicle Dealers.
In New Jersey, it is illegal to idle your car for longer than three minutes. However, the department is unable to enforce this on residential properties or public roadways.
The NJ-MVC is partnered with the New Jersey Sharing Network to educate people on organ and tissue donation. All New Jersey Motor Vehicle Agencies (MVAs) provide their customers with education materials regarding the matter which has helped the number of registered organ and tissues donors in NJ steadily rise.