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How to get a used car dealer license in New Jersey

You mail the used car dealership packet to the New Jersey MVC's Business Licensing Services Bureau, then go through fingerprinting, an investigation, a knowledge exam and a site inspection. The $10,000 bond, insurance and fees are requested only after preliminary approval.

  • Sourced to NJ MVC
  • Checked October 2026
  • Free
License
Motor vehicle dealer license (used sales only)
Surety bond
$10,000
State fee
$100
Pre-license course
No course; exam at site inspection
Background check
Fingerprints, all owners and officers
License term
License year ends March 31
What the state asks for

New Jersey dealer license requirements

The figures a first-time used car dealer needs before applying to NJ MVC. Each row shows how well it is supported.

Surety bond
$10,000Official source

An original surety bond in favor of the State of New Jersey, in your business name and address, running to March 31 of the year your license expires. The MVC asks for it after preliminary approval, not with the first filing.

State license fee
$100Official source

License fee listed by the MVC, paid by certified check or money order after preliminary approval. One set of five dealer plates is another $257.50. State law sets $200 for a 24-month license, so pay the amount on your approval notice.

Pre-license education
No course; exam at site inspectionOfficial source

There is no required course. An initial applicant is examined on New Jersey's dealer statutes and regulations during the site investigation. If you cannot show adequate knowledge, the MVC may require a training program.

Background check
Fingerprints, all owners and officersOfficial source

Every owner, partner and corporate officer is listed on the fingerprint request form and completes a live scan with the state's approved vendor at their own cost. Wait for the MVC's instructions before you are fingerprinted.

Insurance
100/250 BI, $25,000 PDOfficial source

Liability coverage on all owned or fleet vehicles: $100,000 per person up to $250,000 per incident for bodily injury, $25,000 property damage and $250,000 combined. The certificate needs a 30-day cancellation clause and the plate count.

Business location
72 sq ft office, 2-vehicle displayOfficial source

A used-only dealer needs an office of at least 72 square feet in a permanent, enclosed building, fixed space to display at least two vehicles, a permanent exterior sign, a desk, chairs, a fixed safe and a landline.

License term and renewal
License year ends March 31Official source

The MVC ties your bond and lease to a license year that ends March 31. State law also provides for 24-month licenses and lets the MVC fix a different expiration date, so check the date on your approval notice and license.

Sales allowed without a license
Confirm with NJ MVCConfirm with the agency

The MVC does not publish a number. State law and the MVC's rules require a license for anyone engaged in the business of buying, selling or dealing in motor vehicles, with no vehicle count.

Processing time
Not publishedConfirm with the agency

The MVC does not publish a processing time. Processing does not begin until every listed person's fingerprint receipt has been received, and approval follows the investigation and site inspection.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

New Jersey Motor Vehicle Commission, Business Licensing Services Bureau

License you apply for

Motor vehicle dealer license (used sales only)

Official licensing page

The MVC's own documents disagree on a few numbers

The MVC's packet (revised 8/25) and web page list a $100 license fee, while state law sets $200 for a 24-month license and lets the MVC fix other terms at a proportionate fee. The packet's cover letter and the rule require $25,000 of property damage coverage, but its checklist says $50,000. The web page and the packet show different mailing addresses. Follow the approval notice and the current packet.
Step by step

How to get a New Jersey dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Form the business and gather registrations

    Set up the entity or trade name and get your FEIN, a New Jersey Sales Tax Certificate of Authority and a New Jersey unemployment registration number. The application also needs the formation papers, any alternate name filing, and a driver's license copy and passport-size color photo for each owner, partner, officer or member.

    FEIN · NJ sales tax certificate

  2. Secure a site and municipal approval

    Buy or lease a location with an office of at least 72 square feet in a permanent, enclosed building and fixed space to show at least two vehicles. A lease must be for 12 months or more and run through the license expiration. Have the municipal zoning official sign and stamp form BLS-162, and complete the location type and walls form, BLS-158.

    BLS-162 · BLS-158

  3. Equip the office and put up the sign

    Install a permanent exterior sign that can be read from the roadway. Furnish the office with a desk, chairs, file storage and a fixed safe, and connect a landline in the business name so you can send the phone bill or installation order. The MVC does not approve an application until the premises are suitable for a dealership at the first inspection.

    N.J.A.C. 13:21-15.4

  4. Mail the initial application packet

    Send the Application for a Dealer License with the applicant information form (BLC-205B), child support form (BLS-43) and fingerprint request form (BLS-163), the business hours form (BLS-19), the signature card (BLS-20), the municipal and wall forms, photos or plans of the premises and the business documents. Use the address on the current packet. The fee, bond and insurance come later.

    Used dealer packet, revised 8/25

  5. Get fingerprinted when the MVC tells you to

    After the MVC receives the fingerprint request form, it mails each listed person a fingerprint application and instructions for a live scan with the state's approved vendor. Do not get fingerprinted before those instructions arrive. Forward each person's receipt and fingerprint application to the MVC. Processing does not begin until all receipts are in.

    BLS-163 · live scan

  6. Pass the investigation, exam and site inspection

    The MVC investigates the applicant and the place of business and inspects the site. The applicant, or an officer or controlling person of an entity, attends a prelicensure interview and is examined on the laws and rules for dealing in motor vehicles. The MVC says the exam is given during the site investigation.

    N.J.A.C. 13:21-15.2(d)

  7. Send the fee, bond and insurance after approval

    After preliminary approval and an approved inspection, the MVC sends a notice asking for payment by certified check or money order, the original $10,000 surety bond and an original certificate of insurance. The packet lists $100 for the license and $257.50 for one set of five dealer plates. The license and plates are mailed to the licensed location once payment is received.

    $100 + $257.50 · $10,000 bond

Practical advice

Do not buy the bond or the insurance policy, and do not get fingerprinted, until the MVC asks. The bond has to run to March 31 of the year your license expires, so get the exact dates from the approval notice before your agent issues it. Have the site furnished and signed before the inspection. Plan to carry a lease of at least 12 months while the application is pending.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

New Jersey dealer location requirements

What the state checks at the business address.

  • An office of at least 72 square feet inside a permanent, enclosed building, at a permanent, properly identified location.
  • Fixed, clearly identified space to display at least two vehicles, on the premises or immediately contiguous to it.
  • An exterior sign permanently attached to the building or land, showing the dealer name and readable from the roadway. Banners are not permitted.
  • Office furniture and equipment: a desk, chairs, file storage, a fixed safe, a landline telephone, electric lighting and climate control.
  • A deed, or a lease of at least 12 months (not month to month) that runs through the date the license is set to expire.
  • At least 20 business hours a week between 9 a.m. and 5 p.m., Monday through Saturday, posted, with the licensee or an authorized signatory present.
  • Municipal approval on form BLS-162, and a location that is not shared with another dealer or business except as the wall and ownership rules allow.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a New Jersey dealer license

Renewal and ongoing duties

Keep the office, sign, display space, landline and posted hours in place. The MVC may hold a follow-up compliance inspection any time after 90 days, and failing it means revocation. Keep the bond and insurance valid for the whole license term, report signatory changes within 10 days, and sell at least four vehicles registered in New Jersey a year to keep dealer plates.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

New Jersey dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in New Jersey?

Mail the MVC's used car dealership application packet to the Business Licensing Services Bureau. You need an office of at least 72 square feet, display space for two vehicles, a permanent sign, municipal approval and fingerprints for every owner and officer. The MVC investigates, examines you on the dealer laws and inspects the site. After preliminary approval it asks for the $10,000 bond, proof of insurance and the fees.

How much is the dealer bond in New Jersey?

$10,000. It is a surety bond in favor of the State of New Jersey, in your business name and address, from a surety company authorized in the state. It must not expire before March 31 of the year your license is set to expire. The MVC wants the original, and only after it has given preliminary approval.

How much does a New Jersey dealer license cost?

The MVC lists $100 for the license and $257.50 for one set of five dealer plates (or $77 for a set of three motorcycle plates). You pay by certified check or money order when the MVC sends its approval notice. State law sets $200 for a 24-month license and allows a proportionate fee for other terms, so pay the amount on the notice. Fingerprinting, the bond and insurance are separate costs.

Do I need a pre-licensing course in New Jersey?

No course is required up front. An applicant for an initial license is examined on the statutes and regulations that govern buying, selling and dealing in motor vehicles, and the MVC gives that exam during the site investigation. If you cannot show adequate knowledge, the MVC may require you to attend a training program.

Can I get a New Jersey dealer license without a car lot?

No. A used-only dealer must keep an office of at least 72 square feet in a permanent, enclosed building, with fixed, clearly identified space to display at least two vehicles and a permanent exterior sign. The MVC does not approve a location that is already used by another licensed dealer or an allied business, apart from limited exceptions with separate walls.

How many cars can I sell in New Jersey without a dealer license?

The MVC does not publish a number. New Jersey law says no person may engage in the business of buying, selling or dealing in motor vehicles without a license, and the MVC's rules define a dealer the same way, with no vehicle count. If you buy vehicles in order to resell them, ask the MVC's Business Licensing Services Bureau before you sell.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with NJ MVC or your attorney before you sign a lease or pay a fee.

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