New Jersey Auto Dealer Bond
What is a New Jersey auto dealer bond?
The New Jersey Motor Vehicle Commission requires new and used auto dealers to post a $10,000 bond as part of the state licensing process.
An auto dealer bond holds dealers and dealerships accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law, the customer can file a claim against the bond for compensation.
Get Your Auto Dealer Bond in New Jersey:
How much does a New Jersey auto dealer surety bond cost?
Auto dealer bond premiums can vary based on applicants’ credit scores: the higher your credit score, the lower your annual premium. If you have excellent credit, expect to pay as little as 1% or less of the total bond amount. Other factors that may impact the cost of your bond include your industry experience and business and personal financials.
ZipBonds can offer New Jersey auto dealer bonds for as low as $100 per year. Apply today!
How to Apply for Your Auto Dealer License in New Jersey
To apply for a new or used car dealer license in New Jersey, you must submit the following documents with your application.
- Application for a dealer license
- Child support form BLS-43
- Fingerprint request notification form BLS-163
- Copy of driver’s license
- Color photographs of each owner/partner/officer/member
- Copies of each of the following: business incorporation/formation papers, alternate/fictitious name filing certificate, property deed or lease/rental agreement, NC certificate of authority for sales tax, FEIN registration certificate
- Copy of franchise agreement (only new car dealers)
- Business hours form
- Completed authorized signatories form BLS-20
- Municipal approval certificate for business license
- Dealer certification of license location type and proper walls form BLS-158
- Photographs/plans of complete premises and signage
- Copy of phone bill or phone installation order
After preliminary license approval, you must submit these items:
- Original surety bond
- Fees
- Original certificate of insurance
Frequently Asked Questions
How long does it take to get a motor vehicle dealer bond?
Since this bond requires underwriting, we can’t issue it to you instantly. However, the ZipBonds team always strives to deliver your bond to you within 24 hours of application.
Who regulates auto dealer bonds in New Jersey?
The New Jersey Motor Vehicle Commission regulates licensing and bonding for auto dealers in the state.
How do I renew my surety bond?
To remain active, your bond and license must be renewed each year by a specific date. In New Jersey, the deadline is March 31.
If you’re buying your bond from Zip, we’ll send a reminder when the expiration date is approaching. That way, you’ll have plenty of time to renew your bond and maintain your business license.
What happens if someone files a claim on my bond?
A customer can file a claim if a dealer commits fraud or unethical or unlawful business activity. If the claim is valid, the surety may cover the customer’s losses up to the total amount of the bond. The dealer will then need to pay back the surety for the damages.
Claims can be costly and damage your reputation and ability to get licensed and bonded again, so it’s best to do everything you can to avoid them.
How can I avoid claims on my auto dealer bond?
Avoid illegal activities and fraudulent business practices to prevent claims on your bond. Pay all taxes you owe. Also, ensure you comply with your licensing regulations. If a customer complains about something, address the issue immediately to avoid complaints from turning into costly claims.
How to Get Your New Jersey Auto Dealer Bond
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to get bonded in a flash!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.