In order to open new and used car dealership in New Jersey and obtain a long term leasing license, you have to meet a number of criteria. First, you have to supply evidence of an established place of business this includes having an office with a desk, chair, landline telephone, and a working safe to store sensitive motor vehicle documents. The office has to be at minimum eight feet by nine feet. All dealers also must maintain a display area capable of showing a minimum of two vehicles at a time. Those seeking just a long term leasing license are not required to maintain the display area.
The prospective dealership must also have a sign affixed to the land or building in compliance with all applicable rules and regulations. It has to be on the exterior of the dealership. It also has to be legible from the road. This is not required for those just seeking a long term leasing license.
In order to apply for the new and used car dealership license within the State of New Jersey, you need to submit the following: a franchise agreement from the manufacturer for new car dealers only, as well as, copies of the alternate/fictitious name filing certificate, formation papers or the corporate resolution, the driver’s license of all owners/members/partners, the certificate of authority from the Department of the Treasury for out of state corporations and LLCs, the New Jersey Sales Tax Certificate of Authority, the deed/lease/purchase agreement for the licensed premises, and the telephone bill for the premises’ landline. Proof of issuance of a federal taxpayer identification number from the IRS must also be submitted.
Lastly, a $10,000 new and used car dealership motor vehicle surety bond is required in order to make sure you faithfully comply with all applicable state law while running your dealership.
Where can you instantly obtain new and used car dealership bonds?
Colonial Surety offers the direct and digital way to obtain a new and used car dealership motor vehicle surety bond. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be available instantly. It’s that simple!