How to get a dealer license in New Jersey

No person may engage in the business of buying, selling or dealing in motor vehicles in New Jersey without a license (N.J.S.A. 39:10-19). MVC says that if you are engaged in the business of buying, selling, or dealing in motor vehicles, you must be licensed. No numeric sales threshold is published.

• Used car dealership: Businesses that buy, sell or deal in used vehicles only. A licensed dealer can also deal in mopeds and leased vehicles with no additional endorsement.
• New and used car dealership: Dealers with a manufacturer franchise agreement. Needs a facility of at least 1,000 square feet and equipment to service vehicles.
• Leasing dealership: Businesses that buy vehicles to lease them to customers. No display space or road sign is required, and brokering is not permitted.
• Boat dealership: Businesses that sell boats.
• Additional dealer registrations (converter, finance, insurer, leasing, manufacturer, non-conventional, transporter): Separate MVC registration applications for businesses in those roles. MVC's page lists them without describing eligibility.

Surety bond. Bond in favor of the State of New Jersey from a surety authorized to do business in the state, in the business name and address. It must not expire until March 31 of the year the license expires. Send the original bond (copies are not accepted) after MVC grants preliminary approval. The same amount applies to new and used dealers.

Insurance. Liability insurance covering all owned or fleet vehicles: $100,000 per person per incident up to $250,000 per incident for bodily injury or death, $25,000 per incident for property damage, and $250,000 combined, with a 30-day cancellation clause (N.J.A.C. 13:21-15.2(l) and MVC's application letter). The certificate must show the number of plates covered and is due at approval. MVC's application checklist lists $50,000 for property damage instead.

Place of business. A permanent, properly identified location in a permanent enclosed building with at least 72 square feet of office space (new car dealers need 1,000 square feet). A clearly identified display area for at least two vehicles, included in or immediately next to the premises. A permanent exterior sign legible from the roadway; banners are not allowed. A desk, chair, file cabinet, fixed safe, climate control, a landline telephone, and an email address monitored throughout the day. A deed, or a lease of at least 12 months (no month-to-month) that runs through the license expiration date. Municipal zoning approval on form BLS-162. You cannot use the premises of another licensed dealer or an allied business, and shared buildings need wall or firewall certifications (BLS-158). Unless open at least 48 hours a week between 9 a.m. and 5 p.m., Monday through Saturday, file business hours with at least 20 hours a week in that window. A follow-up compliance inspection can happen any time after 90 days, and failing it leads to revocation. Sales from unlicensed locations, call forwarding during business hours, and remote sales are grounds for suspension or revocation.

Background check. Every dealership must undergo a live scan criminal background check through the state's approved vendor. List each owner, partner, officer or member on the Fingerprint Request Notification form (BLS-163). MVC mails each person a fingerprint application and instructions; do not get fingerprinted before then. Processing does not start until all fingerprint receipts are received. Each authorized signatory must swear they have not been convicted of a crime arising out of fraud or misrepresentation and have not held a revoked MVC license. Out-of-state applicants must provide 6 points of ID.

Pre-license education. New Jersey does not require a pre-license course for this license.

1. Secure a location in an enclosed building with at least 72 square feet of office, a display area for at least two vehicles, a permanent exterior sign readable from the road, a landline, a file cabinet and a fixed safe.
2. Get a deed or a lease of at least 12 months (no month-to-month) that runs through the license expiration, and have the municipality sign the Municipal Approval Certificate (BLS-162).
3. Get your federal tax ID, business formation papers and a New Jersey sales tax Certificate of Authority.
4. Complete the used car dealer package: application (BLC-4), Applicant's Information (BLC-205B), child support form (BLS-43), Fingerprint Request Notification (BLS-163), business hours (BLS-19), signatories (BLS-20), and location type and walls (BLS-158).
5. Mail the package to the MVC Business Licensing Services Bureau in Trenton.
6. Get live scan fingerprints only after MVC mails you instructions, then send the receipts to MVC.
7. Attend the site investigation and prelicensure interview, where you are examined on New Jersey dealer laws.
8. After preliminary approval, send the $100 license fee, the $257.50 plate fee, the original $10,000 surety bond and the insurance certificate.

Official forms:

• Used Car Dealership License Application package (includes BLC-4, BLC-205B, BLS-43, BLS-163, BLS-19, BLS-20, BLS-162 and BLS-158), BLC-2
• New and Used Car Dealership License Application package (BLC-2)
• Fingerprint Request Notification Form (BLS-163)
• MVC Dealer Certification/Signature Card (BLS-20)
• Municipal Approval Certificate for Business License (BLS-162)
• Leasing Dealership License Application

No for a used or new car dealer: you need a clearly identified display area for at least two vehicles at or immediately next to the licensed office. Only a leasing dealer license is exempt from display space, and leasing dealers may only buy vehicles to lease them to customers.

MVC does not describe auction access. AuctionACCESS says its membership is restricted to licensed, credentialed vehicle dealers and their authorized representatives, so you need your New Jersey dealer license first.

MVC's pages do not describe renewal steps. N.J.S.A. 39:10-19 says a license expires 24 months after it is issued and is renewed on an MVC form with a $200 renewal fee. MVC requires the surety bond to run until March 31 of the year the license expires, a lease that covers the license term, and insurance renewed for the whole license term.

This is general information, not legal advice. Rules and fees change, so confirm the details with the New Jersey Motor Vehicle Commission (MVC), Business Licensing Services Bureau before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in New Jersey.