How To Open An Auto Business & Get A Car Sales License In NJ
It’s absolutely illegal to buy and sell automobiles privately without a dealer license anywhere in the US. Different states have different requirements for issuing an auto dealer license. Meeting up to par with these set standards is, therefore, a necessity. New Jersey is not out of the picture. To start an NJ car sales company is quite more relaxed than you may think. In like manner, the requirements to maintain the licensure in NJ are very attainable. The enormous push to get a dealer license comes from avoiding the horrible headache the IRS would surely give you if you do not have one. Your local new car sales company is here to assist you through the whole process. A seamless experience is undoubtedly what you will get at the end.
Who Issues The Dealers’ License?
In New Jersey, an auto dealer license is issued by the state Motor Vehicle Commission, New Jersey Motor Vehicle Commission (NJMVC). To successfully open and run an auto dealer company in New Jersey, the approval of this body is indispensable. Also, they head nod to your business is the first step in the direction of getting insurance and becoming bonded.
The general procedure to get this approval is outlined in a way to be very accessible to all intending auto dealers. You might as well visit the online page of the NJMVC, download the application form, fill it, and submit the forms. You can mail it back to their address;
New Jersey Motor Vehicle Commission
Business Licensing Services Bureau
P.O. Box 170
225 East State Street
Trenton, NJ 08666-0170
Aside from filling the needful information in the form, there are some fees you need to make. We will get to that soon.
Types Of Dealership License
The New Jersey Motor Vehicle Commission offers numerous different forms of dealership licenses. They include;
- New and used car dealership
- Used car dealership
- Leasing dealership
- Boat dealership
Step By Step Guide To Getting Your NJ Auto Dealer License
- Get A Permanent Business Address
Just like starting any other business, the business owner needs to establish a business address. Before you run to the NJMVC for your dealer license, you ought to have a permanent place of business. Your company site must meet up to the following standards.
Although a leasing license is not explicitly required to have display space. However, your showroom should be able to host not less than two vehicles.
Also, you’ll be needing an office with the necessary office paraphernalia such as an office desk and chair, landline telephone, a computer system, and a working safe to store motor vehicle documents.
Finally, any form of an advert in the form of exterior signs tightly secure to your business building or land, in line with the local regulations, could give your new business an attractive first impression.
- Know The Right Auto Dealer License
Before you fill an application for auto dealer business, you need to know all the types of licenses the motor vehicle commission in NJ has on their shelves. Ensure to contact you local car dealer for head-up on the right auto dealer license because knowing this is a right step in the track of getting your permit.
- Submit Your Initial Auto Dealer Application
In compliance with the tax laws prevalent in New Jersey, you must register your new business at approximately 15 days before the launch of the company. You should apply to the New Jersey Treasury and Revenue Department. This will come very handy anytime.
Also, you need to get the Federal Employer Identification Number (FEIN) registration certificate from them as well. All these processes are made so accessible from the online set of the concerned body, NJ-REG.
- Prepare The Required Documents
All types of auto dealership license obtainable from the NJ-MVC office have similar requirements in paperwork. For you to be an approved dealer in New Jersey, you need to possess the following documents.
- Information on every owner, partner, member or corporate officers of the dealership
- A listing of all authorized signatories
- Verification of employment status for all listed employees
- Passport size color photographs of all of the above with each individual’s name on the reverse side of the photograph
- Copies of the driver’s licenses of all individuals participating in the application
- Photos of premises and business signatories
- A copy of alternate/fictitious name filing certificate
- Copy of plans of premises
- Copy of property deed, lease or purchase agreement
- Transcript of a phone bill for landline
- Copy of Federal EIN Registration Certificate
- Copy of New Jersey Sales Tax Certificate of Authority
- Information on Business hours
- Original Certificate of Liability Insurance
- Original auto dealer Surety Bond
- Original vehicle manufacturer certificate (only for new auto dealer business
Mail The Dealer License Application
Whether you want to lease a BMW car or sell any Jeep car models in NJ, saddled with the knowledge of the basic requirements to obtaining licensure, you can confidently go to the NJMVC website and download their application form. The form also contains all the supporting documents, as listed above. Carefully fill out the application form and gathered all the needed paperwork. Take time to review the whole papers. Mail them to the New Jersey Motor Vehicle Commission.
After filing your application, the commission will send an agent to come and carry out due inspection on your business site. You must understand that the NJ auto lease licenses are valid for only but a year. The renewal process is much more straightforward than obtaining a permit for the first time.
Of course, there is a little token that you will have to pay to the New Jersey-MVC. Every new car sales company is expected to pay $257.50 as a registration fee. The dealer license costs $100 irrespective if you want to lease a jeep or a BMW model. This fee, together with the certificate of insurance and surety bond is to be finalized after approval by the commission.