Typical Premium
$100–$500/yr
Required By
NJ Motor Vehicle Commission (MVC)
What Is the New Jersey Used Motor Vehicle Dealer Bond?
New Jersey's MVC requires a $10,000 dealer bond as a condition of every ULM (Used License - Motor vehicle) license. The bond protects:
- Retail buyers harmed by failure to transfer title within 30 days
- Lienholders for unsatisfied liens on traded vehicles
- The State of New Jersey for unremitted sales tax
- Parties harmed by misrepresentation or undisclosed defects
The bond is filed on MVC form OS/DEAL-9 and runs continuously until canceled by either party with proper notice.
Who Needs This Bond in New Jersey?
- Used motor vehicle dealers (ULM) — most common license
- Wholesale used dealers
- Auctions selling motor vehicles to dealers or the public
- Salvage dealers selling reconstructed or junk vehicles
New-vehicle (franchise) dealers in NJ are licensed differently and have different bond requirements; ULM applies specifically to used-vehicle operations.
How Much Will the Bond Cost?
New Jersey's modest bond amount keeps premiums low. Most dealers pay $100–$200 annually:
| Credit Profile | Annual Premium | Approx. Rate |
|---|
| Excellent Credit | $100 | Min premium |
| Good Credit | $100 – $200 | 1% – 2% |
| Fair Credit | $200 – $300 | 2% – 3% |
| Credit Challenges | $300 – $400 | 3% – 4% |
| Past Credit Issues | $400 – $500+ | 4% – 5%+ |
How to Get Bonded — Step by Step
- Secure a permanent business location meeting NJ MVC's lot-size and signage requirements.
- Obtain MVC dealer plates and forms.
- Apply for the bond — instant approval common.
- Submit ULM application with bond, garage liability proof, and zoning approval.
- MVC inspector site visit before license is issued.
Renewal & Continuous Bond Coverage
NJ used dealer bonds are continuous — they remain in force until canceled. Premium is billed annually. The MVC verifies bond status on every license renewal; lapses result in license suspension within 30 days.
Frequently Asked Questions
Does the bond cover sales-tax violations?
Yes — the State of New Jersey can claim against the bond for sales tax collected and not remitted. NJ MVC and Treasury cross-reference dealer reports.
How is wholesale-only different from retail in NJ?
Same $10,000 bond, but wholesalers don't sell to consumers. Wholesale claims usually come from other dealers or auctions, not retail buyers.
Can I keep the same bond if I move my dealership?
Generally yes, with a notice of address change to the surety. The MVC must approve any new location, and a fresh inspection may be required.
What's the most common claim against NJ used dealer bonds?
Title delivery delays and undisclosed prior damage. The Lemon Law applies primarily to new vehicles, but consumer claims for material misrepresentation are common.
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Related: All New Jersey surety bonds ·
What is a surety bond? ·
How surety bond costs are calculated
Underwriting Disclosure.
All surety bond applications are subject to underwriting review and approval by the issuing surety company. Quoted premiums are estimates only; final pricing is determined by individual underwriting factors, which may include personal and business credit history, financial statements, industry experience, and claims history. Many bonds qualify for instant online approval, while others may require additional documentation, financial review, or indemnitor signatures prior to issuance. SuretyBondly makes no representation, warranty, or guarantee of approval, eligibility, premium amount, bond form, or issuance timing. Bond amounts, forms, and requirements are governed by the applicable obligee and statutory authority and may change without notice. Information provided on this page is for general informational purposes only and does not constitute legal, financial, or tax advice.