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New Jersey Auto Dealer Bond

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What is a New Jersey Auto Dealer Bond?

A requirement for obtaining a license as an auto dealer in New Jersey is securing a New Jersey auto dealer bond. As a type of surety bond, a New Jersey auto dealer bond safeguards customers from fraudulent or illegal practices when doing business with a dealership. A claim can be made against a bond if a customer experiences financial damages, up to the amount of the bond in place.

A New Jersey auto dealer bond is a three-party contract connecting the principal required to post the bond, the surety company providing the bond, and the obligee, the New Jersey Motor Vehicle Commission, that requires the bond.

What Does a New Jersey Auto Dealer Bond Cost?

A surety bond functions like a line of credit to a licensed auto dealer. When a claim is found to be legitimate, the surety company pays the claim amount. However, the dealership is responsible for repaying the claim. This structure means that personal credit plays a major role in determining the price of a bond. Auto dealers with a low credit score or a negative credit history pay higher for a New Jersey auto dealer bond than dealers who have a healthy credit history.

In New Jersey, an auto dealer bond of at least $10,000 is required as part of obtaining a dealer bond. The surety company calculates the price you pay as a percentage of the total bond amount, ranging from 1 to 3% for dealers with strong credit. A New Jersey auto dealer bond for someone with a lower credit score can cost between 5 and 10% of the bond total.

How Do I Get a New Jersey Auto Dealer Bond?

You can submit a short online form to get a New Jersey auto dealer bond, providing details of your business and your personal credit history. The surety company reviews this information and gives you a quote for the bond along with how to complete the bonding process.


Frequent Questions

What does an auto dealer bond cost?

Costs are a percentage of the bond amount that's required of you, which is based on your personal credit. Use our bond pricing tool to get a quick ballpark estimate.

Can I get a bond with bad credit?

Yes. You can get you approved for a bond regardless of your credit situation. However, the price will increase. You can apply to get an instant approval. As the largest writer of surety bonds in the U.S., we have access to high risk markets that many other agencies do not.

How long does the application take?

It only takes minutes, as we can approve you for your bond instantly online. You can get a no obligation quote on our website at any time.

Can I get auto dealer bond insurance to protect myself?

No. An auto dealer bond does not protect you, it protects the public. However, you can protect yourself or your customers by getting fidelity bonds.


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Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
David Tillotson
Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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