How many cars can you sell in New Jersey without a dealers license. In New Jersey, it is illegal to sell more than four vehicles per year without a dealer’s license. This is known as the “four car law”. Exemptions to this rule include selling a vehicle that is 7 years old or older, selling a vehicle that is not your primary source of income, or selling a vehicle that is inherited. It’s important to note that if you exceed the limit of four vehicles per year, you can be subject to penalties, fines, and legal action.
It’s always recommended to check with the New Jersey Motor Vehicle Commission (MVC) for the most up-to-date information and regulations on car dealerships and sales.
To apply for a car dealer’s license in New Jersey, you will need to meet certain requirements and follow certain steps. Here is a general overview of the process:
- Meet the eligibility requirements: You must be at least 18 years of age, have a valid driver’s license, and have a good driving record. You also must have a business location, which must be at least 600 square feet, have office hours that are open to the public, and have a phone listed with the local directory assistance.
- Obtain a surety bond: You are required to obtain a surety bond in the amount of $50,000, which is used to protect consumers from fraud or other unlawful acts.
- Pass a background check: You will need to pass a background check, which includes a fingerprint check and a criminal record check.
- Complete a Dealer Education and Training Program: You will need to complete a Dealer Education and Training Program, which is a 16-hour course that covers the laws and regulations related to car dealership operations.
- Obtain a license plate: You will need to obtain a license plate that is used for test-driving vehicles.
- Submit an application: Once you have met all of the requirements, you can submit an application to the New Jersey Motor Vehicle Commission (MVC) for a car dealer’s license. The application must include a copy of the lease or deed of the business location, a copy of the NJ Sales and Use Tax Certificate and a copy of the surety bond.
- Pay the fee: There is a fee to apply for a car dealer’s license in New Jersey, and it varies depending on the type of dealership you are applying for.
Is buying and selling cars in New Jersey a good business
It’s always recommended to check with the New Jersey Motor Vehicle Commission (MVC) for the most up-to-date information and regulations on car dealerships and licensing, as well as the fees associated with the process.
Buying and selling cars can be a good business in New Jersey, as long as it is done legally and ethically. The state has a large population and many people are in need of cars for transportation.
However, as in any business, there are also challenges and risks. The used car market can be very competitive, and it can be difficult to make a profit if you are not able to find cars at a low enough price and sell them at a high enough price. There’s also the competition from big dealerships and CarMax, which have a large inventory and can offer a wide range of financing options.
Additionally, running a dealership comes with a lot of regulations, which can be costly and time-consuming to comply with. It’s important to stay up-to-date with the laws, regulations, and consumer protection rules, and to be prepared to invest in your business in order to meet those requirements.
Before starting a dealership, it’s important to thoroughly research the market, the competition and the regulations, as well as to make sure you have the necessary knowledge, skills, and resources to run a successful business. Additionally, it’s important to have a solid business plan that outlines your goals, target market, and strategies for success.