The Do's and Don'ts for NJ Used Car Dealers

Maintain a proper licensed location and setup

Operate only from an established place of business, meaning a permanent building with the required office space, office equipment, phone, document safe, exterior signage, display space, books and records, and supporting application materials.

• Maintain at least 72 square feet of office space, desk, chair, landline phone, working safe for documents, exterior signage visible from the road per local ordinances, and space to display at least two vehicles.
• Keep books and records on-site.
• Submit a full application with a deed or lease of at least 12 months, sales tax ID, required insurance (including $100,000/$250,000 bodily injury), a $10,000 surety bond, fingerprints and background checks, and municipal approval.

Provide mandatory Used Car Lemon Law warranty or proper waiver

For qualifying used passenger vehicles, provide the required written warranty or obtain a proper separately signed waiver where allowed.

• Qualifying vehicles generally include used passenger vehicles less than seven model years old, with 100,000 miles or fewer, sold for more than $3,000, and not a total loss.
• Minimum warranty periods are based on mileage: 90 days/3,000 miles for vehicles with 24,000 miles or fewer; 60 days/2,000 miles for vehicles above 24,000 and up to 60,000 miles; and 30 days/1,000 miles for vehicles above 60,000 and up to 100,000 miles.
• Repair covered defects that substantially impair use, value, or safety, or provide the required refund.
• Waivers are allowed only if separately signed and stated in the contract.

Handle NJ registration and inspection obligations

For any used vehicle intended for New Jersey registration, ensure the vehicle can pass New Jersey inspection, including emissions, or make or pay for required repairs at no charge to the buyer unless there is a valid waiver.

• If a buyer waives inspection-related obligations, the waiver must be separately signed in the contract.
• Disclose known defects impacting inspection.
• Include the inspection obligation in the retail order form.

Display FTC Buyer's Guide and provide disclosures

Post the federal Used Car Buyer's Guide prominently on or in every vehicle before sale or inspection, and provide required warranty, odometer, prior damage, and defect disclosures.

• Disclose warranty terms or as-is status.
• Disclose any remaining manufacturer warranty and extended service contract availability.
• Provide odometer disclosure statement.
• Disclose known prior damage or repairs over $1,000 and known mechanical defects.

Follow strict advertising rules

Advertising must include required dealer, vehicle, price, odometer, VIN, prior-use, and condition information and must not mislead consumers.

• Include dealer name and address.
• State that prices include all costs except licensing, registration, and taxes.
• Include year, make, model, engine cylinders, transmission, brakes, steering, air conditioning details, last eight VIN digits where required, actual odometer reading as of the ad date, and prior use if known.
• Keep advertised vehicles available at the advertised price or maintain the required advertising records.
• On-site, post the ad copy or price tag with the Buyer's Guide.

Use temporary registrations and dealer plates properly

Issue temporary registrations only for bona fide retail sales or leases with proper title documents, insurance proof, and other eligibility requirements. Use dealer plates only as permitted.

• Maintain detailed plate records for at least three years.
• Affix plates only to inventory for demonstration or sale.
• Use the eTemp program and approved stock when required.
• Meet applicable sales volume thresholds before issuing temporary registrations or using dealer plate privileges.

Keep accurate records

Retain sales contracts, odometer statements, warranties, advertisements, plate records, and temporary tag records for the required periods and produce them on demand.

• Keep sales, odometer, warranty, plate, and temporary-tag records for at least three years.
• Keep advertising records for at least 180 days where required.
• Produce records when requested by MVC or Consumer Affairs.

Sell as-is only with a clear waiver

Where an as-is sale is permitted, obtain the required signed waiver and still provide the Buyer's Guide stating the as-is status.

Do not operate without a license or from an improper location

• Do not deal, sell, negotiate, or conduct internet sales activity from unlicensed or remote locations.
• Do not use virtual offices, call forwarding, mail forwarding, or answering services during business hours in place of the licensed location.
• Do not broker vehicles through third-party motor vehicle brokers.
• Do not sell or display vehicles outside the licensed premises except where specifically permitted by law; doing so may be treated as conclusive evidence of a violation.

Do not misrepresent vehicle condition or history

• Do not alter odometers or VINs.
• Do not fail to disclose known mechanical defects, known prior damage over $1,000, or odometer issues.
• Do not misrepresent mechanical condition, warranty terms, or prior use.

Do not violate advertising prohibitions

• Do not engage in bait-and-switch advertising.
• Do not refuse to sell at an advertised price without required records.
• Do not use misleading fine print, obscured disclaimers, false free offers, unsubstantiated lowest-price claims, or terms such as public notice or factory outlet unless true.
• Do not omit required advertising disclosures.

Do not skip or mishandle warranties, inspections, or disclosures

• Do not sell qualifying used cars without the required Lemon Law warranty or valid waiver.
• Do not fail to repair inspection defects or return the purchase price where required.
• Do not sell without the Buyer's Guide or proper disclosures.

Do not misuse plates, temporary tags, or documents

• Do not lend plates or temporary tags.
• Do not use dealer plates on non-inventory vehicles except where limited demonstration rules apply.
• Do not issue temporary tags without a bona fide sale, insurance proof, and required documentation.
• Do not alter temporary registrations or issue them to non-qualifying buyers.

Do not engage in fraud or deceptive acts

• Do not issue dishonored checks for reasons within the dealer control.
• Do not leave valid judgments unsatisfied for 90 or more days.
• Do not associate with or permit control by persons who are not proper persons under dealer licensing rules.
• Do not require financing or add-ons to obtain an advertised price without clear disclosure.

Do not ignore recordkeeping or MVC property obligations

• Do not fail to account for plates, temporary tags, reassignments, or other MVC property.
• Upon license action or voluntary surrender, immediately return MVC property and account for any missing items.