Dealer-related Information in New Jersey

2006 Legislation

The New Jersey Motor Vehicle Commission (MVC) has recently approved important amendments to the rules governing the way licensed auto dealers conduct business in the state. This was done to increase consumer protection and security and bring New Jersey's standards in line with those of neighboring states.

These amendments include:

  • Elimination of "phantom dealerships" and "accommodation addresses." This change holds licensed dealers accountable to consumers and law enforcement personnel through the MVC, the State Police, the New Jersey Division of Consumer Affairs, and the New Jersey Division of Taxation.
  • Improved tracking of controlled MVC documents, including dealer license plates, inspection stickers, and temporary license plates.
  • Provision of detailed procedures for disciplinary measures and remedies.

The Importance of Valid Titles

Dealers are reminded that they're prohibited from trading in motor vehicles without valid titles (except under certain limited circumstances). Realizing that it can be difficult to resolve liens and acquire proper titles, the state is exploring solutions to the problems dealers face.

The Lemon Law

This consumer-protection legislation was enacted by the state legislature as an aid to buyers when they purchase a new motor vehicle. New Jersey's Lemon Law clearly spells out what the buyer's rights are and the obligations of the manufacturer and the auto dealer as well.


Simply put, an auto lease is a long-term (more than 120 days) rental agreement to drive a vehicle someone else owns. When a customer leases a vehicle from you, you will set up a contractual agreement with that individual for routine maintenance (for example, tire rotation, oil filter and oil changes, and chassis lubrication). You will also negotiate the cost of the agreement at that time.


If you plan to advertise auto leasing on TV or in print, the law requires you to include these disclaimers:

  • That the transaction is, in fact, a lease.
  • The payment that is required as the lease begins, or a stipulation that no payment is required.
  • The number, amounts, and due dates (or periods) of scheduled payments, along with their total.
  • Your business name and address.
  • A toll-free number for the public to use when requesting more information from you.
DMV.ORG BBB Business Review