Having a thorough grasp of how to purchase a vehicle in New Jersey extends beyond mere legal compliance. It involves protecting investments and facilitating a seamless transaction process. By familiarizing themselves with the state's regulations and procedures, buyers can gain substantial advantages.
For example, they can confidently rely on warranty protections offered by licensed dealerships, which offer more security than private sellers. This knowledge also extends to comprehending insurance requirements that promote both road safety and financial security in the event of accidents.
Moreover, the awareness of fees such as registration, titling, and sales tax allows buyers to budget effectively and avoid unexpected costs.
This holistic approach boosts buyer confidence and ensures that every aspect of the transaction—from selecting a reputable dealership to understanding insurance obligations and financial implications—is managed with clarity and foresight.
What Is the Process for Buying a Car in New Jersey?
Buyers in New Jersey can opt to purchase vehicles from private sellers or licensed dealerships. Buying from private sellers may offer lower prices but involves risks such as undisclosed issues and fewer legal protections.
In contrast, licensed dealerships offer a structured process, warranty options, and enhanced transparency, promoting compliance and instilling consumer confidence.
Buying a Vehicle from a Private Seller
Due to the risks associated with private transactions, buyers must be aware of the following regulations, requirements, and considerations when purchasing a vehicle from a private seller in New Jersey.
Title Verification
When buyers purchase a vehicle from a private seller in New Jersey, verifying the vehicle's title is fundamental. The New Jersey Motor Vehicle Commission (NJ MVC) offers a Title/Lien Search Request(Form DO-22) specifically for this purpose.
To initiate the process, buyers must complete both pages 1 and 2 of Form DO-22. They should print the form on both sides of a single sheet or use two separate sheets. They must provide the vehicle identification number (VIN) and their contact information.
Additionally, they must include a copy of their driver's license and a $15 check or money order payable to the NJ MVC. These documents should be mailed to:
New Jersey Motor Vehicle Commission
Certified Information Unit
225 E. State Street
P.O. Box 146
Trenton, NJ 08666-0146
Buyers must submit a separate request for each vehicle and verify that all required documents are enclosed to ensure prompt processing.
VIN Check and Vehicle History Report
To guarantee a secure purchase from a private seller in New Jersey, buyers must conduct a thorough VIN check and obtain a detailed vehicle history report. This report includes crucial information like the vehicle's year of production, make, model, engine specifications, transmission type, and even photos.
Additionally, it covers sales history, governmental data, odometer readings, accident history, and recalls. A vehicle history report can provide essential information about salvage or rebuilt vehicles. This includes the vehicle's past damage, repairs, and any associated title branding.
By providing comprehensive insights into the vehicle's background, condition, safety, and reliability, it helps buyers make informed decisions and avoid potential issues after purchase.
Buyers can obtain reliable and up-to-date vehicle history reports through the National Motor Vehicle Title Information System or authorized third-party providers like VINCheckPro, TitleCheck, and VINAudit.
Odometer Disclosure
Potential buyers of used vehicles heavily depend on odometer readings to accurately assess their condition and value. Odometer fraud, where readings are illegally adjusted to enhance a vehicle's apparent appeal, deceives buyers and violates the law.
NJ MVC regulations mandate precise odometer recording on vehicle titles to prevent such fraud. If space is inadequate or discrepancies occur, sellers must complete an Odometer Disclosure Statement (Form OS/SS-2).
This requirement applies to vehicles under 16,000 pounds and self-propelled from 2011 onwards. Exempt from this requirement are vehicles from 2010 or older, those over 16,000 pounds, low-speed vehicles, non-motorized vehicles, mopeds, and scooters.
Ownership/Title Transfer and Registration
In New Jersey, transferring ownership and registering a vehicle requires specific procedures and documentation. For used cars, buyers must complete the process at any NJ MVC office within ten business days of purchase to avoid a $25 penalty.
Essential documents include the properly assigned vehicle title with the names, addresses, and signatures of both seller and buyer, the sale date, purchase price, and the buyer's driver's license number. A bill of sale is necessary if the title does not include the purchase price or date.
Additionally, the buyer must present their actual driver's license or any identification that meets New Jersey's 6-point ID requirements, proof of New Jersey insurance (either the insurance card or the company name and policy number), and a completed Application for Vehicle Registration (Form BA-49).
If the vehicle is leased or financed, further documentation is required, such as the lienholder's information and a completed Universal Title Application (Form OS/SS-UTA) or any financing statement. In cases where a company or business is purchasing the vehicle, an Entity Identification Number (EIN) must be provided to the NJ MVC.
Buyers also need to pay the applicable registration, titling, and sales tax fees. Depending on whether the state issues vehicle titles, additional documents may be necessary for used vehicles originating from other states.
The process for new vehicles follows similar registration and titling procedures as for used vehicles. However, an additional document, the Manufacturer's Certificate of Origin (MCO) with a sales tax-satisfied stamp, is required.
License Plates
Once registration and ownership transfer are finalized, buyers can obtain new license plates from the NJ MVC. They may opt to transfer their old vehicle's license plate to the new one, provided both vehicles are registered under the same name and class.
This process requires a visit to a local NJ MVC office, where the seller must present the new vehicle's title and registration along with proper identification. Moreover, sellers must surrender the license plates of vehicles sold if they are no longer in use.
Buying a Vehicle from a Dealership
Buying vehicles from licensed dealerships in New Jersey provides legal protections under state laws such as the Consumer Fraud Act (CFA) and the Used Car Lemon Law. These laws require clear sales contracts detailing vehicle pricing, warranties, and financing terms to prevent deception.
The Used Car Lemon Law mandates warranties on eligible used vehicles to address defects within specific limits. Furthermore, licensed dealerships must comply with rigorous licensing regulations to enhance consumer trust and protection.
Licensed Dealer Check
Verifying a dealership's license in New Jersey before purchasing a car is vital for buyers to avoid risks such as legal repercussions due to non-compliance, potential warranty issues, financial scams or deceptive pricing practices, and difficulties with vehicle registration or title transfers.
The NJ MVC maintains an up-to-date registry of licensed dealerships to enable consumers to quickly verify a dealer's legitimacy. Buyers can confirm a dealer's license by requesting dealership information from the NJ MVC's Official Custodian of Records using the following mailing address:
Official Custodian of Records
Motor Vehicle Commission
ATTN: Regulatory and Legislative Affairs
225 East State Street
P.O. Box 162
Trenton, NJ 08666-0162
Sales Contract
A sales contract when purchasing a vehicle from a licensed dealer in New Jersey is essential for legal clarity and protection. This contract outlines critical information such as the vehicle's price, warranties, financing terms, and the obligations of both the buyer and the dealer.
In New Jersey, regulations require that all aspects of the sale, including price and warranties, be explicitly stated in the sales contract. This transparency protects consumers from deceptive practices and promotes a fair transaction. The dealer is responsible for preparing the contract and must include all necessary details for the proper transfer of ownership.
Warranty Protection
One significant benefit of purchasing cars from licensed dealers in New Jersey is the robust warranty protection offered by state laws.
Under the CFA, buyers purchasing cars from licensed dealers are protected against deceptive practices. It mandates that dealers provide accurate and transparent information about the vehicle's condition and history.
Buyers benefit from warranties, both express (clearly stated) and implied (assuring the vehicle's fitness for normal use), which guarantee the vehicle is free from significant defects.
Should a defect arise, dealers are obligated to repair it, refund the purchase price, or replace the vehicle. These measures help buyers in New Jersey receive reliable vehicles and fair treatment throughout their car purchases.
Lemon Law in New Jersey
The New Jersey Lemon Law protects consumers who buy or lease new and used vehicles registered in New Jersey, excluding motor home living quarters.
Eligible consumers include buyers, lessees, and those enforcing warranty terms during the warranty period. Defects must be reported within 24,000 miles or two years from the vehicle's delivery. Claims must be filed within four years of defect discovery under the Uniform Commercial Code's statute of limitations.
Manufacturers must repair defects within the initial 24,000 miles or two years. If unsuccessful after three attempts or 20 cumulative days out of service, or if a defect persists and is likely to cause death or serious injury, consumers must notify the manufacturer by certified mail.
If repairs fail, the manufacturer must offer a replacement or refund covering purchase costs minus a reasonable allowance for vehicle use. If the manufacturer fails to comply, consumers can pursue legal action or use arbitration. Successful claims may include reimbursement for legal and expert fees.
Furthermore, returned vehicles cannot be resold in New Jersey without disclosure, and buyers must receive written notice of nonconformity rights at purchase or lease. Any agreement waiving these rights is void and unenforceable.
Used Car Lemon Law in New Jersey
The New Jersey Used Car Lemon Law also provides safeguards specifically for used car buyers. If a used car has less than 100,000 miles and costs at least $3,000, dealers must provide a warranty. Based on odometer readings at the time of purchase, the warranty durations are:
- Vehicles with up to 24,000 miles: 90 days or 3,000 miles
- Vehicles with 24,000 to 60,000 miles: 60 days or 2,000 miles
- Vehicles with 60,000 to 100,000 miles: 30 days or 1,000 miles
During this period, dealers must repair any defect that impairs the car's functionality, value, or safety. However, exemptions apply to vehicles sold "as is," those over seven years old, declared total losses by insurers, or with odometers exceeding 100,000 miles.
Consumers can seek a replacement vehicle or a refund minus allowable deductions if defects persist despite reasonable repair attempts.
What Are the Fees for Buying a Car in New Jersey?
Buyers should be well-informed about the expenses associated with purchasing vehicles in New Jersey, including registration fees, titling fees, sales tax calculations, and a one-time surcharge for specific vehicle types, to facilitate better financial planning.
Registration Fees
In New Jersey, vehicle registration fees vary based on factors such as the vehicle's type, weight, and age. For instance, passenger cars weighing under 2,700 pounds and manufactured before 1970 are charged $35.50.
Commuter vans have fees of $71.50 if older than two years or $84 if newer. Non-commercial vehicles like private utility semi-trailers, mopeds, and historic vehicles range from $18 to $94 in fees.
Meanwhile, snowmobile registration costs $24 for residents and $28 for non-residents, while ATV registration costs $34 for residents and $38 for non-residents.
Additional Costs to Registration Fees
In addition to standard registration fees, there are several supplementary charges under specific circumstances.
Registration Transfer
When transferring vehicle registration in New Jersey, there is a $4.50 transfer fee. If the vehicle's weight class changes during the transfer, an additional prorated increase in the registration fee may apply.
Registration Documentation Replacement
Duplicate registration fees in New Mexico vary, with $5 charged for boat decals and one-year registrations, while four-year accelerated registrations cost $5 in the final year or $11 within the first three years.
Titling Fees
Titling fees vary based on the vehicle's situation. Standard vehicles are subject to a $60 titling fee. For financed vehicles with one lien, the fee increases to $85. For those with two liens, it rises to $110.
Sales Tax
In New Jersey, a 6.625% sales tax is applied to new and used vehicle purchases. The tax is calculated by multiplying the final taxable amount by 0.06625. If a trade-in is involved, the trade-in value is subtracted from the new vehicle's price, and the sales tax is calculated on this reduced amount.
Luxury and Fuel Inefficient Surcharge (LFIS)
New Jersey imposes a one-time 0.4% Luxury and Fuel-Inefficient Vehicle Surcharge on the purchase price of certain new high-value or fuel-inefficient vehicles.
This surcharge applies when the gross sales/lease price of the vehicle is $45,000 or more before deductions such as trade-ins, rebates, or additional person(s) with a disability driver adaptive equipment.
Alternatively, it applies if the vehicle has an average Environmental Protection Agency (EPA) mile-per-gallon rating below 19.
What Are the Insurance Requirements for Vehicles in New Jersey?
New Jersey's auto insurance regulations are implemented to enhance driver safety and guarantee all motorists maintain the minimum required coverage. As outlined in the New Jersey Revised Statutes Title 39:6A-3 and Title 39:6B-1, every driver must carry a minimum amount of property damage liability and personal injury protection (PIP) insurance.
Additionally, the New Jersey Statutes Annotated (NJSA) 39:6A-4 specifies that, as a no-fault insurance state, drivers in New Jersey must have no-fault car insurance to cover medical expenses regardless of fault in an accident.
Drivers must also carry proof of insurance at all times, which can be electronic ID cards or physical documentation, per NJSA 39:3-29. These regulations ensure drivers in New Jersey are protected and financially responsible for accidents.
Minimum Insurance Coverage Requirements in New Jersey
New Jersey mandates that all registered vehicles carry three types of insurance: liability insurance, PIP, and uninsured motorist coverage.
Liability Insurance
Liability insurance compensates others for damages caused by the policyholder if they are responsible for an accident. It does not cover policyholder medical expenses. The minimum requirements for liability insurance in New Jersey are:
- Bodily injury per person: $25,000
- Bodily injury per accident: $50,00
- Property damage per accident: $25,000
Personal Injury Protection
PIP coverage, or no-fault coverage, pays for medical expenses incurred by the policyholder and other covered individuals, irrespective of fault. The required minimum PIP coverage limit is $15,000.
Uninsured Motorist Coverage
This coverage protects the policyholder if involved in an accident with a driver without adequate insurance. Here is the minimum uninsured motorist coverage required in New Jersey:
- Uninsured/underinsured motorist coverage for bodily injury per person: $25,000
- Uninsured/underinsured motorist coverage for bodily injury per accident: $50,000
Starting January 1, 2026, the minimum limits for bodily injury liability and uninsured motorists will increase from 25/50/25 to 35/70/25.
- Liability coverage for bodily injury per person: $35,000
- Liability coverage for bodily injury per accident: $70,000
- Uninsured/underinsured motorist coverage for bodily injury per person: $35,000
- Uninsured/underinsured motorist coverage for bodily injury per accident: $70,000
Penalties for Insurance Violations
Driving without insurance in New Jersey results in severe penalties, escalating with repeated offenses. A first offense can lead to fines ranging from $300 to $1,000 and a one-year license suspension.
Subsequent offenses carry harsher penalties, including fines up to $5,000, a two-year license suspension, 14 days in jail, and 30 days of community service. Additionally, a $100 fee is required for license reinstatement.
Involvement in an accident without insurance is a grave violation, attracting fines, community service, license suspension, and potential jail time. Moreover, the uninsured driver is financially liable for all damages caused.
New Jersey also enforces strict laws against insurance fraud, with severe consequences for providing false information during claims or policy applications, including up to $15,000 in fines per fraud incident and possible jail time.
Can a Non-Resident Buy a Car in New Jersey?
Non-residents can purchase a vehicle in New Jersey, but if they intend to transport the vehicle to their home state, they must obtain a temporary New Jersey registration.
This temporary registration is necessary to legally drive the vehicle in New Jersey or transport it outside the state's borders. To obtain temporary non-resident registration, they must visit a local NJ MVC office and complete a Form BA-49.
Other required documents include the original New Jersey Certificate of Title reflecting their out-of-state address, proof of address, proof of insurance for the vehicle, a $5 registration fee, and appropriate identification, such as an out-of-state driver's license or non-driver ID card.
Once approved, they will receive a 30-day temporary registration valid only within the U.S.