Classic Car Dealers in New Jersey

In New Jersey the Motor Vehicle Commission (MVC) issues the title, and a private buyer pays the 6.625% sales tax to the MVC when the car is titled. Two more things settle most classic purchases: the state's historic plate rules, which are strict about use and originality, and an inspection exemption that already covers most cars built in 1995 or earlier.

Titling the car

A title transfer must be completed within 10 working days of the sale, or the MVC adds a $25 penalty to the $60 title fee ($85 or $110 if the car is financed). Transfers are done in person at an MVC vehicle center by appointment, not by mail. Buying from a private seller, the seller signs the back of the title and gives you the title and a bill of sale showing your name and address, the date, the odometer reading and the price. You sign the buyer section, then take the title, ID, proof of New Jersey insurance and registration form BA-49 to the agency. Buying from a New Jersey dealer, the dealer handles the title and registration.

Plates stay with the seller, who surrenders them or moves them to another vehicle, so you receive plates of your own. A car last registered elsewhere is titled with the out-of-state title properly assigned to you and the MVC's Universal Title Application. If it came from a state that does not issue titles, the MVC asks for a tracing or photo of the VIN plate, the seller's notarized statement of year, make, VIN and price, and the seller's last registration. New residents have 60 days to move their title and registration to New Jersey.

A bill of sale alone is not the document the MVC asks for. The MVC publishes a duplicate title process for a seller who has lost the title of a car previously registered in New Jersey, which involves a registration search, a title application, photographs and a $60 fee, so the owner should complete it before the sale.

Historic plates and collector status

• Historic (QQ) plates are for cars at least 25 years old that are owned as collector's items and used solely for exhibition or educational purposes. The car must keep its original manufacturer design; hood scoops, side pipes, missing fenders or missing parts are reasons for rejection. The fee is $44 and the registration renews every three years at no charge. You apply on form SP-121 with two color photos and a copy of the New Jersey title.
• Street rod plates cost $15 and are for modified antique cars built before 1949 whose owners belong to a New Jersey street rod club or an NSRA affiliate.
• Collector vehicle status is a separate program for limited-production cars less than 25 years old, driven no more than 3,000 miles a year and insured as limited-use collectors. It needs an MVC approval letter and a $25 voucher for an inspection-exempt decal.

Inspections and emissions

Passenger cars are inspected every two years, and the test is for emissions. Gasoline passenger vehicles of model year 1995 and older (8,500 lb GVWR or less) are exempt, as are historic vehicles with QQ plates and approved collector vehicles. Diesel passenger vehicles of model year 1996 and older are exempt too. A car from 1996 or later without historic plates is inspected, so check the model year before you buy.

Sales tax

• The rate is 6.625% of the purchase price on new and used vehicles, one statewide rate with no county add-on.
• Private sales are taxed too. You pay the MVC at titling, and the Division of Taxation may send a questionnaire and assess tax on book value if you cannot document a lower price.
• A trade-in reduces the taxable price only when you trade a vehicle to a registered dealer in the same transaction, so a private sale gets no trade-in credit. Dealer documentary fees are taxable, while MVC title and registration fees are not.
• Buying out of state and titling in New Jersey, use tax is due. Tax paid to the other state is credited when you bought and took delivery there, but not when the car was delivered to New Jersey.

Dealers, private sellers and warranties

The MVC licenses dealerships. New Jersey's Used Car Lemon Law requires a dealer warranty only on cars sold for more than $3,000 that are seven model years old or less with 100,000 miles or less, so a classic is outside it. Cars sold "as is" carry no warranty, a dealer must post a Buyer's Guide, and a signed contract cannot be cancelled within three days. Private sales carry no warranty at all. A salvage title must be inspected before the title can be restored, so ask for the title history before you pay.

Sources: New Jersey Motor Vehicle Commission (titles, transferring ownership, registration, historic plates, collector vehicles, inspections, salvage), New Jersey Division of Taxation (casual sales, consumer automotive tax guide, use tax) and the Division of Consumer Affairs (Used Car Lemon Law, tips on buying a used car). Rules and fees change; confirm with the MVC before you buy.