Nebraska Motor Vehicle Dealer Bond Overview
- Purpose: To protect the public from dishonesty and dealer license violations
- Who Needs It: All motor vehicle dealers in Nebraska, including auction dealers
- Regulating Body: The Nebraska Motor Vehicle Industry Licensing Board
- Bond Amount: $50,000; $100,000 for auction dealers
- Minimum Price: $250 or 0.5% of the bond amount
What Is a Nebraska Motor Vehicle Dealer Bond?
A Nebraska motor vehicle dealer bond is a financial guarantee that dealers will operate legally. It serves as a safety net for clients and the state if a dealer causes financial harm.
Under Nebraska Revised Statute 60-1419, all motor vehicle, trailer, wholesale, and motorcycle dealers need to file a $50,000 surety bond. Auction dealers need a $100,000 bond.
How Much Do Dealer Bonds Cost in Nebraska?
The $50,000 Nebraska car dealer bond starts at just $250 for qualified applicants. Exact rates will vary based on a soft credit preview.
If you are an auction dealer and need the $100,000 bond, rates start at $1,000–$1,500. Apply to get your free quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Nebraska Motor Vehicle Dealer Bond Work?
A motor vehicle dealer bond creates a financial contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The dealer filing the bond with the obligee |
| 2) Obligee | The Nebraska Motor Vehicle Industry Licensing Board |
| 3) Surety | The issuing provider backing the principal |
As the principal, you are responsible for complying with the Nebraska Motor Vehicle Industry Licensing Act. Here are some actions that could result in bond claims:
- Substituting a vehicle that has already been selected by a buyer
- Not providing proper titles
- Misappropriating purchaser funds
- Lying about a vehicle’s year or model
- Misrepresenting a vehicle in any way
The surety protects consumers and the state against losses, damages and expenses. But, you have to repay the surety for any paid claims.
Note this Nebraska auto dealer surety bond is required for dealer licensing. If you're trying to register a vehicle with a missing title, a separate Nebraska certificate of title bond is required.
How Do I Get a Vehicle Dealer Bond in Nebraska?
You can apply for your Nebraska motor vehicle dealer bond online 24/7. Simply select which bond type you need and provide the following information:
- Dealer/dealership name
- Business location county
- Dealer license number, if available
Once your order has been processed, we’ll email your official surety bond form.
How Fast Can I Get My Bond?
We deliver most auto dealer bond quotes same-day. Apply now to get started. Once you complete your purchase, we’ll deliver the bond via email. Be sure to submit it to the Licensing Board with your license application.
Can I Get Bonded With Bad Credit?
Bad credit may impact your premium rate, but it doesn’t always disqualify you from getting a bond. We work with a variety of markets to approve 99% of applicants.
How Do I Renew My Motor Vehicle Dealer Bond?
Nebraska dealer bonds expire annually on December 31. We’ll start sending you renewal reminders in October. Just pay your renewal invoice to extend your bond for another year. You must be bonded as long as you hold an active license.
How to Get a Vehicle Dealer License in Nebraska
The Nebraska Motor Vehicle Industry Licensing Board enforces motor vehicle dealer license regulations, including the bond coverage requirement.
You’ll need to submit these documents to complete the online Nebraska dealer license application:
- Copy of zoning permit
- Photograph of the place of business and business sign
- Copy of lease agreement (if leasing)
- Certificate of liability insurance
- Service agreement
- Certificate of worker's compensation insurance (if elected)
- $50,000 surety bond
- Copy of franchise agreement (if applicable)
- Proof of completing 8 hours of CE (non-franchise dealers only)
- $400 licensing fee payment
A field investigator will contact you to schedule a dealership inspection. After a successful inspection, you’ll be issued your Dealer’s License and Treasurer’s Certificate, which authorizes the County Treasurer to issue your dealer plates.
All licenses expire on December 31 each year. Be sure to renew your licence and bond before they expire. Non-franchise dealers must complete eight hours of continuing education per year.
