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Nebraska Motor Vehicle Dealer Bond

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What is the cost of a Nebraska auto dealer bond?

The Nebraska Motor Vehicle Industry Licensing Board requires auto dealers in the state to post a $50,000 surety bond. This bond covers motor vehicle, trailer, wholesale, or motorcycle dealers. These bonds are subject to underwriting, which means the amount a client will pay for this bond is contingent on his or her personal credit report. With a strong credit report, clients can expect to pay just 1% to 3% of the $50,000 bond amount.

Don’t worry if you have a lower credit score — our surety specialists can still help. When you work with SuretyBonds.com, you know you’re getting the best rate available. Contact a surety bond expert now by calling 1 (800) 308-4358 or applying for a free bond quote online!

Bond Type
$50,000Motor Vehicle Dealer Bond

SuretyBonds.com is dedicated to getting you bonded quickly for the best rate available. Request your free surety bond quote online now, or speak with a surety bond expert by calling 1 (800) 308-4358.

The importance of a Nebraska auto dealer bond

By posting this bond, the principal (auto dealer) agrees to adhere to the rules and regulations outlined in the Nebraska Revised Statutes. The bond form specifically requires dealers to repay customers or other dealers for losses that result from:

  • substituting a vehicle or trailer after one has already been selected by a purchaser
  • failing to provide the purchaser with a clear and marketable title
  • misappropriating funds that belong to the purchaser
  • deceiving the purchaser as to the year or model of a vehicle or trailer
  • representing a vehicle or trailer in a false, fraudulent, or deceitful manner

For more information about motor vehicle, trailer, wholesale or motorcycle dealer bonds in Nebraska, contact a surety bond expert online.

Please note this page is for vehicle dealer licensing. If you have lost or need to obtain a vehicle title, a Nebraska certificate of title bond is required.

Considerations for Nebraska auto dealer bonds

Motor vehicle dealer bonds in Nebraska expire annually on December 31. If the bond is to be canceled, the surety must provide 60 days' written notice to the Nebraska Motor Vehicle Industry Licensing Board.

The county the dealership is located in must be listed on the bond form.

How to become an auto dealer in Nebraska

Posting a surety bond is just one step in becoming a licensed motor vehicle dealer in Nebraska. Prospective dealers must do the following to become licensed:

  1. Complete and notarize the dealer licensing application, including:
  • Legal dealership name
    The dealership’s name cannot use terms such as "discount," “for less,” and "wholesale.”
  • Business location with verified zoning
    A copy of the zoning permit containing the dealership’s name and address, or a zoning authority letter confirming that auto/trailer sales are permitted at the dealership location, must accompany the application.
  • Photograph of business sign and location
    The name of the dealership must be at least 8” in height on the sign and match the dealership name on the application.
  • Working business telephone number that is not connected to a cell phone
  • Business hours
    The dealership must be open 40 hours per week, with at least 20 during regular business hours (8 AM to 5 PM).
  • Lease agreement
  • Service facility or agreement
    If the dealership doesn’t have its own service facilities to handle service and repairs, it must complete the Service Agreement with a second party within the dealership’s county.
  • Ownership details
  • Proof of all required insurance
    Automobile liability insurance
    Workers' compensation insurance
  • Corporate surety bond
    The bond must reflect the ownership of the dealership (corporation, LLC, owner, or partnership).
  • License application fee of $400

Note: If you have a franchise agreement with a distributor or manufacturer, a copy of the agreement must accompany the application.

2. A State of Nebraska field investigator will contact you to schedule an appointment to inspect the dealership. After the inspection and approval, you must return the application paperwork, along with the Inspection Report and fees, to 301 Centennial Mall South, Lincoln, NE 68509.

If you’re ready to get your motor vehicle dealer license in Nebraska, kickstart the licensing process by requesting your free surety bond quote now.

Ready to get started?

Call 1 (800) 308-4358 to talk with a Surety Expert