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In Nebraska, motor vehicle dealers need to get a license and surety bond. Keep reading to see what information the state needs, or apply online today to get the bond you need.
Nebraska Dealer License Requirements
Licensing and bonding for car dealers are standard procedure in most states, including Nebraska. Nebraska motor vehicle dealers are issued licenses by the Motor Vehicle Industry Licensing Board. The term “motor vehicle dealer” also includes motorcycles and trailers, meaning licensed dealers can also sell those vehicles.
The Board has created thorough instructions for motor vehicle dealer applicants, so review them completely before submitting an application. Listed below is some of the information the Board will need:
- Dealership’s DBA, address, and phone number
- Zoning permit or letter from zoning authority
- Photos of business and signage
- Posted business hours of at least 40 hours per week
- Proof of workers compensation insurance or coverage waiver
- Franchise agreement, if applicable
- $50,000 surety bond
Nebraska motor vehicle dealers must have service facilities at the business location, or they need a Service Agreement with a repair shop. After the application is submitted, a field investigator will inspect the dealership and approve or deny the application. The dealership must have space to display at least ten of the vehicles it will be selling. If the applicant doesn’t own the location, they must provide a lease agreement. Licenses expire each year on December 31.
Dealer Bond Requirements
Auto dealers need a $50,000 surety bond in Nebraska—a standard amount for dealers across the country. The bond means that dealers are guaranteeing the state and their customers that they will adhere to the terms of their license. And when it comes to selling cars, that means obeying all the laws pertaining to their business.
Dealers have obligations to their customersďż˝that they won’t misrepresent the vehicle they’re selling, that they will not misuse customer funds, and that they will provide titles for the vehicles they sell. (And those are only a few of their responsibilities!) Should they violate the terms of their license and the surety bond, causing financial damage, claims can be filed against the bond. The dealer must reimburse the surety, so it’s their best bet to avoid claims on the bond.
How Much Does The Bond Cost?
Nebraska motor vehicle dealers’ bond provides $50,000 of coverage, and it’s underwritten, meaning its premium varies depending on a review of the bondholder’s credit. But don’t worryďż˝with a strong financial history, applicants pay as little as 1%, or $500, for their bond.
Even if your credit isn’t at its highest, give Single Source Insurance a call and we’ll help you get bonded in Nebraska!