Nebraska Motor Vehicle Dealer Bonds

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Who Is Required To Purchase a Nebraska Auto Dealer Bond

The Nebraska Motor Vehicle Industry Board requires the following dealer license classifications to purchase an auto dealer bond:

• Auto dealerships
• Auto auctioneers

The amount of dealer bond is $50,000 and additional showrooms outside of primary county have an additional $50,000 dealer bond.

The auction bond amount is $100,000.

These bond amounts are the maximum financial coverage available for any valid claim against the bond.

Why is a Nebraska Motor Vehicle Dealer Bond Required?

Again, an auto dealer bond serves as a guarantee that you will:

• Follow the rules and laws for running a dealership
• Conduct business with your customers using honest practices
• And pay sales taxes

Because the state of Nebraska is licensing you, they're essentially indicating to the public that you're an auto dealer expert they can trust for services. They want to hold you accountable to the promises you make your customers.

Every year there will be some licensed dealerships who will take deliberate actions to financially harm their customers to increase profits.

Examples of these fraudulent actions include:

• Transferring a vehicle’s title incorrectly or failing to transfer the title
• Selling vehicles with a missing title
• Lying about a vehicle’s mileage, manufacture year, or condition to make a sale
• Stealing customer deposits
• Neglecting to pay the correct sales taxes to the Texas Department of Revenue

In the unfortunate event that a dealership harms their customers or fails to pay sales tax, the customer or the Nebraska Department of Revenue can make a claim against the surety bond for financial compensation.

The claim can only go up to the amount of the bond and only pays out if the claim is deemed valid.

How Much Does a Nebraska Auto Dealer Bond Cost?

The Nebraska auto dealer and auction bond requires a quoted rate from a surety. The surety is the insurance company that underwrites surety bonds.

Each surety typically uses the same primary factors when determining their rate:

• The credit of the owner and/or all owners
• Dealership business industry and experience
• Prior bond claims from previous licenses if applicable

The rate determined by the surety multiplied by the bond amount is the price you pay.

Even though each surety uses the same factors to determine this rate, they use an independent assessment and analysis. This means the rates from different sureties can (and often do) vary by percentage points.

This means finding the lowest rate can save you hundreds of dollars.

And this is why you should work with a specialized surety agency like Surety Bonds Direct.

We act as your private personal shopper collecting rates from our network of A-rated sureties and delivering the lowest possible rate and price to you.

When you request your free quote, it takes less than 24 hours to collect all rates.

Here is example pricing using the $50,000 dealership bond with rates ranging from really good to average. You can clearly see how a lower rate can save you a lot of money.

This is money you can use to pay for application fees or other costs related to getting your business up and going.

But the only way to know your pricing is to request a free quote and get your pricing.

Click here to start the quote process. Starting your quote today means you can have exact pricing in one business day.

Once you receive your pricing, you’ll be able to make the right decision for your business and goals.

How Long Does The Nebraska Auto Dealer Bond Last?

All Nebraska dealer and auction bonds have a fixed expiration date of December 31, each year. The Nebraska dealer license renews on the same date.

As your bond expiration approaches you'll need to renew it to keep it active for the next bond term.

Renewing your bond simply requires you pay the renewal premium.

This is another reason to work with a surety agency like Surety Bonds Direct. As our customer, you're assigned a bond specialist who will manage your bond for you.

Your bond specialist will contact you 30 to 40 days in advance of expiration to remind and help you get the bond renewal completed.

Nebraska Dealer Bonds Are Continuous

A continuous bond means the the same bond you filed when you turned in your application will remain on file as long as the bond is renewed.

This makes the renewal process easy and fast.

Motor Vehicle Dealer Bonds And Getting Your Nebraska Business License/Registration

Read our blog post that will take you through the steps to get your Nebraska auto dealer license.

At a high level, the steps are:

1. Choosing the appropriate dealership name
2. Setting up your dealership property
3. Purchasing your surety bond
4. Having your dealership inspected by a field investigator
5. Purchasing the auto dealer bond
6. Obtaining the necessary liability insurance
7. Submitting the application and paperwork

Additional Nebraska Motor Vehicle Dealer Bond Resources & Links

Read our blog post that will take you through the steps to get your Nebraska auto dealer license.

At a high level, the steps are:

1. Choosing the appropriate dealership name
2. Setting up your dealership property
3. Purchasing your surety bond
4. Having your dealership inspected by a field investigator
5. Purchasing the auto dealer bond
6. Obtaining the necessary liability insurance
7. Submitting the application and paperwork