Nebraska dealers are required to have a $50,000 bond to conduct business. This applies to dealers selling new or used motor vehicles, trailers, and motorcycles, as well as wholesale dealers. Auction dealers, however, must have a $100,000 bond to participate in auctions.
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When choosing a monthly option, you could pay as little as $25 per payment. Our yearly rates for Nebraska dealers start at $250 annually.
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While bonds cover several types of unethical dealer actions, there are guidelines put in place. The main one is that if a customer has encountered the dealer actions that are covered by the bond, they are entitled to file a claim to recover damages. However, the claim cannot be larger than the bond amount. As long as payment for the bond is made, it will continue until cancelled.
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Motor Vehicle Dealer Bond
Bonds are able to compensate customers for any loss(es) suffered by specific dealer actions. These actions mostly deal with fraud or misrepresentation of the vehicle being sold. The lack of distributing a valid title, switching out a vehicle or trailer instead of the one picked out by the customer, or mishandling of money received from the customer are covered by the bond.
Any deception of the vehicle information during the sale would also be covered. The bond will reimburse those who a dealer does not provide proper payment for purchasing a vehicle for their dealership. Lastly, the bond covers instances of a dealer who does not give payment for the sale of a vehicle bound by a lien or security interest to the holder. However, the dealer is always responsible to pay back the amount that was paid out on the bond.
To receive a dealer license, a dealer must submit an application with the Motor Vehicle Industry Licensing Board. The application requires the following information:
When the application is turned in, it will be sent to a field investigator who will schedule an inspection. After approval, the applicant submits the Inspection Report with the license fee and any other items needed.
Along with the Dealer’s License, a Treasurer’s Certificate is given to permit the County Treasurer to distribute dealer plates to the dealer.
Dealer licenses in Nebraska coincide with the calendar year, beginning on January 1st and ending December 31st.