Motor Vehicle Dealer Bonds – Nebraska
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.
Fill out the application by clicking Let’s Roll below, and Jet will get you quoted within 24 hours of submission.
How much does a Motor Vehicle Dealer Bond cost?
Jet finds the low prices by shopping several insurance companies. Certain aspects affect your price but with Jet, you will find the lowest rates.
When choosing a monthly option, you could pay as little as $21 per payment. Our yearly rates for Nebraska dealers start at $250.
|Monthly | Annual||Monthly | Annual|
|Preferred||$21 | $250||$42 | $500|
|Standard||$44 | $525||$87 | $1050|
|Credit Repair||$94 | $1000||$260 | $3000|
*Pricing is based on various factors including personal credit of the dealer, license history, and years in business. Not all available prices are reflected.
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.
Apply for your bond coverage today by clicking the Apply Now button below.
|Bond Applications for Nebraska Dealers|
|$50,000 Auto Dealer Bond|
|$100,000 Auction Bond|
What Dealer Actions Covered by the 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.
Dealer License Application.
To receive a dealer license, a dealer must submit an application with the Motor Vehicle Industry Licensing Board. The application requires the following information:
- Name of dealership reflecting the nature of business
- Location compliant with zoning laws, with a copy of the zoning permit attached
- $50,000 bond
- Minimum of 40 business hours per week, 20 of which are between 8 am to 5 pm
- Telephone number listed in Directory Assistance under dealership name; cannot be a cell phone
- Service facility or an agreement with a second party within the same county
- Photograph showing the dealership and sign
- Certificate of Liability Insurance (not required for trailer only dealers)
- Workers’ Compensation Insurance
- Copy of franchise agreement or contract with a distributor or manufacturer
- Lease agreement not ending before December 31st, if applicable
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.