Nebraska Motor Vehicle Dealer Surety Bond
A Nebraska motor vehicle dealer surety bond is a required license bond for any person or business engaged in the buying, selling, or dealing of motor vehicles within the State of Nebraska. The Nebraska Motor Vehicle Industry Licensing Board (MVILB) — a dedicated, independent licensing board (not a division of the DMV) — requires all dealer license applicants to post a surety bond. The standard bond is $50,000 for motor vehicle, trailer, wholesale, and motorcycle dealers, with a $100,000 bond for auction dealers. Surety One, Inc. offers quick, no-hassle underwriting for all Nebraska motor vehicle dealer bonds.
Bond Amount & Requirements
Nebraska Revised Statutes NRS 60-1419 (Motor Vehicle Industry Regulation Act, NRS 60-1401 et seq.) requires all dealer license applicants to furnish a corporate surety bond. The bond is bound to the State of Nebraska for the use and benefit of interested persons, both resident and nonresident.
| Bond Amount | License Type | Description |
|---|---|---|
| $50,000 | Combination Dealer (most common) | Sells new/used motor vehicles, trailers, and motorcycles under one license |
| $50,000 | Motor Vehicle Dealer | Sells new and/or used motor vehicles |
| $50,000 | Trailer Dealer | Sells new and/or used trailers |
| $50,000 | Motorcycle Dealer | Sells new and/or used motorcycles |
| $50,000 | Wholesale Dealer | Sells motor vehicles to other licensed dealers |
| $100,000 | Auction Dealer | Conducts motor vehicle auction sales |
Important — 60-Day Cancellation Notice & Enumerated Prohibited Acts: Nebraska requires the longest cancellation notice period in the country: 60 days’ written notice (with reasons stated) to both the principal and the MVILB. The bond form also enumerates specific prohibited acts, including: vehicle substitution after selection, failure to deliver clear and marketable title, misappropriation of purchaser funds, alteration to deceive as to year model, and false or fraudulent representations. Liability accrued prior to cancellation survives the bond’s termination.
Who Needs This Bond?
Nebraska considers any person or business entity who buys, sells, or deals in motor vehicles either directly or indirectly to be a motor vehicle dealer. The bond applies to:
- Combination dealers (motor vehicles + trailers + motorcycles) — $50,000
- Motor vehicle dealers (new and/or used) — $50,000
- Trailer dealers — $50,000
- Motorcycle dealers — $50,000
- Wholesale dealers — $50,000
- Auction dealers — $100,000
How Much Does the Bond Cost?
The cost is a small percentage of the required bond amount, determined by credit, financials, and experience. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
Nebraska Dealer License Requirements
- Completed dealer license application with $400 application fee ($200 for wrecker/salvage; $600 for manufacturer/distributor)
- $50,000 surety bond (or $100,000 for auction dealers) — a Nebraska registered agent must sign the bond
- Dealership name that includes the nature of the business (e.g., “Joe’s Auto Sales”)
- Lease agreement copy (if property is not owned)
- Liability insurance with minimum limits of $25,000 / $50,000 / $25,000
- Worker’s compensation insurance (or waiver of exemption)
- Copy of franchise agreement or manufacturer/distributor contract (new vehicle dealers only)
- Established place of business meeting board requirements
Filing, Renewal & Cancellation
The original surety bond must be submitted with both the initial license application and each subsequent annual renewal — unlike many states where a continuation certificate suffices. Licenses expire December 31st of each year regardless of the date of issuance. The surety may cancel the bond by delivering 60 days’ written notice (the longest notice period nationally) stating the desire to be relieved of liability and the reasons therefor, to both the principal and the MVILB.
Cancellation does not affect any liability incurred or accrued prior to termination. The surety will not be relieved of liability until it has paid and discharged in full all liability upon the bond. Both the principal and surety must give immediate written notice to the MVILB of any action commenced against the bond.
Bond Claims
The bond specifically indemnifies any person or other dealer for loss suffered because of enumerated prohibited acts: vehicle substitution, failure to deliver clear title, misappropriation of funds, deceptive year-model alterations, and any false or fraudulent representations in the sale of motor vehicles or trailers. The aggregate liability of the surety shall not exceed the bond penalty.
Nebraska Motor Vehicle Industry Licensing Board (MVILB)
301 Centennial Mall South
P.O. Box 94697
Lincoln, NE 68509
Phone: (402) 471-2148
Email: mvilb.info@nebraska.gov
Web: mvilb.nebraska.gov
Surety One, Inc. is the Nebraska surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for Nebraska motor vehicle dealer bonds, auction dealer bonds, and all other license bond classes. Call us at (800) 373-2804, email Underwriting@SuretyOne.com, or chat with a live underwriter for immediate assistance.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
What We Need From You
Obligee's Bond Form
