Nevada Motor Vehicle Dealer Surety Bond
A Nevada motor vehicle dealer surety bond — officially called a Vehicle Industry Business License Bond — is a required license bond for any person or business engaged in buying, selling, brokering, leasing, rebuilding, manufacturing, distributing, or transporting motor vehicles within the State of Nevada. The Nevada Department of Motor Vehicles (DMV), Occupational and Business Licensing (OBL) section requires all vehicle industry license applicants to post a surety bond. The standard bond for auto dealers and brokers is $100,000 — one of the highest in the nation. Nevada also offers a unique bond reduction program for established dealers in good standing. Surety One, Inc. offers quick, no-hassle underwriting for all Nevada vehicle industry bonds.
Bond Amount & Requirements
Nevada Revised Statutes NRS Chapter 482 requires all vehicle industry business license applicants to file a surety bond with the DMV. Bond amounts are determined by the type of vehicle sold or the type of business operated.
| Bond Amount | License Type / Vehicle Category |
|---|---|
| $100,000 | Auto Dealer (new, used, wholesale) — all motor vehicles except categories below |
| $100,000 | Motor Vehicle Broker |
| $100,000 | Motor Vehicle Lessor |
| $100,000 | Auto Transporter |
| $50,000 | Motorcycle Dealer |
| $50,000 | Horse Trailer Dealer (without living quarters) |
| $50,000 | Utility Trailer Dealer (unladen weight 3,501 lbs or more) |
| $50,000 | Off-Highway Vehicle (OHV) Dealer (ATVs, UTVs, dirt bikes) |
| $50,000 | Wrecker / Salvage Pool Operator |
| $10,000 | Utility or Boat Trailer Dealer (unladen weight 3,500 lbs or less) |
| $10,000 | Body Shop |
| Varies | Manufacturer / Distributor / Rebuilder (based on vehicle type) |
Important — Bond Reduction After 5 Years: Nevada offers a unique bond reduction program for established dealers. If you have been licensed for 5 or more consecutive years and have maintained good standing with the DMV, you may request a reduction of your bond amount by up to 50%. A Bond Reduction Request Form must be submitted to the OBL office for approval. Also note that a certificate of deposit (CD) of equal amount may be filed in lieu of a surety bond.
Who Needs This Bond?
Nevada requires a vehicle industry business license for any person who sells more than three (3) motor vehicles in a 12-month period. The bond covers a broad range of vehicle industry participants:
- New (franchise) motor vehicle dealers
- Used motor vehicle dealers
- Wholesale motor vehicle dealers
- Motor vehicle brokers
- Motor vehicle lessors
- Motor vehicle rebuilders
- Motor vehicle manufacturers
- Motor vehicle distributors
- Auto transporters
- Off-highway vehicle (OHV) dealers
- Motorcycle dealers
- Trailer dealers (horse, utility, boat)
- Wrecker and salvage pool operators
- Body shops
How Much Does the Bond Cost?
The cost of a Nevada vehicle industry license bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by underwriting factors including credit score, financial strength, and experience. For bonds over $50,000, personal and business financial statements are typically required. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
Nevada Dealer License Requirements
In addition to the surety bond, the Nevada DMV Occupational and Business Licensing section requires:
- Completed General Application for Business License and Garage Registration
- A permanent, enclosed business location with office space, display for at least one vehicle, and business sign with lettering at least 8 inches in height formed by lines at least 1 inch wide, permanently affixed and visible from nearest public street
- Fingerprints submitted to DMV for background check
- Child Support Information form (required for all applicants)
- Automobile liability insurance: garage liability (including auto liability) or commercial auto policy with at least $95,000 CSL per accident, or split limits of $25,000/$50,000/$20,000
- On-site DMV inspection of business location
- Dealer Franchise Certification (OBL253) from the manufacturer or distributor (new/franchise dealers only)
- Certificate of Incorporation and corporate filing with Nevada Secretary of State (if applicable)
- Federal Employer Identification Number (FEIN)
- Licensing fee: $125 for dealers, distributors, lessors, manufacturers, rebuilders, and brokers; $300 for body shops and wrecker/salvage pool operators
Filing, Renewal & Cancellation
The original, signed, and sealed bond must be filed with the DMV Occupational and Business Licensing office. The bond must remain active to maintain the business license. Nevada dealer licenses renew annually. Licenses that expire for failure to renew may be reinstated upon submission of a completed renewal application, renewal fee, and a $25 late fee. Renewals can be processed through the DMV’s online licensing portal.
If claims are paid on a bond, the surety company will likely cancel the bond with the DMV, putting the dealer’s license in jeopardy. The dealer must then obtain a replacement bond to maintain licensure.
Bond Claims
A claim against the Nevada vehicle industry license bond may be filed by any consumer, creditor, or the state who suffers financial loss due to the dealer’s fraudulent behaviors, violation of NRS Chapter 482, or failure to remit required taxes and fees. The surety will investigate and pay valid claims up to the full bond amount. The bonded dealer must reimburse the surety for all amounts paid.
Nevada Department of Motor Vehicles
Occupational and Business Licensing (OBL)
555 Wright Way
Carson City, NV 89711
Phone: (775) 684-4368 (Reno/Carson City) | (702) 486-4368 (Las Vegas)
Web: dmv.nv.gov
Surety One, Inc. is the Nevada surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for all Nevada vehicle industry license bonds — from $10,000 trailer bonds to $100,000 auto 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.
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Obligee's Bond Form
