What is a Nevada Motor Vehicle Dealer, Rebuilder, or Lessor Bond?
The Nevada Department of Motor Vehicles (DMV) requires all motor vehicle dealers, brokers, rebuilders, lessors, distributors, and manufacturers to obtain a business license to operate in the state. One of the requirements to get a Nevada Department of Motor Vehicle Business License is to obtain a surety bond.
A surety bond is a three-party contract between the principal (the person or business required to get the bond), the obligee (the entity that requires the bond), and the surety company that issues the bond.
The Nevada Motor Vehicle Dealer, Rebuilder, or Lessor Bond (also called the Vehicle Industry Business License Bond) protects the public should the principal (the licensee) fail to adhere to their licensing regulations or state laws. If the principal violates state law resulting in injury to a consumer, the injured party can file a claim against the principal’s bond. The surety will pay out all valid claims up to the bond amount; however, the principal is financially liable for reimbursing the surety for all claims paid out, plus additional fees and expenses incurred. Essentially, the bond helps to ensure that businesses operate ethically.
Who has to get a Vehicle Industry Business License Bond?
The Nevada DMV requires applicants applying for their business license in the vehicle industry to get a Vehicle Industry Business License Surety Bond. Below are the businesses required to get a bond:
- Auto Dealers – Those who exchange, purchase, display for sale, or sell motor vehicles.
- Distributors – Those who supply new vehicles to dealers.
- Lessors – Those who lease vehicles for a fixed period; the fixed period can be long-term (more than 31 days) or short-term (31 days or less).
- Manufacturers – Those who produce motor vehicles, trailers, or semi-trailers.
- Rebuilders – Those who alter, replace, add, or assemble vehicles from unassembled parts or replicas.
How much does this bond cost?
The cost of your Vehicle Industry Business License Bond will vary depending on the bond amount you need. And the bond amount for this bond varies depending on the types of vehicles your business handles. The typical bond amounts are as follows:
- $10,000 – Utility or boat trailers with an unladen weight of 3,500 or less
- $50,000 – Motorcycles, horse trailers without living quarters, or utility trailers with an unladen weight of 3,501 or more
- $100,000 – All other vehicle types
The premium, how much you will pay for your bond, is determined by several factors, including your bond amount, credit score, industry experience, and business financials. At EZ Surety Bonds, we work with several surety companies to find you the best rates available. Individuals with optimal financials and experience may see quotes starting around 1-2% of the bond amount. However, the best way to know how much you’ll pay is to apply for your free quote with us today.
The obligee for the Nevada Motor Vehicle Dealer, Rebuilder, and Lessor Bond is the Nevada Department of Motor Vehicles (DMV). Their contact information is as follows:
Nevada Department of Motor Vehicles
Occupational and Business Licensing
555 Wright Way
Carson City, Nevada 89711
How to get your Nevada Motor Vehicle Dealer, Rebuilder, or Lessor Bond
Bond applications are simple and fast with EZ Surety Bonds. Just fill out the short application form on our website for your bond, and one of our friendly surety experts will contact you within 24 hours regarding your free quote. If you still have questions, please contact us by calling 1-866-546-4606 or emailing us at firstname.lastname@example.org.
Frequently asked questions
To get a Nevada Auto Dealer License, you must do the following:
● Determine the dealer license type you need.
● Identify your permanent place of business.
● Register your business and obtain insurance.
● Get a Nevada Vehicle Industry Business License Bond.
● Submit your dealer license application and meet any additional requirements.
● Cover all licensing fees, including a $125 application fee and a $40.25 fingerprint processing fee per principal (as of 2022).
● Pass a site inspection.
The Nevada Auto Dealer License is valid for one year. You will be required to renew your license and bond before they expire if you wish to continue to operate. Check out our comprehensive step-by-step guide on how to get a Nevada auto dealer license if you have more questions.
The bond amount for the Vehicle Industry Business License Bond ranges from $10,000 to $100,000, depending on the type of vehicles your business handles. How much you’ll pay for your bond will be calculated based on your bond amount, credit (using a soft credit check), business financials, and experience in the industry.
Still, we encourage you to apply for your free quote regardless of your financial standing. At EZ Surety Bonds, we work with multiple sureties to ensure we find the best quotes available.
Most obligees require you to file the original bond with them. After you purchase your bond, we will mail the original to you. Some obligees may accept an electronically filed bond; however, because every obligee has different filing requirements, please check with your obligee to ensure you properly file your bond.