Nevada Car Dealer License

Auto dealers in Nevada must obtain an auto dealer license to legally operate in the state. The licensing process is overseen by the Nevada Department of Motor Vehicles (DMV).

In this guide, we’ll outline the DMV licensing requirements and give you a step-by-step process for getting your Nevada car dealer license.

nevada car dealer

Step 1: Determine your license type

The first step to becoming a licensed car dealer in Nevada is to figure out what type of license you need. There are several different classifications each allowing you to sell a certain type of motor vehicle.

The available license types are:

  • Dealer license: This license lets dealers sell new or used motor vehicles to the public.
  • Distributor: This license lets you sell new motor vehicles to other auto dealers.
  • Lessor license: This license lets you lease motor vehicles to the public.
  • Rebuilder license: This license lets you rebuild vehicles by adding, substituting, or altering unassembled parts.

Step 2: Get your permanent place of business

Next, you will need to set up your established place of business. This business location must adhere to several requirements set by the Nevada DMV. This includes:

  • Must be a permanent and enclosed building
  • Must be large enough for an office to keep the business records
  • Have enough space to display at least one vehicle
  • Must have a sign permanently affixed to the outside of the structure

When you submit your application, you will need to include two color photographs of your place of business. 

Step 3: Register your business and get insurance

If you plan to operate a motor vehicle dealership, you will need to register your business with the Nevada Secretary of State. You can find a checklist of the steps you need to complete on the SOS website.

When submitting your dealer license application, you will need to include a copy of your Certificate of Incorporation as well as your federal employer identification number (FEIN).

Auto dealers in Nevada are also required to get garage liability insurance. There are different requirements based on the type of vehicles that you sell.

Step 4: Get a motor vehicle dealer bond

The Nevada DMV requires auto dealers to post a motor vehicle dealer surety bond before receiving their dealer license. These bonds ensure that dealers conduct business ethically and give consumers and the state financial protection in the event they are damaged by a dealer.

The required bond amount for a Nevada auto dealer bond varies based on the type of dealer license.

  • 100,000 Vehicle Industry License Bond for car dealers and brokers
  • $100,000 Vehicle Transporter License Bond
  • $10,000 Body Shop License Bond
  • $10,000 Wrecker and Salvage Pool License Bond
  • $10,000 Vehicle Industry License Bond for utility or boat trailer dealers
  • $5,000 Garage License Bond

To obtain your bond, you will need to pay a small percentage of the total amount as a premium. The exact rate will vary based on a variety of factors including your credit score, financial history, and industry experience.

Step 6: Submit your dealer license application 

After you have met all the DMV’s requirements, you can complete the Vehicle Industry License Application Packet, found on the DMV website.

In addition to the license application, you will need to complete the following forms:

  • Personal History Questionnaire (OBL242)
  • Dealer Franchise Certification (OBL253) (new vehicle dealers only)
  • Letter of confirmation from the SAE Strategic Alliance (manufacturers only)
  • DPS Civil Applicant Waiver (OBL256)

Along with these forms, you will need to include proof of insurance coverage, your business license, and fingerprint authorization.

There is a $126 application fee for each license that you apply for. There is also a $38.25 fingerprint processing fee for each individual included in the application.

Nevada car dealer license frequently asked questions

How do you renew a Nevada car dealer license?

Nevada auto dealer licenses are valid for one year from the date they are issued. In order to remain compliant with state law, you will need to renew the license before it expires.

The DMV will send you a renewal notice prior to your license expiration date.

How many cars can you sell without a dealer’s license in Nevada?

In the State of Nevada, individuals and businesses are allowed to sell up to three motor vehicles per year without a license. Anyone that sells more than three vehicles in a year needs to get a license.

Get your auto dealer bond with EZ Surety Bonds

These are the steps to becoming a licensed auto dealer in Nevada. When you’re ready to get the licensing process started, EZ Surety can offer you a free online quote for your Nevada auto dealer bond. Apply online today or get in touch today to learn more.