Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Nebraska Motor Vehicle Industry Licensing Board as part of the licensing requirements for dealerships to conduct business in the state. The Licensing Board sets the total bond amount at $50,000.
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Nebraska auto dealer bonds typically cost between 1% and 3% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Nebraska auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for auto dealer surety bonds in the State of Nebraska.
Nebraska auto dealer bonds provide protection for customers, creditors, and the state government. When a Nebraska motor vehicle dealer posts a surety bond, they provide a guarantee to the bond's Obligee (the licensing board) that they will conduct business in compliance with the conditions listed in Nebraska Revised Statutes 60-1401.
If the auto dealer fails to comply with the statutes, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
To obtain your auto dealer license in Nebraska, you must meet the Nebraska Motor Vehicle Industry Licensing Board licensing requirements by completing the following steps:
Nebraska auto dealer licenses expire annually on December 31st.