How much does an auto dealer bond cost in Nevada?
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Nevada Department of Motor Vehicles (DMV) as part of the licensing requirements for dealers, distributors, lessors, manufacturers, and rebuilders to conduct business in the state. The Nevada DMV sets the total bond amount based on the type of dealership 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
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Nevada 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 Nevada 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 Nevada.
- EZ Surety has issued vehicle industry business license bonds for premiums as low as $100.
- EZ Surety has issued garage bonds for premiums as low as $100.
Why are auto dealer bonds important in Nevada?
Nevada auto dealer bonds provide protection for customers, creditors, and the state government. When a Nevada motor vehicle dealer posts a surety bond, they provide a guarantee to the Nevada DMV (the bond’s Obligee) that they will conduct business in compliance with the conditions listed in Chapter 482 of the Nevada Administrative Code.
If the auto dealer fails to comply with the code, 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.
How to get your auto dealer license in Nevada
To obtain your auto dealer license in Nevada, you must meet the Nevada DMV business licensing requirements by completing the following steps.
- Complete the Business License Application (Form OBL237)
- Submit the Personal History Questionnaire (Form OBL242)
- Submit DPS Fingerprint Background Waiver (Form OBL256)
- Provide fingerprints for each business principal on the application.
- Post the appropriate surety bond
- Provide your Federal Employer Identification Number (FEIN)
- Provide a copy of your city or county business license
- Provide a copy of the business’ Certificate of Incorporation
- Provide certificate of insurance
- Establish a place of business that meets DMV requirements
- Install proper signage at each business location
- Provide two color photographs of the business location
- Complete a site inspection conducted by the DMV.
License applicants must pay the following fees:
- $126 Application Fee
- $38.25 Fingerprint Processing Fee