A Nevada motor vehicle dealer bond, also known as a Vehicle Industry Business License Bond, is a type of surety bond required for all motor vehicle dealerships in Nevada. The bond acts as a guarantee that the dealer will abide by Nevada’s motor vehicle dealer laws and regulations, and that they will fulfill their obligations to consumers. If the surety company pays a claim on the bond, it will seek restitution from the bond principal (licensee). All motor vehicle dealerships in Nevada are required to obtain a Nevada Motor Vehicle Dealer Bond. If one sells more than 3 vehicles in a 12 month period, they must obtain a Motor Vehicle Dealer License. The bond amount depends on the type of vehicle being sold.
- Utility trailers or boat trailers.: $10,000.
- Motorcycles, horse trailers (without living quarters), and utility trailers that weigh 3,501 lbs. or more: $50,000.
- All other types of vehicles: $100,000.
The cost of the Vehicle Industry Business License Bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.
How to Get a Nevada Motor Vehicle Dealer Bond
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Nevada motor vehicle dealer bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
How to Get a Nevada Vehicle Dealer License
Obtaining a vehicle dealer license in Nevada requires a series of steps to ensure you meet the state’s requirements and can operate legally. Here’s a comprehensive guide on how to get a vehicle dealer license in Nevada:
- Determine the Type of License You Need Nevada offers three types of vehicle dealer licenses:
- New and Used Vehicle Dealer License: Required for businesses that sell or lease new and used vehicles to the public.
- Wholesale Vehicle Dealer License: Required for businesses that sell or lease vehicles to other dealerships or businesses and do not sell directly to the public.
- Motor Vehicle Broker License: Required for individuals or businesses that act as intermediaries between buyers and sellers of vehicles but do not own the vehicles themselves.
- Establish a Permanent Business Location – You must have a permanent business location in Nevada that meets zoning requirements and has adequate space for vehicle storage, display, and office operations. The location must be accessible to the public and comply with all applicable building and safety codes.
- Submit Fingerprints -You will need to submit your fingerprints to the Nevada Department of Motor Vehicles (DMV) for background check purposes. This ensures that you have a clean criminal record and are fit to operate a vehicle dealership.
- Obtain a Nevada motor vehicle dealer bond – A dealer bond is a type of surety bond that protects consumers from financial losses if a dealership engages in fraudulent or unethical practices. The bond amount varies depending on the type of license you are applying for.
- Arrange Liability Insurance – You must obtain liability insurance to cover potential damages or injuries arising from your dealership’s operations. The insurance policy must meet the minimum coverage requirements set by the Nevada DMV.
- Obtain a Business License -In addition to the vehicle dealer license, you will also need to obtain a general business license from your local county or city clerk’s office. This license allows you to operate a business in your municipality.
- Complete the Application Process – Once you have met all the prerequisites, you can submit your application for a vehicle dealer license to the Nevada DMV. The application includes various forms, documentation, and fees.
- Pass a Site Inspection – A DMV representative will conduct a site inspection of your business location to ensure it complies with all regulations and safety standards. This inspection is mandatory for all new license applications.
- Receive Your License – Upon successful completion of the application process, site inspection, and background check, you will receive your vehicle dealer license from the Nevada DMV.
- Continuing Education: Vehicle dealers in Nevada are required to complete continuing education courses to stay updated on industry regulations and best practices.
- Recordkeeping: Maintain accurate and up-to-date records of all vehicle transactions, including sales, leases, and title transfers.
- Compliance: Adhere to all Nevada vehicle dealer laws, regulations, and licensing requirements. Failure to comply can result in fines, penalties, or license suspension.
Remember, obtaining a vehicle dealer license in Nevada is a serious undertaking. It requires careful preparation, adherence to regulations, and a commitment to ethical business practices. By following these steps and maintaining compliance, you can establish a successful and reputable vehicle dealership in Nevada.
For more licensing information, visit Nevada’s official site.
Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.