What is a Nevada Motor Vehicle Dealer Surety Bond?
The State of Nevada requires all motor vehicle dealers, brokers, rebuilders, lessors, distributors and manufacturers to obtain a surety bond before conducting business. Bond amounts vary based on the license classification:
- Off-Highway Vehicle Dealer (OHV) – $50,000 Bond
- Broker – $100,000 Bond
- Dealer, Distributor, Lessor, Manufacturer and Rebuilder
- $10,000 Bond – for utility or boat trailers with an unladen weight of 3,500 or less
- $50,000 Bond – for motorcycles, horse trailers without living quarters or utility trailers with an unladen weight of 3,501 or more
- $100,000 Bond – for all other vehicle type
How much do Nevada Motor Vehicle Dealer Bonds cost?
Nevada Motor Vehicle Dealer Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer rates with qualifying credit starting at:
- $100,000 Bond – starts at $450
- $50,000 Bond – starts at $200
- $10,000 Bond – starts at $100
It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
Can I get a Nevada Motor Vehicle Dealer Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Nevada Motor Vehicle Dealer Surety Bonds. Our strong surety relationships help get your price down as low as possible each year. There is no need to shop your rate – we do that for you! If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
How does a Nevada Motor Vehicle Dealer Surety Bond work?
Nevada Motor Vehicle Dealer Surety Bonds guarantee the principal (auto dealer) complies with all provisions of the Nevada Revised Statutes and is for the use and benefit of the consumer. This includes any breach of a consumer contract, deceptive trade practice, fraud, fraudulent representation or violation of any of the provisions in the statutes. If the principal engages in unethical or unlawful business practices, a claim can be filed with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then responsible to reimburse the surety for all monies paid out, including any attorney fees incurred.
What are the terms of a Nevada Motor Vehicle Dealer Surety Bond?
Nevada Motor Vehicle Dealer Surety Bonds are filed with the Nevada Department of Motor Vehicles and have a continuous term. The bond renews on an annual basis and remains in full effect until canceled by the surety company. The surety can cancel the bond at anytime by giving 30-days written notice via registered mail to the Department of Motor Vehicles. The aggregate liability of the surety will not exceed the penal sum of the bond in any event.
How do I get a Nevada Motor Vehicle Dealer Surety Bond?
The first step is to complete our quick online application for your free bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
Getting a Nevada Motor Vehicle Dealer License?
Anyone who wishes to become a motor vehicle dealer in the state of Nevada must submit a completed application with all applicable fees to the Nevada Department of Motor Vehicles and provide the following:
- Personal History Questionnaire (OBL242) completed by each principal of the business listed on the license application
- One set of fingerprints submitted by each principal of the business listed on the application. Principal must be fingerprinted by an authorized NV DMV representative or a law enforcement again Check with your local law enforcement agency for any additional fees.
- DPS Fingerprint Background Waiver (OBL256) completed and signed by each principal submitting a set of fingerprints
- Surety Bond
- Insurance certificate showing automobile liability coverage
- Copy of City or County business license
- Fictitious Firm Name Filing, if applicable
- Copy of Certificate of Incorporation and Corporate filing, with names of the officers, filed with the Nevada Secretary of State’s Office, if applicable
- The Federal Employer Identification Number (FEIN) of the business
- An email address for the business
- An established place of business within the state, with a permanent enclosed building large enough to accommodate an office and sufficient space to display one or more vehicle The established place of business must also have boundaries, which are clearly marked.
- Two color photographs of business location that clearly show the exterior of the business to include the display sign
- A site inspection conducted by the Department