Nebraska Auto Dealer Bond Overview
In order to work as a car dealer in Nebraska, you have to obtain a business license at the Nebraska Motor Vehicle Industry Licensing Board. One of the licensing requirements is a Nebraska auto dealer bond.
This auto dealer bond is a form of protection for customers, and the state, against auto dealers who do not comply with state regulations. The bond offers protection in the form of compensation when a dealer is found to be in breach of regulations.
In other words, this bond is like an agreement between the principal (you, the Nebraska auto dealer), the obligee (the state of Nebraska and the customers) and the surety bond company which provides the financial backing of the bond, and pays out compensations if claims against the bond are filed.
Check out the facts below, to find out how much your bond may cost and how you can apply to get yours.
Nebraska Auto Dealer Bond Cost
All Nebraska car dealers– whether new, used, wholesale or franchise dealers– are required to obtain a $50,000 Nebraska auto dealer bond when getting their business license.
The cost of obtaining the bond is a percentage of its full amount, and is determined by surety bond companies individually for every applicant. Sureties take into account a variety of factors to determine the proper rate at which applicants can get bonded. These factors include:
- Personal credit score
- Business and personal financial statements
- Applicant asset profile
- Applicant industry experience
In the table below you can see how much you will likely have to pay to acquire your bond, based on your credit score:
|Bond Cost by Credit Score|
|Surety Bond Name||Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Nebraska New & Used Motor Vehicle Dealer, Franchise and Wholesale Dealer Bond||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$3,500|
The most influential factor among the ones listed above is your personal credit score. Credit score is useful in correctly assessing the risk involved in bonding an applicant which is why sureties use it. Applicants with a high credit score therefore get lower rates.
This is called a standard market rate, and it typically ranges between 1%-3% for applicants with a perfect credit score. Applicants with a relatively high, but not perfect, credit score are offered rates between 3%-7.5%.
Many applicants do not realize how important it is to choose the right surety bond agency when getting bonded. Your choice of agency also influences the cost of your bond because different agencies have access to different markets.
Bryant Surety Bonds works only with A-rated and T-listed surety bonds in order to get you your Nebraska auto dealer bond. Their rating and listing places these companies among the top sureties in the whole country.
At the same time, they can provide Bryant Surety Bonds, and our customers, with the most competitive rates on all bonds. That way you get the best bonds at the lowest price.
You can tentatively estimate how much your surety bond will cost by using the surety bond calculator in the right sidebar. We can also provide you with an entirely free, precise quote on your Nebraska auto dealer bond if you apply online and submit a surety bond application form. Shortly after we will contact you with your quote.
You can always call us at (866)-450-3412 if you have any questions or need our surety experts to help you with your application. Find out more about rates and bond cost by visiting our 'Surety Bond Cost' page, which contains all the information you need.
Bad Credit Dealer Bonds
Getting a bond with bad credit often feels impossible to applicants, as they are turned down again and again. Luckily, Bryant Surety Bonds has developed a program that makes bonding applicants with bad or no credit possible and easy.
Our Bad Credit Surety Bond Program offers you the possibility to obtain a Nebraska motor vehicle dealer bond at a rate between 7.5%-10% of the total bond amount. And by getting bonded through this program, you are still obtaining the same high-quality bond by our expert surety bond partners.
Nebraska Auto Dealer License Application and Renewal
Along with obtaining a Nebraska auto dealer bond when applying for a license, Nebraska car dealers must also submit a full application form as well as meet other prerequisites.
Bonds, as well as licenses, expire on December 31st and are renewed on an annual basis. When sending in your original or renewal license application to the Nebraska Motor Vehicle Industry Licensing Board, the correct address of the obligee for you to use is:
301 Centennial Mall South, P. O. Box 94697 Lincoln, Nebraska 68509
Furthermore, keep also in mind that when applying for a license you will also need to:
- Specify a dealership name
- Conform to zoning requirements and present documentation
- Submit a photograph of your business sign
- Make sure you have a working telephone number and posted office hours
- Submit a copy of your lease agreement if you do not own the property
- Submit a certificate of liability insurance
- Submit a certificate of workers’ compensation insurance (if you choose to)
- Obtain a $50,000 Nebraska auto dealer bond
- Pay a $200 application fee
For even more information, make sure to check the Licensing Board’s website!
Get Your Nebraska Auto Dealer Bond Today
To get your Nebraska car dealer bond, apply online through our very simple surety bond application tool! Submitting your application form takes only a couple of minutes and since approvals for car dealer bonds are fast, you will receive your quote soon.
Our lines are open for you to call us anytime at (866)-450-3412 to speak to one of our surety professionals. We can provide you with further information about your bond and more.