Nevada Auto Dealer Bond Overview
Motor vehicle dealers in Nevada must obtain a Nevada auto dealer bond when getting licensed at the Department of Motor Vehicles in Nevada. This bond is put in place to protect the public, and the state, from auto dealers who do not follow state regulations for auto dealer licenses.
It guarantees that anyone who suffers financial losses due to an auto dealer’s misdeeds will be compensated by the surety that backs the bond. In other words, the auto dealer bond is an agreement between the auto dealer (principal), the Nevada DMV and the public (obligees) and the surety.
If the auto dealer breaches this agreement by not complying with state regulations, an obligee can file a claim against their bond and request compensation. Sureties then step in and compensate the customers who may have suffered a loss. In return, the auto dealer must indemnify the surety for its financial assistance and backing.
Read on to find out how much Nevada auto dealer bonds cost, and how you can get your Nevada auto dealer license and bond.
Nevada Auto Dealer Bond Cost
A variety of surety bonds are needed in the state of Nevada, depending on the type of license that you are applying for:
||Bond Cost by Credit Score|
|Principals and Bond Types||Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Dealers of utility or boat trailers with an unladen weight of 3,500 or less||$10,000||$100-$200||$150-$300||$200-$400||$300-$700|
Dealers of motorcycles,
horse trailers without living quarters or
utility trailers with an unladen weight of 3,501 or more
|Dealers of all other vehicle types||$100,000||$1,000-$2,000||$1,500-$3,000||$2,000-$4,000||$3,000-$7,000|
The cost, or the premium, of your Nevada auto dealer bond is a percentage of the total amount of your bond. Depending on the type of Nevada auto dealer bond you need, you will have to pay a different cost.
Cost also depends on your financial status, which is determined by sureties when they assess some or all of the following indicators of your financial health:
- Your personal credit score
- Your personal and business financial statements
- Your asset profile
- Your industry experience
The most important of the above indicators that sureties check carefully is personal credit score. An applicant with a very high credit score is usually offered a low premium, one between 1,5%-3% of the total bond amount. Premiums in this range are called standard market rates. Those with a slightly lower credit score are usually offered a premium between 3%-4%.
Apart from your credit score, there are other factors influencing your Nevada auto dealer bond rate. Which surety bond agency you work with can make an important difference in the type of rate you are offered.
Bryant Surety Bonds can offer you the lowest rates in the state. All of our surety bond partners are A-rated and T-listed companies that are among the best in the country. By getting your auto dealer bond through us, you will be backed by them.
Our surety bond calculator on the right can help you make an initial calculation of your Nevada auto dealer bond cost. If you prefer to get a precise and entirely free quote right away, apply online here. We will contact you as soon as possible with your free quote.
Call us anytime at 866.450.3412 to speak to one of our surety bond professionals. We can provide you with answers to all your auto dealer bond related questions as well as guide you through the application process if you have any difficulties.
For extensive information about how the cost of bonds is determined, visit our surety bond cost page!
Bad Credit Dealer Bonds
Most surety bond companies are reluctant to issue bonds to bad credit applicants. These applicants are perceived as too great a risk for surety bond companies to assume.
But Bryant Surety Bonds has long worked to develop a program that enables applicants with low credit, or no credit score, get bonded. The result is our Bad Credit Surety Bond Program that offers personalized opportunities to these applicants, requiring them to pay only a slightly higher rate, between 4%-7%. That way, not only can you get bonded, but at a good price as well.
Nevada Auto Dealer License Application and Renewal
Apart from obtaining or renewing your Nevada auto dealer bond, you also need to submit a number of documents and fees to the Nevada Department of Motor Vehicles. The DMV’s address is:
Nevada Department of Motor Vehicles
Occupational and Business Licensing
555 Wright Way
Carson City, NV 89711
The following licensing requirements must also be taken care of, as you submit your business license application:
- A personal history questionnaire
- A DPS civil applicant waiver
- Your Nevada auto dealer bond
- Copy of certificate of incorporation
- Your business’s federal identification number
- Dealer franchise certification for new auto dealers
The above is not an exhaustive list of all requirements. Since legislations and requirements change it is always best to check with the state DMV.
When you apply for your Nevada auto dealer license you will also have to pay the following fees:
- $126 license application fee
- $38.25 fingerprint processing fee
As you prepare to renew your license, you should remember that you can also get a lower rate on your surety bond. If you improve your personal credit score and business financials over time, you are sure to be offered a lower rate.
Get Your Nevada Auto Dealer Bond Today
Most Nevada auto dealer bonds are approved fairly fast. Simply apply online and fill in the surety bond application. After completing the application form, you will receive your FREE quote without any obligations.
Do you want to know more about auto dealer bonds? Call our surety bond experts at 866.450.3412 to have your questions answered. We know all about bonding requirements in Nevada and can respond to all your surety bond-related questions. Call us today!