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Nebraska Auto Dealer Bond

Get an Auto Dealer Bond in Nebraska through Viking Bond Service

Did you know that in 2018 alone there were over 86,000 new vehicles sold in Nebraska according to research from the Auto Alliance. That represents almost $3 billion in sales. If you would like to get a piece of the pie by getting involved with auto sales, you will need a Nebraska auto dealer surety bond first. Rely on Viking Bond Service to show you how everything works, then apply for a bond with us to get a quote back in as little as 24 hours.

Nebraska Auto Dealer Bonds Explained

The Nebraska Motor Vehicle Dealer bond is a License Surety Bond that serves to protect Nebraska's citizens by providing a path for recourse in situations where an Auto Dealer does not adhere to the laws, rules, and regulations as set in Nebraska state legal statutes. A Nebraska Motor Vehicle Surety bond may be required as part of the Motor Vehicle Dealer licensing and/or vehicle dealer registration process.

In Nebraska, the required Motor Vehicle Dealer bond amount is as follows:

• Nebraska, Motor Vehicle Dealer bond requirement – $50,000 Surety Bond

You should always check with the Nebraska Motor Vehicle Industry Licensing Board, or requesting agency, for the most current required Nebraska Motor Vehicle Dealer bond amount as well as the required bond forms.

What Parties Are Involved in Nebraska Motor Vehicle Dealer Bond?

A Nebraska motor vehicle bond is an agreement between three equal parties. Here's how the agreement works:

• The principal obtains the bond and keeps it active. If any claims are filed against the bond by the obligee, it's the principal's responsibility to pay.
• The obligee requires the principal to get the bond. If the terms of the bond are broken, the obligee can file a claim against the bond seeking compensation.
• The surety issues and underwrites the Nebraska auto dealer bond. If the principal is unable or unwilling to settle claims, the surety agrees to guarantee payment. Afterwards, they attempt to collect the amount they paid from the principal.

Who Needs an Auto Dealer Bond in Nebraska?

If you sell less than three new or used vehicles in Nebraska within a 12-month period, you do not need an auto dealer license or bond. Dealers who sell four or more vehicles within 12 months need both a license and a bond, and there are strict penalties if they fail to obtain either. Those range from expensive fines to being barred from ever selling vehicles to jail time.

How Are Auto Dealer Bonds in Nebraska Obtained?

You obtain a bond through a surety company like Viking Bond Service. The process is fairly straightforward. You fill out an application with information about your personal finances and business prospects. You will also provide any supplemental information requested by the surety company. Once complete, underwriters will review your application to determine your credit risk. Based on that risk, they will quote you a price for the Nebraska auto dealer surety bond premium. You then pay the premium to activate the bond, and provide paperwork to the state to prove you have met the bond requirement for an auto dealer license.

The Cost to Obtain an Auto Dealer Bond in Nebraska

Even though Nebraska auto dealer bonds are valued at $50,000, the cost is only a few thousand. That's because premiums are a small percentage of the bond value, often in the range of 3-5%. Principals with low credit scores or spotty credit reports will pay a slightly higher percentage, but they will rarely be denied outright, at least not when they work with Viking Bond service. Beyond the cost to obtain the bond, factor in the cost to renew it (around the same cost as the premium) and the cost of any claims you may pay (but only if your dealership breaks the rules).

How to Renew a Nebraska Auto Dealer Bond?

Your bond is active for one year. Your auto dealer license becomes invalid when the bond expires, making it illegal for you to sell vehicles, so you need to be proactive about renewing the bond. Viking Bond Service will send you a renewal notification long before the expiration date. When you renew, you submit the same information as when you initially applied, meaning information about your personal finances and business performance. Underwriters re-calculate your credit risk every time you renew and adjust your premium price accordingly, creating the opportunity for your costs to go down if your credit score goes up.

How Viking Bond Service Can Help You Get a Nebraska Auto Dealer Bond

writes Nebraska Motor Vehicle Dealer bonds. We can assist both clients with good credit, and clients with bad credit. Typically, the worse the credit, the higher the surety bond premium will be. In either case, we always work to get the best quote for you. Viking has partnered with markets that welcome Nebraska Motor Vehicle Dealer bond applications and provide competitive quotes for them.

Request a Nebraska Motor Vehicle Dealer Bond Quote

You can't start selling vehicles until you obtain a bond, so don't delay. Call Viking Bond Service at 1-888-278-7389 to speak directly to one of our in-house bond specialists. You can also submit your questions though the contact form on this page and one of our agents will contact you shortly. If you're eager to get your bond ASAP, take just a few minutes to complete our online bond application.