Nebraska MVD Bond

Nebraska MVD Bond

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A Nebraska MVD bond is a type of surety bond that is required for certain motor vehicle dealers and businesses that are licensed by the Nebraska Motor Vehicle Division (MVD). This bond helps to ensure that the licensee will comply with all laws and regulations related to their industry, as well as any financial obligations that may arise from their business activities. The bond must be obtained from a surety company that is authorized to do business in Nebraska, and the amount of the bond will depend on the type of business being licensed. Upon completion of the bond, it will be held by the Nebraska MVD and is generally valid for two years. Failure to comply with the requirements of the bond may result in its cancellation or forfeiture, which could lead to the denial of the license or other legal action.

What is an Nebraska Car Dealer Bond? 

Nebraska Car Dealer Bonds are required by the State of Nebraska's MVILB to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $50,000.  The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.

The State requires a Car Dealer bond for each license you hold:  

$50,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers

Different parts of a bond:

 There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee  is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

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You can buy your Nebraska Car Dealer bond (Apply) online immediately

Nebraska MVD Bond Requirements and Information

NE Dealer License Qualifications

The NE Motor Vehicle Industry Licensing Board offers a number of different dealer licenses. On this page, we’ll focus on motor vehicle dealer licenses.

You’re considered a motor vehicle dealer if you:

Are NOT a bona fide consumer, meaning you sell more than 8 vehicles in 12 months.

Consistently sell, lease (for at least 30 days), or exchange new or used motor vehicles, trailers, or motorcycles.


Buy, sell, or attempt to sell new or used motor vehicles.  

Apply for a NE Dealer License

The NE Motor Vehicle Industry Licensing Board provides a set of detailed instructions on submitting your dealer license application—keep this handy as you gather the necessary materials below.

IF your dealership will operate under a corporation or LLC, you must register with the Nebraska Secretary of State’s Business Services Division—call (402) 471-4079 for registration information.

Once that’s taken care of, apply for your Nebraska motor vehicle dealer license by submitting the following:

The completed:

o Dealer License Application (Form DLB-1A).

o Applicable salesperson application(s); if you are:

A partner, LLC member, corporate officer, or sole owner: Application for Free Motor Vehicle, Trailer or Motorcycle Salesperson’s License (Form DLB-3Af).

None the above: Application for Motor Vehicle, Trailer or Motorcycle Salesperson’s License (Form DLB-3A).

Proof of zoning approval, which can be a copy of:

o Your dealership’s zoning permit.

o A letter from the local zoning authority, confirming your dealership is approved to do business.

Photos of your dealership AND signage—the name must be in letters at least 8 inches tall.

A Certificate of Liability Insurance from a licensed Nebraska insurance provider.

Your Certificate of Workers’ Compensation Insurance from the NE Department of Insurance OR Worker’s Compensation Waiver, depending on whether you elected coverage.

A $50,000 corporate surety bond on a form approved by the NE Attorney General (the agent issuing the bond should already have this form).

If applicable, a copy of your franchise agreement with the manufacturer whose cars you’re selling.

Mail the above items to:

Nebraska Motor Vehicle Industry Licensing Board

301 Centennial Mall South

P.O. Box 94697

Lincoln, NE 68509

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