Surety Bond Encyclopedia

Auto Dealer Bond - Clark County, Nevada in Nevada

Brief Summary

Two things trip up most Clark County applicants. First, there is no Clark County auto dealer bond. Vehicle dealers are licensed by the Nevada Department of Motor Vehicles, Occupational and Business Licensing, and the bond is filed with the state on DMV form OBL 210. A Clark County or City of Las Vegas business license is a separate document you attach to that application. Second, the amount is not one figure. NRS 482.345 sets $100,000 for a dealer in vehicles other than motorcycles and trailers, $50,000 for motorcycles, $10,000 for small utility and boat trailers. Knowing which tier you are in before you apply is the difference between one filing and a rejected packet.

Nevada requires a Vehicle Industry Business License Bond from every licensed dealer, rebuilder, lessor, distributor and manufacturer. The amount is set by NRS 482.345 and depends on what the licensee sells: $100,000 for vehicles other than motorcycles and for travel or dual purpose trailers, $50,000 for motorcycles and for horse or special purpose trailers of 3,501 pounds or more, and $10,000 for utility or special use trailers of 3,500 pounds or less and boat trailers. The bond runs to the State of Nevada on DMV form OBL 210 and is for the use and benefit of the consumer.

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How to Apply for a Auto Dealer Bond:

Identify your NRS 482.345 tier before quoting: $100,000, $50,000 or $10,000 depending on what you sell
File the bond on Nevada DMV form OBL 210, Vehicle Industry Business License Bond, with the State of Nevada as obligee
Submit the OBL 335 business license application packet to DMV Occupational and Business Licensing
Attach a copy of your Clark County or city business license
Carry a garage liability policy including automobile liability, or a commercial auto policy, at $95,000 per accident for bodily injury and $25,000 per person
Complete the personal history questionnaire, form OBL 242, for each principal
Pay the $125 nonrefundable new license fee and $39 per principal for fingerprint processing
Maintain a permanent enclosed building with office and vehicle display space, and a permanently affixed sign in eight inch lettering
Renew on time. The renewal fee is $50 and a lapsed license carries a $25 late reinstatement fee

Detailed Information About the Nevada Auto Dealer Bond:

The tier decides the amount

NRS 482.345 sets the bond by what the licensee manufactures, distributes, rebuilds or sells.

Vehicles other than motorcycles, trailers or travel trailers: $100,000
Travel trailers or other dual purpose trailers with living quarters in their design: $100,000
Motorcycles: $50,000
Horse trailers designed without living quarters, and special purpose trailers with an unladen weight of 3,501 pounds or more: $50,000
Utility or other special use trailers with an unladen weight of 3,500 pounds or less, and trailers built to carry boats: $10,000

A typical Las Vegas or Henderson used car dealership sits in the $100,000 tier. A powersports shop selling motorcycles sits at $50,000. A small trailer lot can sit at $10,000. The DMV's own licensing packet lists the same three amounts on the bond form OBL 210 line.

It is a state license, not a county one

The obligee is the State of Nevada, and the bond is filed with the Department of Motor Vehicles, Occupational and Business Licensing, in Carson City. Clark County comes into it only because the DMV application requires a copy of your city or county business license as a supporting document. There is no separate Clark County dealer bond to buy.

Where the bond can be reduced

This is the provision most applicants have never heard of. Under NRS 482.345 the Department may reduce the required bond for a business that has been licensed and conducting itself satisfactorily, but no bond may be reduced to less than 50 percent of the amount otherwise required. It is a discretionary reduction for established licensees, not something a new applicant can ask for at the counter.

One more useful item: a single bond may cover more than one category of vehicle, and it may cover a principal place of business together with branches in the same county. Dealers who thought a second Las Vegas lot meant a second bond usually do not need one.

The second instrument nobody budgets for

The bond is not the only financial filing. The DMV licensing packet requires a garage liability policy including automobile liability, or a commercial auto policy, with minimum coverage of $95,000 per accident for bodily injury and $25,000 per person. You also need a permanent enclosed building with office space, display space for vehicles, and a permanently affixed sign with the business name in lettering eight inches high and clearly legible from the center of the nearest street.

Fees

The DMV packet lists a nonrefundable $125 new license fee, $39 per principal for fingerprint processing, a $50 license renewal fee, and a $25 late reinstatement fee.

A bond satisfies the state. It does not bring buyers to your lot. Any licensed dealer can also claim a free listing at BestAutoDealerIn.com, a directory searchable by zip code and state, with a backlink that helps your own SEO, sends referrals your way, and gets a blog post written about your dealership.

Eligibility and Requirements for a Nevada Auto Dealer Bond:

A surety authorized to write bonds in Nevada, on DMV form OBL 210
Bond amount matching the NRS 482.345 category for the vehicles you actually sell
State of Nevada as obligee, filed with the Department of Motor Vehicles
Business name on the bond matching the DMV license application exactly
Thirty days written notice to the Department before a cancellation takes effect
Credit review of the principals, which shapes the rate rather than eligibility for most applicants

Nevada Auto Dealer Bond FAQs:

Is there a Clark County auto dealer bond?

No. Vehicle dealers are licensed by the Nevada DMV, Occupational and Business Licensing, and the bond runs to the State of Nevada on form OBL 210. Clark County or your city issues a business license, and a copy of it goes into the DMV application packet, but the county is not the obligee on any bond.

How much is the Nevada dealer bond?

It depends on what you sell. NRS 482.345 sets $100,000 for a dealer in vehicles other than motorcycles and trailers, and for travel trailers or dual purpose trailers with living quarters in their design. It sets $50,000 for motorcycles and for horse trailers without living quarters or special purpose trailers of 3,501 pounds or more. It sets $10,000 for utility or special use trailers of 3,500 pounds or less and for boat trailers.

I sell cars and small utility trailers. Do I need two bonds?

No. NRS 482.345 allows one bond to cover more than one category of vehicle, and it can cover a principal place of business along with branches in the same county. Write it at the highest amount that applies to what you sell.

Can my bond amount be lowered after I have been in business a while?

The Department may reduce the required bond for a licensee whose conduct has been satisfactory, but no bond may be reduced to less than 50 percent of the amount otherwise required by NRS 482.345. That is a DMV decision for established licensees, not something available at first licensure.

Who does the bond protect?

The consumer. The bond is for the use and benefit of the consumer and covers breaches, fraud and fraudulent representation by the licensee, its representatives and salespeople acting within the scope of their employment. If the surety pays a claim, the dealer reimburses the surety. It is not insurance for the dealership.

Do I need anything else besides the bond?

Yes. The DMV packet requires a garage liability policy including automobile liability, or a commercial auto policy, at a minimum of $95,000 per accident for bodily injury and $25,000 per person. It also requires an established place of business with an enclosed building, display space, and a permanently affixed sign in eight inch lettering legible from the center of the nearest street.

How much notice does the surety have to give to cancel?

Cancellation on form OBL 210 is effective thirty days after the Department of Motor Vehicles receives the notice. If the bond is not replaced in that window, the license is at risk.

What does the bond cost?

Nevada does not set premium. A surety prices the bond off underwriting: personal credit of the principals, business financials, time in the industry, and any prior claims or license discipline. Because Nevada tiers run from $10,000 to $100,000, the same rate produces very different dollars depending on your category. Get a quote against the amount your license class actually requires.

How do buyers find my dealership online?

A free listing at BestAutoDealerIn.com puts any licensed dealer in a directory searchable by zip code and state. The listing carries a backlink that supports your own SEO, sends referrals, and listed dealerships can get a blog post written about them.