Nebraska Auto Dealer Bond$50,000 MVILB Requirement

The MVILB is a dedicated state board under the Nebraska DMV that specifically regulates motor vehicle dealers, auction operators, and related industry participants. Unlike most states where dealer licensing is handled by a general DMV or DOR division, Nebraska has a specialized board at 301 Centennial Mall South, Lincoln, NE 68509. The MVILB can be reached at (402) 471-2148. They oversee all dealer licensing, bond compliance, complaint investigations, and enforcement actions under the Nebraska Motor Vehicle Industry Licensing Act.

Nebraska auto dealer bonds ($50,000) cost $500-$5,000 annually depending on credit. With excellent credit (750+), expect $500-$1,000 (1-2%). Good credit (680-749) costs $1,000-$2,000 (2-4%). Fair credit (620-679) ranges $2,000-$3,500 (4-7%). Lower credit may require up to $5,000 (10%). For the $100,000 auction dealer bond, rates are roughly double.

Nebraska offers three main dealer license types under NRS §60-1406: (1) Combination Dealer License — the most common, authorizing sales of new or used motor vehicles, trailers, and motorcycles; (2) Trailer-Only Dealer License — limited to new or used trailer sales; and (3) Motorcycle-Only Dealer License — limited to new or used motorcycle sales. All three require a $50,000 surety bond. Auction dealers have a separate license type requiring a $100,000 bond.

The Combination Dealer License is Nebraska's most comprehensive dealer license. It authorizes the holder to sell new or used motor vehicles, trailers, and motorcycles — all under a single license. Most Nebraska dealers apply for this license rather than the more restrictive trailer-only or motorcycle-only options. The combination license requires the same $50,000 bond and $400 application fee as the specialized licenses.

The MVILB application fee is $400 for dealer, auction, and finance company licenses. Wrecker/salvage dealer licenses have a reduced $200 fee. Manufacturer/distributor licenses cost $600. In addition to the application fee, you will need the surety bond premium ($500-$5,000 for the $50,000 bond), insurance costs, and any local business license fees. The bond must be resubmitted with each annual renewal.

Yes. Nebraska requires dealers to submit their surety bond with both the initial license application and each subsequent renewal application. This is different from many states where the bond automatically continues. We send renewal reminders 60 days before expiration and can coordinate your bond renewal with your MVILB license renewal to ensure continuity.

Nebraska requires a $100,000 surety bond for auction dealers because auto auctions handle a high volume of transactions and large sums of money in a short period. The higher bond amount provides greater consumer and dealer protection given the elevated risk profile of auction operations. Standard motor vehicle, trailer, wholesale, and motorcycle dealers all require the standard $50,000 bond.

Yes, we secure Nebraska dealer bonds for all credit situations, including scores below 600. We work with multiple surety carriers that specialize in higher-risk applicants. Rates will be higher for lower credit scores, but approval is often possible. For the $50,000 bond, some carriers offer programs specifically designed for new dealers or those rebuilding credit.