Nevada Auto Dealer Bond

Nevada is one of the few states that requires a continuous-form dealer bond. Unlike annual bonds in most states, a continuous bond has no expiration date -- it remains in effect until it is formally canceled by the surety company or the dealer. However, you still pay annual premiums to the surety to keep the bond active. If premiums are not paid, the surety issues a cancellation notice to the Nevada DMV (30 days written notice required). The total aggregate liability is limited to the face amount of the bond. For a primer on how these products work, see <a href="/what-is-a-surety-bond/" class="text-amber-400 underline hover:text-amber-300">what is a surety bond</a>.

For the standard $100,000 bond, expect annual premiums of $1,000-$10,000 depending on credit. Excellent credit (750+) pays $1,000-$2,000 (1-2%). Good credit (680-749) costs $2,000-$4,000 (2-4%). Fair credit (620-679) ranges $4,000-$7,000 (4-7%). For the $50,000 motorcycle/trailer bond, rates are roughly half. The $10,000 small trailer bond costs $100-$1,000 annually. Use our <a href="/tools/calculator/auto-dealer-bond/" class="text-amber-400 underline hover:text-amber-300">auto dealer bond calculator</a> for a personalized estimate, or read the full <a href="/auto-dealer-bonds/cost/" class="text-amber-400 underline hover:text-amber-300">auto dealer bond cost breakdown</a>.

Dealers with 5 or more consecutive years of good standing with the Nevada DMV -- meaning no complaints, violations, or bond claims -- may request to reduce their bond by up to 50%. This could lower the standard $100,000 requirement to $50,000, significantly reducing your <a href="/surety-bond-cost/" class="text-amber-400 underline hover:text-amber-300">annual premium</a>. Contact the Occupational and Business Licensing Section to apply for the reduction. The DMV reviews your compliance history before approving the reduction.

At $100,000 for standard vehicles, Nevada has one of the highest dealer bond requirements in the nation (only <a href="/auto-dealer-bonds/maryland/" class="text-amber-400 underline hover:text-amber-300">Maryland's top tier at $300,000</a> is higher). Nevada's high bond reflects the state's significant automotive commerce -- particularly in the Las Vegas and Reno metro areas -- and provides substantial financial protection for consumers against dealer fraud, misrepresentation, or failure to deliver titles. This consumer protection mechanism is distinct from insurance -- learn about the <a href="/bond-vs-insurance/" class="text-amber-400 underline hover:text-amber-300">key differences between bonds and insurance</a>.

Per NRS 482.3255, disqualifications include: Class A or B felony conviction (any time), Class C, D, or E felony within 10 years, gross misdemeanor within 10 years, misdemeanor violation of NRS Chapter 482 within 20 years, falsification on the application, or evidence of unfitness to engage in the business of a dealer. Each principal must complete a Personal History Questionnaire (OBL-242) and fingerprinting.

Yes. Under NRS 482.347, each principal place of business and each branch location must be covered by the vehicle dealer bond. A dealer must procure a separate bond for each additional location. Each bond must be in the amount required for the vehicle types sold at that location. Compare this with <a href="/auto-dealer-bonds/illinois/" class="text-amber-400 underline hover:text-amber-300">Illinois, which also requires a bond per location</a>.

The surety company must give 30 days written notice to the Nevada DMV before bond cancellation takes effect. Bond cancellation should only occur if you are closing your dealership or transitioning to a different surety company with continuous coverage. Never allow a gap in bond coverage -- it results in immediate license suspension. If you are switching carriers, our <a href="/how-to-get-a-surety-bond/" class="text-amber-400 underline hover:text-amber-300">bonding process guide</a> explains how to maintain continuous coverage.

Nevada requires a permanently affixed display sign with the business name in lettering at least 8 inches in height with 1-inch wide lines. The sign must be visible from the roadway. You must submit two color exterior photographs of your business clearly showing the sign as part of your application. Temporary or removable signs do not qualify.

The Occupational and Business Licensing Section has offices in: Carson City (775-684-4690), Henderson (702-486-1371), Las Vegas Sahara (702-486-4930), Las Vegas Flamingo (702-486-8620), and Reno (775-684-3564). All offices can process dealer license applications, bond filings, and renewals.

Apply online with your business information and credit details for same-day approval on your Nevada dealer bond. The standard bond is $100,000 for cars, trucks, and SUVs under NRS 482.345, with lower amounts for motorcycles ($50,000) and small trailers ($10,000). We issue the bond on Form OBL-210 as a continuous-form bond with no expiration date. Submit the bond with your completed Form OBL-237, Personal History Questionnaire (OBL-242), fingerprinting results, automobile liability insurance, city/county business license verification, and facility photographs showing your 8-inch signage. You pay nothing until your bond is issued. See our <a href="/how-to-get-a-surety-bond/" class="text-amber-400 underline hover:text-amber-300">step-by-step bonding guide</a> for the full process.