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Why is a Nevada Motor Vehicle Dealer Bond Required?
The surety bond protects any individual who is injured by the actions of the bonded principal, its employees or its agents. Specifically, any act of fraud or fraudulent representation, or violation of Chapter 482 or Chapter 490 of the Nevada Revised Statutes or the Nevada Administrative Code committed by the principal and resulting in damages to a third party may constitute a valid claim against the bond. Total liability to the surety company and the principal is limited to the aggregate amount of the bond. The surety bond is continuous in nature unless canceled by the surety company by providing 30 days advance written notice to the State of Nevada Department of Motor Vehicles.
Motor Vehicle Dealer Bonds And Getting Your Nevada Business License/Registration
DEALER, DISTRIBUTOR, LESSOR, MANUFACTURER AND REBUILDER INFORMATION LICENSING REQUIREMENTS
- Complete Application for Business License (OBL237)
- Provide Personal History Questionnaire (OBL242) for each principal of the business listed on the license application
- Furnish one set of fingerprints for each principal of the business listed on the application. Fingerprinting must be issued by an authorized NV DMV representative or a law enforcement agency.
- Complete DPS Fingerprint Background Waiver (OBL256) by each principal submitting a set of fingerprints.
- Post a surety bond (OBL210) or a deposit in lieu of bond for the required amount: $10,000 for utility or boat trailers with an unladen weight of 3,500 or less; $50,000 for motorcycles, horse trailers without living quarters or utility trailers with an unladen weight of 3,501 or more; and $100,000 for all other vehicle types.
- Provide certificate of insurance showing automobile liability coverage. More information in OBL273
- Furnish a copy of applicable City or County business license
- File Fictitious Firm Name if applicable.
- Provide a Copy of Certificate of Incorporation and Corporate filing, with names of the officers, filed with the Nevada Secretary of State’s Office, if applicable.
- Provide Federal Employer Identification Number (FEIN) of the business
- An established place of business within the state, with a permanent enclosed building large enough to accommodate an office and sufficient space to display one or more vehicles. The established place of business must also have boundaries, which are clearly marked.
- A permanently affixed display sign with the name of the business in lettering eight inches high, formed by lines that are at
least one inch wide. The display sign must be clearly legible from the center of the nearest street or roadway. - Two color photographs of business location that clearly show the exterior of the business to include the display sign.
- A site inspection conducted by the Department.
- Other documentation may be required by the Licensing Department
Off-Highway Vehicle Dealer and Salesman Licensing Packet (OBL 329)
Information Sheet - Dealer, Distributor, Lessor, Manufacturer, and Rebuilder (OBL 243)
Information Sheet - Broker (OBL 267)
Information Sheet - Class A Body Shop (OBL 247)
Additional Nevada Motor Vehicle Dealer Bond Resources & Links
Nevada Department of Motor Vehicles – Occupational & Business Licensing
Vehicle Industry Business License Bond (OBL 262) Wrecker, Salvage Pool
Vehicle Industry Business License Bond (OBL 269) Body Shop, Garage
Vehicle Industry Business License Bond (OBL 332) Transporter
The state of Nevada utilizes the following definitions for those in the vehicle industry. All businesses meeting these definitions are subject to state licensing requirements as mandated by state law.
“Dealer” and “vehicle dealer” defined.
1. “Dealer” or “vehicle dealer” means any person who:
(a) For compensation, money or other thing of value sells, exchanges, buys, offers or displays for sale, negotiates or attempts to negotiate a sale or exchange of an interest in a vehicle subject to registration under this chapter or induces or attempts to induce any person to buy or exchange an interest in a vehicle;
(b) Represents himself as having the ability to sell, exchange, buy or negotiate the sale or exchange of an interest in a vehicle subject to registration under this chapter or in any other state or territory of the United States;
(c) Receives or expects to receive a commission, money, brokerage fee, profit or any other thing of value from the seller or purchaser of a vehicle; or
(d) Is engaged wholly or in part in the business of selling vehicles or buying or taking in trade vehicles for the purpose of resale, selling or offering for sale or consignment to be sold or otherwise dealing in vehicles, whether or not he owns the vehicles. NRS 482.020
“Distributor” defined. “Distributor” means a person, other than a manufacturer, who is engaged in the business of selling new motor vehicles to dealers. NRS 482.028
“Lease,” “long-term lessee,” “long-term lessor,” “short-term lessee” and “short-term lessor” defined. For the purposes of regulation under this chapter and of imposing tort liability under NRS 41.440, and for no other purpose:
1. “Long-term lessor” means a person who has leased a vehicle to another person for a fixed period of more than 31 days.
2. “Short-term lessor” means a person who has leased a vehicle to another person for a period of 31 days or less, or by
the day, or by the trip. NRS 482.053
“Manufacturer” defined. “Manufacturer” means every person engaged in the business of manufacturing motor vehicles, trailers or semitrailers. NRS 482.060
“Rebuilder” defined.
1. “Rebuilder” means a person engaged in the business of reconstructing motor vehicles by the alteration, addition or substitution of substantial or essential parts or assembling of replica or specially constructed vehicles from unassembled parts.
2. Nothing in this section shall be construed to require any licensed new or used vehicle dealer to secure a license as a
rebuilder in conjunction with rebuilding in his own facilities. NRS 482.097