How to Get a Used Car Dealers License in Nebraska

Are you dreaming of running your own used car dealership in Nebraska? You’ve come to the right place for guidance! Getting a used car dealer’s license may sound tough, but it’s doable with the right help. So, you’re wondering: What steps do I need to take to get a used car dealer’s license in Nebraska?

We will guide you through the process of getting your dealer’s license. This includes picking the correct type of license and meeting the legal and financial needs. Soon, you will understand the important steps to make your used car dealership dream real.

Key Takeaways:

  • Nebraska offers four categories for dealer license types: Combination motor vehicle and trailer, trailers, motorcycle, and multiple licenses can be applied for if relevant.
  • A $50,000 auto dealer bond is required for new or used license applications for trailers, vehicles, or motorcycles.
  • After submitting the application, a site inspection is required, and upon passing, a $400 licensing fee is due to obtain the license.
  • The dealer license must be renewed annually for it to remain active.
  • The location for the business must meet specific guidelines, including having a name that describes the business accurately, space for at least 10 vehicles on display, a sign with specific requirements, operating hours, a listed telephone number, and either a service facility or a facility agreement with the county for repairs.

6 Steps to Get a Used Car Dealers License in Nebraska

1. Choose the Appropriate License Type

Before you get a used car dealer’s license in Nebraska, figure out the best license type for your business. Nebraska has four dealer license types. Choose the one that fits your business best.

Combination Motor Vehicle and Trailer Dealer License

This license lets you sell new and used cars, motorcycles, and trailers. If your business sells a mix of these, get this license. New car dealers need to show their franchise agreement when they apply.

Trailer-Only Dealer License

The trailer-only dealer license is for businesses selling only new and used trailers. This license is for those not selling cars or motorcycles.

Motorcycle-Only Dealer License

Want to sell just new and used motorcycles? You need the motorcycle-only dealer license. It’s for dealers focused only on motorcycles, not cars or trailers.

Some businesses sell different types of vehicles and may need more than one license. Nebraska allows this to meet the various needs of auto dealers.

2. Register Your Business and Obtain Necessary Permits

The first step to becoming a licensed used car dealer in Nebraska is to register your business. You do this through the Nebraska Business Registration Portal. Here, you will say what type of business you’re running. You’ll also mention if you have employees and what you sell, like pre-owned cars or vehicle brokerage services.

Register with the Nebraska Business Registration Portal

By signing up on the state’s online portal, you get the permits you need. This allows you to legally run your used car dealership in Nebraska. You’ll get a Federal Employer Identification Number (FEIN) from the IRS. And also, a Nebraska state tax ID number.

Obtain a Federal Employer Identification Number (FEIN)

Getting a Federal Employer Identification Number (FEIN) from the IRS is important. It’s needed for hiring, taxes, and running your used car dealership in Nebraska.

Obtain a Nebraska State Tax ID Number

Besides the FEIN, you also need a Nebraska state tax ID number. You use this for keeping up with and paying your state business taxes in Nebraska.

3. Establish a Compliant Business Location

After registering your business and getting all required permits, you must pick a good spot in Nebraska for your used car dealership. Your business location has to meet some important rules to get your license.

Secure a Permanent Building and Display Lot

Firstly, find a building that you either own or rent for just your dealership. It must fit at least 10 cars outside for display. The Nebraska rules demand you have a solid place to run your business.

Meet Signage and Operational Hour Requirements

Your building sign must show the dealership name clearly in 8-inch letters for people to see from the street. Make sure this matches the name on your license. Also, have set hours when your dealership is open for business.

As part of applying for your license, include photos of your building and its sign. This is how the state makes sure you really have the right setup.

4. Obtain Required Insurance and Bonding

Starting as a used car dealer in Nebraska means you must get the right insurance and bond. This protects your customers and your business. It also makes sure you follow the state’s rules.

Secure Liability Insurance for the Dealership

To sell cars in Nebraska, you need liability insurance. This insurance helps if there’s an accident or damage from the cars you sell. Your application needs to show details like your dealership’s name, the insurance coverage, and the policy number. Also, think about getting insurance if you have workers.

Obtain a $50,000 Auto Dealer Bond

Aside from insurance, you also need a $50,000 bond for your Nebraska dealership. This bond shows you follow the state’s rules. It helps protect the public and the state from financial trouble due to your business. The yearly cost for this bond ranges from $500 to $7,500. Factors like your credit and business finances affect the price.

5. Submit Dealer License Application and Supporting Documents

To get your Nebraska auto dealer license, fill out the required form. This form lets you choose the type of license you need, such as for motor vehicles and trailers, trailers only, or motorcycles only. The necessary documents you also need to submit are as follows:

  • A copy of your zoning permit
  • A photograph of your premises, including the sign
  • A copy of your lease agreement
  • Any applicable franchise agreements

6. Undergo Site Inspection and Pay Licensing Fee

After applying, the board will review your location with an inspection. This is to make sure that your dealership meets the state’s rules, like having a big enough lot and being open enough hours. If you pass the inspection, the last step is to pay a $400 fee. Then, you’ll get your motor vehicle dealer license.

Keep in mind, you have to renew your Nebraska dealer license every year. This lets you legally sell pre-owned cars. Following these steps will help you get your vehicle sales license. Then, you can start a successful auto broker dealership in Nebraska.


This guide showed you how to get a used car dealer’s license in Nebraska step-by-step. It covered everything, from the types of licenses to what you need for your business. We looked at how to register your business, find a suitable location, and get the right insurance. Plus, we talked about the importance of following state laws to stay out of trouble.

To start your used car business in Nebraska, you must carefully follow all rules. By being well-prepared and paying attention to the details, you’ll sail through the licensing process. Then, you can start a rewarding career in selling cars.

Also, it is important to note that in Nebraska, it is illegal to rent or borrow a car dealer license. The state enforces strict regulations for obtaining and maintaining such a license, including requirements to own or lease a permanent business location, secure a surety bond, and obtain liability insurance.

The Nebraska Motor Vehicle Industry Licensing Board ensures compliance through site inspections and other enforcement measures. Violating these regulations by renting a dealer license can result in significant legal consequences, including fines and potential criminal charges​.

Good luck with your venture! If you’re aiming for a used car dealer license in Nebraska, this guide is for you. It offers a wealth of information, from what’s needed for a Nebraska auto dealer license to selling pre-owned cars. Keep focused, and if you need help, don’t be shy to ask the experts for advice.

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What are the different types of dealer licenses available in Nebraska?

Nebraska offers four main dealer license types. These are: Combination Dealer License, Trailer-only Dealer License, and Motorcycle-only Dealer License. Each serves specific vehicle types like motor vehicles and motorcycles.

What are the steps to register my business and obtain the necessary permits?

To begin, you should register your business on the Nebraska Business Registration Portal. Next, secure a Federal Employer Identification Number (FEIN) from the IRS. Finally, don’t forget to get a Nebraska state tax ID number too.

What are the requirements for my business location?

Your business spot must follow local zoning rules and regulations. Plus, it needs to meet requirements from the state’s dealer licensing board. This includes having a fixed building and display lot, correct signage, and operational hours.

What kind of insurance and bonding do I need to obtain?

New and used dealers must have liability insurance. You might also want workers’ compensation insurance. Additionally, get a $50,000 Auto Dealer Bond.

What documentation do I need to submit with my dealer license application?

For your dealer license application, provide a filled application, necessary documents, and payment. If dealing with new vehicles, include your franchise agreement too.