Virginia Dealer Bond Overview
- Purpose: To protect the public from fraudulent vehicle dealing practices
- Who Needs It: All new and used vehicle dealers in Virginia
- Regulating Body: The Virginia Motor Vehicle Dealer Board
- Bond Amount: $50,000
- Minimum Price: $450, credit-based
What Is a Virginia Motor Vehicle Dealer Bond?
A Virginia motor vehicle dealer bond guarantees dealerships will follow state regulations or be held financially responsible if not.
The Virginia Motor Vehicle Dealer Board (MVDB) requires you to file a $50,000 surety bond to become a new or used vehicle dealer.
How Much Do Auto Dealer Bonds Cost in Virginia?
Virginia auto dealer bonds start at $450. We’ll run a soft credit check to determine your exact rate. Qualified applicants often pay no more than 3% of the bond amount. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Virginia Dealer Bond Work?
A Virginia vehicle dealer bond creates a legal contract between you, the state and the surety.
| Bond Party | Description |
|---|---|
| Principal | The motor vehicle dealer purchasing the bond |
| Obligee | The Virginia Motor Vehicle Dealer Board requiring the bond |
| Surety | The issuing surety provider |
This bond holds you financially responsible for following all Virginia vehicle dealer laws. Whether you’re a new or used dealer, you’ll need to:
- Represent a vehicle’s condition honestly
- Keep accurate records
- Handle consumer funds properly
If you break the law, harmed parties can file claims against your bond. The surety will pay valid claims up to the full $50,000 amount. However, you must reimburse the surety.
How Do I Get an Auto Dealer Bond in Virginia?
With SuretyBonds.com, you could get bonded same-day! Once we receive your quote request, we’ll send you an exact price within one business day.
These bonds are delivered right after payment via email. Be sure to sign and file it with the MVDB.
Can I Get Bonded With Bad Credit?
You may still be able to get a dealer bond with bad credit, but you’ll likely pay a higher premium. Apply for a quote today with no impact on your credit score.
How Do I Renew My Bond?
Virginia motor vehicle dealer bonds expire annually. Renewing takes just a few minutes. We’ll send you reminders with an invoice starting 90 days before expiration. Simply pay the premium to extend your bond term.
How Do I Update My Bond Information?
Typically, the MVDB accepts a bond rider form to update your information if needed. Email [email protected], and we’ll issue one if possible.
How to Become a Motor Vehicle Dealer in Virginia
The Motor Vehicle Dealer Board licenses all new and used dealers in the state. First, you’ll need to choose your dealer type:
- Franchise: A new vehicle dealer that has an agreement with a specific manufacturer or distributor
- Independent: A used vehicle dealer that sells motor vehicles, trailers, motorcycles and RVs
Then, follow these steps to apply for your license:
- Establish your business and obtain zoning paperwork. If you’re an LLC or corporation, register with the State Corporation Commission (SCC).
- Get a $50,000 surety bond.
- Complete all required documents as listed on the MVDB website. Be sure to register all employees as salespersons.
- Pass a site inspection.
Right after passing the inspection, the MVDB representative will give you the required licensing materials.
How Much Does It Cost to Become a Virginia Auto Dealer?
You can expect to pay at least $1,230 to get your new or used dealer license in Virginia. This includes the following costs.
| Fee | Amount |
|---|---|
| Dealer Certificate | $270 |
| Additional License Type Endorsement | $50 each |
| Motor Vehicle Transaction Recovery Fund | $350 annually for three years |
| Dealer Plates | $60 for the first two, $26 each after |
| Salesperson License | $50 each |
| Surety Bond | $450+ |
You’ll also need to consider liability insurance for all the cars in your lot.
