The West Virginia Department of Motor Vehicles requires new and used auto dealers to obtain a $25,000 West Virginia auto dealer bond. Only repo-financial institutions, manufacturers, and transporters are exempt from this requirement.

Getting bonded means you need to pay only a fraction of this amount, called the bond premium. The surety bond amount, on the other hand, is the maximum penal sum that can be repaid on proven claims against you.

If you qualify for the standard bonding market, you can expect a bond premium in the range of 1%-3%. For the $25,000 West Virginia auto dealer bond, this means a bond cost of $250-$750.

To get your exact surety bond cost, you need to complete a full application with your surety. The surety reviews your personal and businesses finances, paying special attention to your personal credit score, assets and liquidity, and business experience. The bond price is set on the basis of the strength of your finances. If you are not considered a high-risk applicant, you will get a better price for your West Virginia auto dealer bond.

Our surety bond cost page is a great resource on how your bond price is formulated.

If your credit score is far from stellar, or you have past tax liens, civil judgments, or bankruptcies, there is still an opportunity to get the bond you need. Lance Surety Bonds offers a Bad Credit Program to help dealers with financial troubles.

You can expect a bond premium in the range of 5%-10%. Since it is riskier to bond bad credit applicants, the higher price compensates for it. Still, the program is an excellent way to get your West Virginia auto dealer bond and stay in business.

Here at Lance, we foster tight partnerships with multiple A-rated, T-listed surety companies. This allows us to select the best bonding option for you, and offer you a great bond rate, whatever your credit score is.

To start your bonding process, you can apply online today. You will get your free, no-obligations West Virginia auto dealer bond quote in no time.

For your exact bond cost, go ahead and submit your full application, so that we can assess your profile.

Call us at (877) 514-5146 for any questions you have about your application or the bonding process. Lance Surety Bonds’ experts will be happy to help you.

Check out our How to Get Bonded page for a complete overview of how bonding works.

Your West Virginia auto dealer must be active throughout your licensing period. That’s why you need to renew it before June 30th of each year, together with your West Virginia dealer license.

Getting bonded with Lance Surety Bonds comes with some great perks. We will send you a renewal reminder several months before the renewal deadline. If needed we will contact you again via mail, fax, and email. This way, you can be sure that you won’t miss the renewal date. Keeping your bond means that you can run your business in the new licensing period.

Don’t forget that your surety bond cost can change over time. This means that if you work on improving your financials, the next time you renew your bond, you can actually pay less for it.

To obtain your West Virginia car dealer license, you need to meet a range of requirements and provide a set of paperwork, in addition the auto dealer bond.

The West Virginia Department of Motor Vehicles requires you to complete an application form. You need to submit it together with a valid business license, dealer liability insurance, personal property tax receipts, and pictures of dealerships and business signs. The licensing period runs from July 1st to June 20th of each year. The application fee is $250 for most types of licenses.

It’s important to differentiate between surety bonds and insurance. Unlike the latter, bonds do not protect your business from unforeseen circumstances. They safeguard the interests of the state and of your customers.

West Virginia car dealers who don’t follow applicable rules might get a claim on their bond. The highest penal sum on proven claims in the state is $25,000. If a compensation needs to be repaid to affected parties, the surety pays it at first. However, dealers need to reimburse it soon after. That’s why claims can be a serious threat to your dealership’s success. They can also hamper the bonding process in the future.