Virginia Auto Dealer Bond

1. Apply for Your Bond

You can buy your auto dealer surety bond in three quick steps. First, complete our online application to begin the process. With numerous bond programs available, we have provided bonds to more than 99% of our applicants. 

When Tricia contacted our surety bond company, she was applying for a new dealership license. She worried that buying a bond would be complicated, and she was pleased by our streamlined process. After paying the bond premium online, Tricia had the required bond and finalized her license application.

2. Get a Quote

When you apply for a Virginia surety bond online, you can receive an immediate quote. In some cases, a bond application is complex and requires greater review. In these situations, we’ll provide a bond quote within 48 hours.

We have more than 10 years of experience. Our team takes pride in providing a great customer experience and helping applicants get the bond they need.

3. Purchase Your Bond

After reviewing your auto dealer bond quote, the final step is to pay the premium. It only takes a minute or two to complete your purchase online. 

After doing so, you’ll receive your bond via email. Upon request, we can also mail your bond to you. With your auto dealer bond in place, you can complete the license application. 

If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – contact us or call us at (877) 514-5146.

Virginia’s Motor Vehicle Transaction Recovery Fund, managed by the state’s Treasury, requires that you hold a motor vehicle dealer bond with the value of $50,000. To participate in the fund, dealers pay $350 annually for the first three years and $100 each year thereafter. Bonds must be renewed annually.

Dealerships choosing to participate in the fund must hold the required $50,000 surety bond for the first three years. The surety bond is not required after that time. The maximum amount paid on a single claim is $25,000.

If the total amount in the Motor Vehicle Transaction Recovery Fund falls below $250,000, participating dealerships must make an additional contribution to the fund.

License renewal applicants who choose not to participate in the Motor Vehicle Transaction Recovery Fund after the first three years must maintain a $100,000 bond continuously. The maximum amount paid on a single claim is $20,000. The aggregate amount of all claims shall not exceed $100,000.

To renew an auto dealer license in Virginia, you must provide your renewed bond documentation. This and other license renewal documentation must be submitted to the Motor Vehicle Dealer Board. It should be postmarked no later than the last day of the month in which the dealer license expires.

Your surety bond company will contact you prior to the bond expiration date to renew the bond. You’ll be provided with an updated premium rate. To finalize the renewal, pay the bond premium online.

The claimant will file the claim directly with the surety bond company. The surety company then conducts a thorough investigation of the claim to determine its validity. If the claim is not validated, the surety company denies the claim.

If the claim is deemed to be valid, the surety bond company pays the claimant up to the bond’s penal sum. After the claimant is paid, the Virginia dealership is responsible for reimbursing the surety bond company in full.

The Motor Vehicle Dealer Board in Virginia is responsible for processing auto dealer license applications and renewals. To apply for a Virginia auto dealer license you are required the following documents:

• Bond application
• Application for dealer plates with proof of liability insurance for each plate
• License application for initial license
• Certificate of Zoning Compliance (must be dated within 30 days)
• Salesperson application for initial and transfers
• A sales license (for dealer-operators)
• A copy of a compliant Buyer’s order
• State Corporation Commission documentation
• State Corporation Commission filing documents
• Required fees

Mail the auto dealer licensing documents to:

Motor Vehicle Dealer Board
2201 W. Broad St #104
Richmond, VA 23220