Virginia Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
Virginia Auto Dealer Bond Key Facts
Governed by Va. Code § 46.2-1527.2.
The basics
What Is an Auto Dealer Bond in Virginia?
A Virginia auto dealer bond is a $50,000 surety bond you must file with the Virginia Motor Vehicle Dealer Board (MVDB) to get a motor vehicle dealer license. Virginia requires it for every original dealer license applicant under Code of Virginia § 46.2-1527.2, and you must keep it in force for your first three consecutive years in business.
Good to know - Required for every original Virginia motor vehicle dealer license. You must file a $50,000 surety bond with the Motor Vehicle Dealer Board and keep it in force for your first three consecutive years in business. During those three years you also take part in the Motor Vehicle Transaction Recovery Fund. After three years with no claim against your bond or the Fund, you may elect to keep continuous bonding instead of paying into the Fund.
The bond is a promise that you will run your dealership honestly — that you will not commit fraud, make a fraudulent statement, or break Virginia dealer law. If you break that promise and harm a customer, they can file a claim against your bond.
The bond protects the public, not the dealer. A buyer, seller, or lender who is harmed by a covered act can recover money against the bond, up to the $50,000 coverage amount. If the surety pays a claim, you must pay the surety back.
For your first three years, Virginia pairs the bond with the Motor Vehicle Transaction Recovery Fund — a state fund that can also pay claims against dealers. After three years with a clean record, you may choose to keep continuous bonding on your own (Article 3.2) and stop paying into the Fund.
Qualification
What You Need to Qualify for a Virginia Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for, or renewing, a Virginia motor vehicle dealer license through the Motor Vehicle Dealer Board (MVDB).
- You know your $50,000 bond is required for every original dealer license and must stay in force for your first three consecutive years in business.
- Your bond is written by a corporate surety licensed to do business in Virginia and approved by the Attorney General.
- Your dealer-operator has finished the required pre-license course and passed the qualification test at a DMV Customer Service Center.
- You have a genuine business location that meets Virginia zoning rules, with the MVDB 19 zoning form signed by your local zoning official within the last 30 days.
- You have your business details ready — legal name, ownership, Virginia dealership address, and any trading-as (fictitious) name — for the bond and the MVDB application.
Step by step
How to Get an Auto Dealer Bond in Virginia: Step by Step
Confirm you need a Virginia dealer license and bond
If you sell, display, or offer more than a few vehicles a year in Virginia, you need a motor vehicle dealer license from the MVDB, and every original license requires a $50,000 surety bond. Read the MVDB "How to Become a Dealer" guide to confirm your license type before you start.
How to Become a Dealer ChecklistComplete dealer-operator training and pass the test
Your dealer-operator (the person who runs the dealership day to day) must finish the required pre-license course and then pass the qualification test at a DMV Customer Service Center. Apply for the test with form MVDB 57 and pay the $50 test fee.
Dealer Operator/Salesperson Qualification Test Application (MVDB 57)Set up a location and get zoning approval
Line up a real dealership location that meets Virginia and local rules, then have your local zoning official complete and sign the MVDB 19 zoning form. The zoning signature must be dated no more than 30 days before you submit your application.
Zoning Compliance Certification (MVDB 19)Get your $50,000 dealer bond
Buy your Virginia Motor Vehicle Dealer Bond and we handle the paperwork. We issue the $50,000 bond on the official MVDB 2 form and provide it for your application — in most cases we can help file it with the MVDB for you. There is no bond form for you to fill out or sign.
Submit your MVDB license application and fees
Complete the initial motor vehicle dealer license application (form MVDB 10) and mail or bring the full package to the MVDB — including your zoning form, qualification test results, business documents, and fees. Send original documents; incomplete packages are not accepted.
Motor Vehicle Dealer License Application for Initial (MVDB 10)Pass your opening inspection and stay bonded
Once your application is complete, an MVDB field representative schedules an opening inspection at your dealership. Pass it and you receive your licensing materials and can start selling. Keep your bond in force the whole time and renew before it expires.
Paperwork
Virginia Dealer Bond Forms & Documents
The official $50,000 state bond form. We issue this for you and, in most cases, help file it with the MVDB — you do not fill it out yourself.
View formThe initial dealer license application you complete and submit to the MVDB.
View formSigned by your local zoning official within 30 days of submitting your application.
View formComplete this to take the dealer-operator qualification test at a DMV Customer Service Center.
View formThe MVDB list of current license, Recovery Fund, and test fees.
View formYou'll also need
Cost
How Virginia Auto Dealer Bond Pricing Works
You do not pay the $50,000. That figure is the bond’s coverage — the most that claims can collect. You pay a premium, which is a small percentage of the $50,000 bond amount.
Your premium is set by underwriting, based mainly on your personal credit. Well-qualified applicants pay a low rate; higher-risk applicants pay more. The premium is separate from your MVDB fees — the dealer license fee, the Motor Vehicle Transaction Recovery Fund assessment, and the $50 qualification test fee.
Worked example
Every Virginia motor vehicle dealer posts the same $50,000 bond. You do not pay $50,000 — you pay a premium on that amount, often a few hundred dollars a year for well-qualified applicants. Start a quote to see your rate.
Filing
Filing Information
Virginia Motor Vehicle Dealer Board (MVDB)
Filing notes
Virginia dealer licensing runs through the Motor Vehicle Dealer Board (MVDB). Your $50,000 bond is filed with the MVDB together with your license application — the Board must have an accepted bond on file before it issues your license.
We issue your Virginia Motor Vehicle Dealer Bond on the official MVDB 2 form and provide it for your application — in most cases we can help file it for you. There is no bond form for you to fill out or sign.
Keep the bond in force for at least your first three consecutive years with no gap in coverage. During those three years you also participate in the Motor Vehicle Transaction Recovery Fund. After three years with no claim against your bond or the Fund, you may elect continuous bonding under Article 3.2 (§ 46.2-1527.9 et seq.) and stop paying Fund fees.
FAQ
Virginia Auto Dealer Bond FAQ
Yes. Virginia requires a $50,000 surety bond for every original motor vehicle dealer license under Code of Virginia § 46.2-1527.2. You file it with the Motor Vehicle Dealer Board (MVDB) and keep it in force for your first three consecutive years in business.
The bond amount is $50,000. That is the coverage, not your cost — you pay only a premium, which is a small percentage of the $50,000, based mainly on your credit.
At least your first three consecutive years as a licensed dealer, with no gap in coverage. After three years with no claim against your bond or the Recovery Fund, you may elect to keep continuous bonding under Article 3.2 instead of paying into the Fund.
The Recovery Fund is a state fund that can pay claims against dealers. For your first three years you both post the $50,000 bond and pay into the Fund. The bond is always required; the Fund is the piece you can drop after three clean years by choosing continuous bonding.
The bond must come from a corporate surety licensed to do business in Virginia and approved by the Attorney General. We issue your bond on the official MVDB 2 form and, in most cases, help file it with the MVDB — you do not fill out the bond form yourself.
It backs your promise not to commit fraud, make a fraudulent statement, or violate Virginia dealer law. A buyer, seller, or lender harmed by a covered act can recover against the bond, up to the $50,000 coverage amount.
You pay a premium, not the full $50,000. The premium is a small percentage of the bond amount, based mainly on your credit, and it is separate from the MVDB license fee, the Recovery Fund assessment, and the $50 qualification test fee. Start a quote to see your rate.
With the Motor Vehicle Dealer Board, at 2201 West Broad Street, Suite 104, Richmond, VA 23220. The bond is submitted with your dealer license application; the MVDB must have an accepted bond on file before it issues your license. Questions: (804) 367-1100.
Sources
Last verified 2026-07-02. Requirements change - confirm current details with Virginia Motor Vehicle Dealer Board (MVDB) before you file. This page is informational and not legal advice.
FAQ
Virginia Auto Dealer Bond Questions
The cost of a Virginia auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Virginia auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Virginia license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
