Motor Vehicle Dealer Bond in Virginia
$50,000 bond. Plain-English requirements, filing process, and what you should expect to pay.
What this bond requires in Virginia
Bond must be issued by a corporate surety licensed in the Commonwealth and approved by the Virginia Attorney General. Dealers also pay a $350 annual Motor Vehicle Transaction Recovery Fund fee for the first three years. After three consecutive claim-free years, the bond is no longer required and the annual fee drops to $100 (Va. Code § 46.2-1527.1(D)). A blanket $1 million bond held by a qualifying 501(c)(6) nonprofit on behalf of its members satisfies the bonding requirement for renewals.
Who requires it
The motor vehicle dealer bond is required by the Virginia Motor Vehicle Dealer Board (MVDB) under Va. Code § 46.2-1527.1 et seq. (bond amount set in § 46.2-1527.2).
How to file in Virginia
Apply to the Virginia Motor Vehicle Dealer Board using form MVDB-10 along with form MVDB-2 (Motor Vehicle Dealer Bond), which must be dated within 30 days of submission. The original $50,000 surety bond, $350 Recovery Fund fee, dealer certificate fee ($270), proof of liability insurance, zoning certification, buyer order template, and (for LLC/Corp) State Corporation Commission registration are submitted to MVDB. MVDB reviews the package and schedules an opening inspection by a field representative; once passed, licensing materials are issued. Renewal packets are mailed by MVDB approximately 30 days before expiration; renewals received more than 30 days late are treated as new/original applications.
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Common questions
Is a motor vehicle dealer bond required in Virginia?
Yes. Virginia requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $50,000.
How much is the bond in Virginia?
The bond amount is $50,000. Your annual premium is a small percentage of that, based on credit and experience.
Who requires the bond?
The bond is required by the Virginia Motor Vehicle Dealer Board (MVDB).
How is the bond filed?
Apply to the Virginia Motor Vehicle Dealer Board using form MVDB-10 along with form MVDB-2 (Motor Vehicle Dealer Bond), which must be dated within 30 days of submission. The original $50,000 surety bond, $350 Recovery Fund fee, dealer certificate fee ($270), proof of liability insurance, zoning certification, buyer order template, and (for LLC/Corp) State Corporation Commission registration are submitted to MVDB. MVDB reviews the package and schedules an opening inspection by a field representative; once passed, licensing materials are issued. Renewal packets are mailed by MVDB approximately 30 days before expiration; renewals received more than 30 days late are treated as new/original applications.
What does the bond cover?
Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.
Is a surety bond the same as insurance?
No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.
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