Individuals applying for a vehicle dealer license in the State of Virginia must submit a $50,000 surety bond to the Virginia Motor Vehicle Dealer Board (MVDB) as part of their licensing requirements. There are two license types for dealers:
Franchise Dealer
- a dealer of new motor vehicles that has a franchise agreement with a manufacturer or distributor of new motor vehicles, trailers, or semitrailers to sell new or used motor vehicles under the trademark of a manufacturer or distributor, regardless of the age of the motor vehicles, trailers or semitrailers.
Independent Dealer
- a dealer of used motor vehicles
The bond protects individuals who suffer financial losses due to the principal’s or principal’s employee’s unethical and unlawful behavior, and guarantees the principals comply with the provisions of Chapter 15, Title 46.2 of the Virginia Code. Virginia dealer bonds are continuous and remain in effect unless violated or canceled by the surety. The surety must give written notice to the MVDB 30 days prior to the effective date of termination.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.