What Is the Virginia Motor Vehicle Dealer Bond?
The Virginia motor vehicle dealer bond stands behind your dealership. If a buyer loses money from fraud or a title problem, they can file a claim. The surety covers it, and you repay the surety.
The Virginia bond is set at $50,000.
Who Needs This Bond in Virginia?
- Retail dealers in Virginia need the bond to be licensed.
- Wholesale and auction dealers are usually covered too.
- You keep the bond active each term.
How Much Will the Bond Cost?
Virginia's $50,000 bond commands premiums similar to other large-bond states. Most dealers with clean credit pay $500–$1,000 annually:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| Excellent Credit | $500 – $750 | 1% – 1.5% |
| Good Credit | $750 – $1,250 | 1.5% – 2.5% |
| Fair Credit | $1,250 – $1,750 | 2.5% – 3.5% |
| Credit Challenges | $1,750 – $2,250 | 3.5% – 4.5% |
| Past Credit Issues | $2,250 – $2,500+ | 4.5% – 5%+ |
How to Get Bonded — Step by Step
- Get a quote on this page. We match you with a strong surety.
- Complete your dealer application.
- Turn in the bond with the Virginia MVDB.
- Receive your license and open for business.
Renewal & Continuous Bond Coverage
Virginia dealer licenses renew every year. Your bond must stay in force the whole time. Start before it expires so you do not lose your license.
Frequently Asked Questions
Does the Virginia bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you repay the surety. It is not insurance for you.
How fast can I get bonded in Virginia?
We shop several sureties for you, often within a day. Many bonds are issued the same day for good credit.
How much does the bond cost?
You pay a yearly premium — a small percent of the bond amount. Good credit means a lower rate.
How a Surety Bond Works
A dealer bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.
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Start Your ApplicationRelated: All Virginia surety bonds · What is a surety bond? · How surety bond costs are calculated