Who needs this bond?
Auto dealers in Virginia are required to obtain this bond as part of the licensing process. This includes independent dealers selling used vehicles as well as franchise dealers selling new vehicles under a manufacturer agreement. The bond is required by the Virginia Department of Motor Vehicles and must be in place before a dealer license can be issued or renewed. It helps ensure dealers operate ethically and comply with state regulations.
How much does this bond cost?
The cost of a Virginia auto dealer bond depends on the required bond amount and the applicant’s credit profile. Statewide bond amounts are set at $50,000 for motor vehicle dealers and $25,000 for dealers of trailers, travel trailers, motor homes, and motorcycles. Most applicants pay between 1% and 3% of the bond amount annually. Applicants with strong credit often qualify for the lowest rates, while those with lower credit may pay a higher premium. Rates are determined based on credit history, financial background, and industry experience.
How do I get this bond?
Obtaining a Virginia auto dealer bond is a straightforward process. First, complete a short bond application providing basic business and personal information. The surety company will review your credit and financial background to determine your rate. Once approved, you will receive a quote and can purchase the bond by paying the premium. After payment, the bond is issued and can be submitted with your dealer license application to the Virginia Department of Motor Vehicles.
Can I get this bond with bad credit?
Yes, it is possible to obtain a Virginia auto dealer bond with less-than-perfect credit. While applicants with strong credit typically receive the lowest rates, those with lower credit scores can still qualify. Surety companies consider multiple factors during underwriting, and may offer options for applicants working to improve their financial standing.
How fast can I get this bond?
Most Virginia auto dealer bonds can be issued quickly once the application is submitted. In many cases, applicants receive a quote the same day, and bonds are often issued within 24 hours after payment is completed. Processing time may vary slightly depending on the complexity of the application or credit review.
Are there any local requirements?
In addition to obtaining the required bond, Virginia auto dealers must meet statewide licensing requirements established by the Department of Motor Vehicles. These include maintaining a compliant business location, completing a pre-licensing course, passing the dealer-operator examination, and submitting all required documentation and fees with the license application. Local zoning approval and business location inspections may also be required before a license is issued.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
