Who needs this bond?
Anyone applying for a motor vehicle dealer license in West Virginia must post a $25,000 auto dealer bond as part of the licensing process. This applies to both new and used car dealers, as well as certain motor vehicle service license holders.
If you are opening a dealership or renewing your dealer license, the West Virginia DMV requires this bond before issuing or renewing your license. Repo-financial institutions are generally exempt from the bond requirement.
The bond is required to help ensure that dealers follow state laws and operate their businesses honestly. If a dealer violates licensing rules or causes financial harm to a customer or creditor, a claim can be filed against the bond. If a valid claim is paid, the dealer is responsible for reimbursing the bonding company.
How much does this bond cost?
The required bond amount in West Virginia is $25,000. However, you only pay a small percentage of that amount as your premium.
Most applicants pay between 1% and 3% of the bond amount. Your exact rate is based on factors such as your personal credit, financial background, industry experience, and licensing history.
Bond terms expire annually. For most new and used car dealers, the bond has a set expiration date of June 30. Motor vehicle service license bonds typically expire on December 31.
How do I get this bond?
Getting your West Virginia auto dealer bond is a straightforward process:
First, complete a short bond application. The bonding company will review your credit and basic financial information to determine your rate.
Once approved, you pay your premium and the bond is issued for filing with the DMV.
The bond is one of several requirements for obtaining your West Virginia dealer license. You will also need to submit a completed dealer license application, provide a copy of your personal property tax receipt, maintain a valid West Virginia business license, provide photos of your business location, and show proof of dealer liability insurance. A garage agreement or franchise agreement may also be required, depending on your dealership type.
Can I get this bond with bad credit?
Yes, many applicants with lower credit scores are still able to obtain a West Virginia auto dealer bond.
Your credit does affect your rate, so applicants with stronger credit profiles typically qualify for lower premiums. However, having past credit issues does not automatically prevent you from getting bonded. Rates may be higher, but options are available for most applicants.
How fast can I get this bond?
In many cases, auto dealer bonds can be issued quickly once your application is submitted and reviewed.
Applicants with strong credit are often approved the same day. Applications that require additional review may take slightly longer. Once approved and payment is received, the bond is issued for filing so you can move forward with your licensing process.
Are there any local requirements?
This bond is required statewide through the West Virginia DMV. The required bond amount is $25,000, and expiration dates vary depending on the type of dealership license you hold. Always confirm your specific licensing requirements with the DMV to ensure you are meeting the correct renewal and filing deadlines.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
