How to get a used car dealer license in Virginia
A practical walkthrough of the Motor Vehicle Dealer application — fees, bond, timeline, and what to expect at each step. Verified against the official agency as of June 2026.
Getting a Motor Vehicle Dealer used-car dealer license in Virginia:
- Surety bond required
- $50,000
- Application fee
- $225 + $350 recovery fund (new dealers)
- License term
- Annual
- Typical timeline
- 4 – 8 weeks
- Typical first-year cost
- $900 – $2,200
This guide is informational and does not replace official Virginia requirements. Always verify with the Virginia Motor Vehicle Dealer Board (MVDB) before applying.
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Who can apply for a Motor Vehicle Dealer license
Virginia requires a Motor Vehicle Dealer license for anyone who sells five or more vehicles in a 12-month period. It's issued by the Virginia Motor Vehicle Dealer Board (MVDB).
In Virginia this is also commonly called an auto dealer license, car dealer license, or motor vehicle dealer license — all the same Motor Vehicle Dealer authority to sell used vehicles.
- An established place of business in Virginia zoned for vehicle sales, with an office, lot, and sign meeting MVDB standards
- Completion of the required dealer pre-licensing course (for new dealer-operators)
- A $50,000 surety bond filed with the board (Va. Code § 46.2-1510)
- A registered Virginia business entity and sales-tax registration
- A clean background for the applicant and owners
- A passing inspection of the dealership location
Step-by-step process
- 1
Secure a compliant location
Get a Virginia location zoned for vehicle sales with an office, display lot, and signage that meets MVDB standards. The board inspects the site before licensing.
- 2
Complete the dealer pre-licensing course
New dealer-operators must complete the MVDB-required pre-licensing course covering Virginia dealer law and operations. Keep the certificate for your application.
- 3
Get your $50,000 surety bond
Buy a $50,000 motor vehicle dealer surety bond (Va. Code § 46.2-1510) and file it with the board. You pay an annual premium, not the full amount, and must maintain it the whole time you're licensed.
- 4
Submit the application and fees
File the application with the MVDB, pay the $225 application fee, and — if you've been in business fewer than three years — the $350 contribution to the Motor Vehicle Transaction Recovery Fund. Include your bond, course certificate, and business documents.
- 5
Pass the location inspection
An MVDB representative inspects your dealership to confirm the office, lot, signage, and records meet the board's requirements. Have everything operational before the visit.
- 6
Receive your license and dealer plates
Once approved, you're a licensed Virginia motor vehicle dealer and can obtain dealer plates through the DMV to operate, buy at auction, and retail used vehicles.
Virginia dealer license cost — fees breakdown
| Item | Amount |
|---|---|
Application fee | $225 |
Transaction Recovery Fund For dealers in business fewer than three years. | $350 |
Surety bond premium (annual) Premium on the $50,000 bond, by credit. | $250 – $1,500 |
Pre-licensing course Required for new dealer-operators. | Varies |
Dealer plates (DMV) Obtained through the DMV after licensing. | Varies |
Surety bond requirement
Virginia requires every used-vehicle dealer to post a $50,000 surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.
You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1-5%of the bond's face value. Your actual premium depends on personal credit and business history.
Virginia requires a $50,000 motor vehicle dealer surety bond under Va. Code § 46.2-1510, filed with and maintained at the Motor Vehicle Dealer Board for as long as your license is active. You pay an annual premium (not the full bond), based on your credit.
Renewal
Virginia motor vehicle dealer licenses renew annually. Keep your $50,000 bond filed with the board, your insurance current, and your location compliant. The MVDB sends renewal notices; renew before expiration to keep operating.
Common questions
When do I need a Virginia dealer license?+
Virginia defines a motor vehicle dealer as anyone who sells five or more vehicles in a 12-month period. Sell that many without a license from the Motor Vehicle Dealer Board and you're operating illegally.
What is the $350 Transaction Recovery Fund fee?+
It's a contribution to Virginia's Motor Vehicle Transaction Recovery Fund, which compensates consumers harmed by a dealer. Dealers who have been in business fewer than three years pay the $350 contribution on top of the $225 application fee.
Do I have to take a course to get a Virginia dealer license?+
Yes — new dealer-operators must complete the MVDB-required pre-licensing course on Virginia dealer law and operations before being licensed. You include the certificate of completion with your application.
Who regulates car dealers in Virginia?+
The Virginia Motor Vehicle Dealer Board (MVDB) licenses and regulates motor vehicle dealers, handles the bond and recovery fund, and inspects dealership locations. You can reach them at (804) 367-1100.
How long does it take to get licensed in Virginia?+
Most applicants are licensed in about 4 to 8 weeks once the location is ready, the course is done, and the bond is filed. Scheduling and passing the MVDB inspection is usually the longest step.
How much does a Virginia dealer license cost?+
Plan for about $900 – $2,200 in the first year. That covers the $225 + $350 recovery fund (new dealers) application fee and the $50,000 surety bond — you pay an annual premium of roughly 1-5% of the bond, not the full amount — plus business-formation, facility, and dealer-plate costs. See the full fees breakdown above.
How do I get dealer plates in Virginia?+
Dealer plates are separate from the license itself. Once your Motor Vehicle Dealer license is approved, you apply for dealer plates and pay a per-plate fee (listed in the fees breakdown above). You can't obtain dealer plates before the license is issued.
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