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 September 2026.
Getting a Motor Vehicle Dealer used-car dealer license in Virginia:
- Surety bond required
- $50,000
- Application fee
- $225 + $350/yr recovery fund (first 3 years)
- 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 Independent Dealer-Operator course and a passing score on the MVDB qualification exam
- A $50,000 surety bond filed with the board for your first three years (Va. Code § 46.2-1527.2)
- 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-operator course and exam
New independent dealer-operators must complete the two-day Independent Dealer-Operator course and pass the MVDB qualification exam ($50 test fee; 64 of 80 to pass). Dealer-operators recertify every 24 months.
- 3
Get your $50,000 surety bond
Buy a $50,000 motor vehicle dealer surety bond (Va. Code § 46.2-1527.2) and file it with the board. You pay an annual premium, not the full amount. New licensees must keep the bond for three consecutive years.
- 4
Submit the application and fees
File the application with the MVDB, pay the $225 application fee and the first $350 annual contribution to the Motor Vehicle Transaction Recovery Fund (new dealers pay it for each of their first three years). 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 Each of your first three years ($1,050 total). | $350/yr |
Surety bond premium (annual) Premium on the $50,000 bond, by credit. | $250 – $1,500 |
Dealer-operator course + exam Required for new independent dealer-operators. | Course varies; $50 exam |
Dealer plates (DMV) Obtained through the DMV after licensing. | Varies |
The Virginia auto dealer bond: $50,000
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 § 46.2-1527.2, filed with the Motor Vehicle Dealer Board and kept for your first three consecutive years of licensing (dealers who don't participate in the recovery fund must stay bonded). You pay an annual premium (not the full bond), based on your credit.
Renewal
Virginia motor vehicle dealer licenses run for 12 months and expire on the last day of the month; you can renew up to 30 days late with a late fee. Keep your bond filed through your first three years, 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. New dealers pay $350 a year for their first three consecutive years ($1,050 in total), on top of the $225 application fee.
Do I have to take a course to get a Virginia dealer license?+
Yes — new independent dealer-operators must complete the two-day Independent Dealer-Operator course and pass the MVDB qualification exam before being licensed, then recertify every 24 months.
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/yr recovery fund (first 3 years) 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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