Motor Vehicle Dealers - New or New and Used Vehicles

The Virginia Motor Vehicle Dealer Bond is a surety bond required by the State of Virginia for businesses engaged in selling new motor vehicles or both new and used motor vehicles. This bond ensures compliance with state licensing laws and regulations governing motor vehicle dealerships.

Motor vehicle dealers who sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing requirements. The bond amount is set at $50,000 and provides financial protection to both consumers and the state against potential violations of dealer licensing laws, fraudulent practices, or failure to comply with regulatory requirements.

The bond protects consumers who may suffer financial losses due to a dealer's failure to deliver clear title, misrepresentation of vehicle condition, or other violations of Virginia's motor vehicle dealer regulations. It also protects the State of Virginia by ensuring dealers operate in accordance with established laws and standards. The bond has a one-year term and is renewable annually to maintain continuous coverage and licensing compliance.