Motor Vehicle Dealers - New or New and Used Vehicles

The State of West Virginia Division of Motor Vehicles Surety Bond is a $25,000 financial guarantee required for motor vehicle dealers who sell new vehicles or both new and used vehicles in West Virginia. This bond ensures compliance with state motor vehicle dealer regulations and licensing requirements.

Motor vehicle dealers operating in West Virginia must obtain this bond as part of their licensing process with the Division of Motor Vehicles. The bond specifically applies to dealers who sell new vehicles or dealers who sell both new and used vehicles, distinguishing them from used-only vehicle dealers who may have different bonding requirements.

The bond protects the State of West Virginia and consumers from financial harm resulting from the dealer's failure to comply with motor vehicle laws, regulations, and licensing requirements. This includes protection against fraudulent practices, failure to transfer titles properly, or other violations of dealer obligations that could result in financial loss to customers or the state.

The bond operates on an annual term from July 1 to June 30 each year, aligning with the state's licensing period. Dealers must renew this bond annually to maintain their license and continue operations. As part of the application process, dealers are required to provide an estimate of their monthly vehicle sales volume to help determine their bonding needs and compliance requirements.