Virginia Dealer Licensing Guide
Getting Your Virginia Motor Vehicle Dealer License
An orientation to the process, what to expect, in what order, and who to ask.
Before You Begin
This guide is a general orientation only. Always confirm current requirements directly with the Virginia Motor Vehicle Dealer Board before spending money or submitting anything.
The authority on this process
Virginia Motor Vehicle Dealer Board (MVDB)
Phone: 804-367-1100
The MVDB administers dealer licensing. The Virginia DMV administers the dealer-operator test and handles certain other vehicle-license categories.
The governing law
Code of Virginia, Title 46.2, Chapter 15, including the bonding and Motor Vehicle Transaction Recovery Fund provisions.
Welcome and Congratulations
Virginia has two features worth knowing up front: pre-licensing education is delivered in person, and there is a state-administered dealer-operator test. Both require scheduling and should be planned early.
Wayne Reaves has worked alongside independent dealers for years. We are not a licensing service and do not file on your behalf, but this guide lays out the process so you know what is coming.
Virginia's licensing threshold depends on the number of vehicles sold within the statutory period. If you are near that line, confirm your situation directly with the MVDB.
The Shape of the Process
Virginia's education and testing requirements have real lead time, so begin those while you are still evaluating property.
- 01Choose Your License TypeConfirm the correct dealer category and whether the MVDB or DMV administers it.
- 02Pre-Licensing Course & TestComplete the in-person course and pass the DMV dealer-operator test.
- 03Place of BusinessSecure a compliant permanent location with the required office, lot, hours, and telephone.
- 04Business Registration & EINRegister the entity where required and obtain a federal EIN.
- 05Garage Liability InsuranceMaintain qualifying coverage associated with dealer plates.
- 06Surety BondFile the required qualifying bond before an original license is issued.
- 07Application, Fees & Recovery FundSubmit the Board application, applicable fees, and Recovery Fund payment.
- 08Inspection & IssuancePass the Board's business-location inspection before the license is issued.
Why we do not list dollar amounts here: Bond, application, plate, course, and Recovery Fund amounts can change. Use the current MVDB application materials and verify insurance or bond requirements with licensed providers.
Choosing Your License Type
Virginia distinguishes among franchise dealers, independent used vehicle dealers, and separate categories for motorcycles, trailers, travel trailers, motorhomes, and watercraft.
Not every category is administered by the same agency, and bond requirements can differ.
Confirm which agency regulates your intended license type and what it requires before spending money.
Pre-Licensing Course & Dealer-Operator Test
Virginia requires applicants to complete a pre-licensing training course and pass a knowledge test.
The course is delivered in person over multiple days at locations around the Commonwealth, so it requires scheduling and possibly travel.
After the course, the dealer-operator test is administered by the Virginia DMV at its service centers.
Confirm current approved providers, schedules, locations, and fees with the MVDB before registering.
Your Place of Business
Virginia's established-place-of-business standards cover local zoning, a permanent enclosed structure, minimum office space, minimum weekly open hours posted at the main entrance, adequate lot capacity, and a telecommunications line with a publicly listed number.
Local zoning is separate from state licensing and is handled by the city or county.
Confirm current office dimensions, lot capacity, and business-hour requirements before signing a lease. These are items the inspector will verify.
Business Registration & EIN
LLCs and corporations register with the Virginia State Corporation Commission. Obtain the required federal EIN free directly from the IRS.
Which business structure is right for you is a question for an attorney or CPA. It affects taxes, liability, and how the business name appears on the bond and application.
The single most common delay: name mismatches.
The bond, insurance certificate, State Corporation Commission registration, and application must match exactly.
Garage Liability Insurance
Virginia dealers must carry garage liability coverage associated with dealer plates. The coverage protects against bodily injury and property damage claims arising from dealership operations.
Tell your agent the policy is for a Virginia dealer license and dealer plates, and confirm current coverage and limit requirements with the MVDB.
Surety Bond
Before the Board issues an original license, the applicant must file the required bond. Virginia requires the bond to come from a corporate surety licensed in the Commonwealth and approved as required.
Keep the bond continuously in force.
Virginia law allows suspension during periods when a sufficient bond is not on file. Treat any cancellation notice as urgent.
Virginia's bond requirement is tied to the Motor Vehicle Transaction Recovery Fund and may apply differently as a dealer's licensing history develops. Confirm how the current rules apply to you.
Confirm the current amount, correct form, and surety eligibility with the MVDB or a licensed surety agent before purchasing.
Choosing a provider
Wayne Reaves does not sell bonds or insurance, does not recommend a particular provider, and receives nothing if you choose one company over another. Compare quotes and confirm that the surety qualifies in Virginia.
Application, Fees & the Recovery Fund
Application forms are available from the MVDB. Fees can include the base application fee as well as amounts for background checks, endorsements, salesperson licenses, and dealer plates depending on the situation.
Newer dealers also pay into the Motor Vehicle Transaction Recovery Fund. This is separate from the bond premium and should be included in startup planning.
Confirm the complete current fee schedule with the Board before submitting payment.
Inspection & Issuance
After the Board reviews the application, it contacts the applicant to schedule an inspection of the business location.
Do not submit until the location is genuinely ready.
Signage should be installed, hours posted, the phone working and publicly listed, the office furnished, and the lot able to hold the required number of vehicles.
The license is issued after the location is verified as meeting the requirements.
Renewal
Virginia dealer licenses run on a defined renewal cycle and must be renewed before expiration.
Late renewal carries higher fees, and allowing the license to lapse beyond the permitted window may require a new application rather than a routine renewal.
Confirm your renewal date and current requirements with the Board when the license is issued and calendar them.
Federal Obligations Start on Day One
State licensing is not the whole picture. Federal rules apply when you begin selling, including the FTC's Used Car Rule requiring a Buyers Guide on used vehicles offered for sale. Other federal rules apply to advertising, financing, and recordkeeping.
Ask your attorney or state association what applies to your operation.
How Wayne Reaves Fits In
We want to be straightforward about what we do and do not do.
What we do not do
- File applications
- Form business entities
- Sell bonds or insurance
- Provide legal or tax advice
- Interpret state requirements on your behalf
Those questions belong with the MVDB, your attorney, your CPA, and licensed agents.
We also do not receive compensation or referral fees from bond or insurance providers and do not recommend specific ones.
What we do
We build dealer management software and dealer websites for independent dealers.
- Inventory
- Deal tracking
- Customer records
- Reporting
- Compliance tools
- Dealer websites that put inventory in front of buyers
Where to Get Answers
Disclaimer
This guide is provided for general informational purposes only and is intended as a high-level overview of the dealer licensing process. It is not intended to be comprehensive and should not be relied upon as legal, tax, financial, insurance, regulatory, or licensing advice. Laws, regulations, agency procedures, forms, fees, bond and insurance requirements, deadlines, and other licensing requirements may change at any time and may vary based on license type, business structure, location, or individual circumstances.
Wayne Reaves Computer Systems Inc. does not represent or warrant that the information contained in this guide is complete, current, or applicable to every situation. Before making financial commitments, signing a lease, purchasing insurance or a bond, submitting an application, or otherwise acting in reliance on this information, verify all current requirements directly with the appropriate state and local licensing authorities and consult qualified legal, tax, insurance, or other professional advisors as appropriate.
Use of this guide does not create an attorney-client, advisory, fiduciary, or other professional relationship with Wayne Reaves Computer Systems Inc.