A Virginia Motor Vehicle Dealer Bond (MVD) is a type of surety bond that is required by the Virginia Department of Motor Vehicles for motor vehicle dealers in the state of Virginia. The bond guarantees that the motor vehicle dealer will comply with all applicable laws and regulations, and that they will act in good faith when dealing with customers, vendors, and the state of Virginia. The bond also serves as a financial guarantee that the motor vehicle dealer will pay any fines or judgments that may be imposed as a result of any violations of the law. The bond is typically for a period of one year and the amount of the bond is determined by the Virginia DMV. Failure to maintain the bond, or failure to comply with the regulations, can result in the suspension or revocation of the motor vehicle dealer's license.
Virginia Car Dealer Bonds are required by the Commonwealth of Virginia to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $50,000. The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.
$50,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers
$25,000 surety bond for motorcycles, trailers, or T and M vehicle dealer
There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
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Applicants for a renewal of a motor vehicle
dealer's license may elect to obtain and continuously maintain a bond in the
amount of $100,000 in lieu of participation in the Motor Vehicle Transaction
Recovery Fund, provided that such applicants have not been the subject of a
claim against a bond issued pursuant to §
An applicant for a renewal of a motor vehicle
dealer's license who is a member of a nonprofit organization established under
26 U.S.C. § 501(c) (6) that provides on behalf of its membership a blanket or
umbrella bond in the amount of $1 million satisfies the bonding requirements of
this section. When posted, a blanket or umbrella bond shall be considered a
dealer bond for the purposes of §
The Board may, without holding a hearing, suspend the dealer's license during the period that the dealer does not have a sufficient bond on file. Dealers bonded under this article and those salespersons employed by such dealers shall be exempt from the Fund fees specified in §.