Virginia Car Dealer Bonds
Licensed Motor Vehicle Dealers are required to carry a $50,000 bond in order to conduct business in Virginia. By working with various A-rated and better insurance carriers, Jet is able to deliver competitive pricing. Click the “Let’s Roll” button below to fill out your application and get a same-day quote. Once the bond is purchased, the original bond will be sent to you to file with your inspector.
Cost of the Auto Dealer Bond in Virginia?
Surety bonds for dealers in Virginia are priced as low as $32 monthly or $400 yearly. These prices are based on multiple factors, the main one being the owner’s personal credit.
|Price Tier*||$50, 000 Car
|Monthly | Annual|
|Preferred||$32 | $400|
|Standard||$83 | $1000|
|Credit Repair||$166 | $1875|
*Virginia dealer bonds are based on many factors. The above table reflects the lowest rates Jet offers for either the monthly fee or one-year term. These prices are not guaranteed and are subject to change at any time.
Can the Application Be Done Online?
The application for the motor vehicle dealer bond can be completed in one minute. Click the apply now button below to fill out the application. A quote will be prepared and delivered to you shortly after submission.
|Virginia Surety Bond Application|
|$50,000 Car Dealer Bond|
Reason For a Motor Vehicle Bond.
The Virginia Motor Vehicle Board mandates that car dealers have a surety bond. This bond acts as an agreement that a consumer in Virginia will be compensated in the event that a dealer breaches the terms from their license. These terms are that the dealer will not engage in fraud, carry out fraudulent representation, or neglect to follow the conduct expected of car dealers by Virginia law.
What Are the Motor Vehicle Dealer Bond Requirements in Virginia?
A licensed car dealer is legally obligated to provide proof that financial restitution can be made if a customer files a claim. This proof is in the form of a motor vehicle dealer bond. In Virginia, the bond limit for a new auto dealer is $50,000. The bond is required for three consecutive years, but the bond length is indefinite until canceled by the surety company.
Along with the $50,000 bond, an annual fee of $350 into the Motor Vehicle Transaction Recovery Fund is required for the first three years.
Motor Vehicle Transaction Recovery Fund.
As a licensed dealer in Virginia, an annual fee is required into the Motor Vehicle Transaction Recovery Fund. The purpose of this Fund is to further protect the public from financial damage caused by a car dealer. This Fund is used as a supplementary form of payment after the surety bond has been used up by previous claims.
As previously stated, a new dealer applicant must pay a $350 fee annually for the first three years of licensure. If there was any claim on the bond or the Fund during those three years, the fee lowers to $100 per year after the third year. However, if during those three years, no claims on the bond or Fund were filed, payment into the Fund is no longer required.
During the renewal period, a dealer may choose to not participate in the Fund, only if they have not had any claims filed towards the bond or the Fund during their previous three years of licensing. If the dealer chooses to forego the Fund, the bond limit increases to $100,000 to extend coverage to the consumer.
Virginia Vehicle Facts.
Motorists in Virginia can only operate a vehicle if they are wearing shoes.
Police cannot use speed radar detectors.
Virginian drivers must honk their horns if they are attempting to pass another vehicle.