Skip to content
All state guides Virginia dealer license

How to get a used car dealer license in Virginia

You apply to the Virginia Motor Vehicle Dealer Board for an independent dealer license, and the dealership needs a certified dealer-operator who has passed the two-day course and the exam. New dealers post a $50,000 bond and pay a $350 recovery fund fee each year for the first three years.

  • Sourced to MVDB
  • Checked October 2026
  • Free
License
Independent motor vehicle dealer license (dealer certificate)
Surety bond
$50,000 for the first 3 years
State fee
$270 plus $350 Fund fee
Pre-license course
2-day course plus exam
Background check
Criminal background check
License term
12 months, renewed annually
What the state asks for

Virginia dealer license requirements

The figures a first-time used car dealer needs before applying to MVDB. Each row shows how well it is supported.

Surety bond
$50,000 for the first 3 yearsOfficial source

Required for your first three consecutive years. After three years with no claim against the bond or the Fund, you can drop the bond and pay a $100 annual Fund fee, or choose continuous bonding instead.

State license fee
$270 plus $350 Fund feeOfficial source

The dealer certificate is $270 a year. Your first filing also carries the $350 Transaction Recovery Fund fee, $60 for the first two dealer plates and $50 for each salesperson license.

Pre-license education
2-day course plus examOfficial source

Your dealer-operator takes the two-day Independent Dealer-Operator course taught by VIADA, then passes the qualification exam at a DMV Customer Service Center ($50 test fee). VIADA lists course registration at $485.

Background check
Criminal background checkOfficial source

A criminal background check, no more than 30 days old, goes in on Form MVDB 61 for each owner, partner and first salesperson. The Board's checklist does not list fingerprinting.

Insurance
Liability insurance on dealer platesOfficial source

You file proof of liability insurance with the dealer plate application (Form MVDB 9). It must show how many plates are insured, or state that all plates are insured. Confirm coverage limits with MVDB.

Business location
250 sq ft office, 10-vehicle displayOfficial source

At least 250 square feet used only by the dealership in a permanent enclosed building that is not a residence, plus adjoining space reserved for you that can display at least 10 vehicles.

License term and renewal
12 months, renewed annuallyOfficial source

Licenses run 12 consecutive months and expire on the last day of a month. MVDB mails renewal forms about 30 days before expiration. A renewal filed up to 30 days late costs 150 percent of the fee.

Sales allowed without a license
4 in 12 monthsOfficial source

Anyone who sells, offers or displays five or more vehicles within 12 consecutive months is presumed to be a dealer. Buying vehicles to resell them can make you a dealer at a lower count.

Processing time
Not publishedConfirm with the agency

MVDB does not publish a review time. After it approves the paperwork, a field representative schedules the opening inspection, which the Board places within 60 days of license approval.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Virginia Motor Vehicle Dealer Board

License you apply for

Independent motor vehicle dealer license (dealer certificate)

Official licensing page

The three-year bond clock restarts if coverage lapses

The $50,000 bond and the $350 annual Fund fee apply for three consecutive years. The Board's fee chart says a break in bond coverage means starting the three years over, with a $50 reinstatement fee. After three claim-free years you move to a $100 annual Fund fee with no bond, or you can choose continuous bonding and leave the Fund. Confirm your status with MVDB at renewal.
Step by step

How to get a Virginia dealer license

The order that works for a first application. Tick each step off as you finish it.

Your progress0 of 7 steps
Saved on this device

  1. Qualify your dealer-operator

    Every independent dealership needs a dealer-operator with a certificate of qualification. That person takes the two-day course taught by VIADA, then brings Form MVDB-57, ID and the $50 test fee to a DMV Customer Service Center for the exam. Without an active salesperson license, choose the combined dealer-operator and salesperson exam.

    MVDB-57 · $50 test fee

  2. Register the business

    Register an LLC, corporation or partnership with the State Corporation Commission, along with any trading-as name. The company name on the SCC filing, the bond and the license application must match exactly.

    State Corporation Commission

  3. Secure the location and zoning sign-off

    Find a site that meets Code of Virginia 46.2-1510: 250 square feet of enclosed space used only by the dealership, room to display 10 vehicles, and a furnished office with phone, utilities and internet. Have the local zoning official sign Form MVDB 19 no more than 30 days before you file.

    Form MVDB 19 · 46.2-1510

  4. Get the bond and plate insurance

    Buy the $50,000 surety bond from a surety licensed in Virginia and complete the bond application, Form MVDB 2, dated within 30 days of filing. Buy liability insurance that covers each dealer plate you request. The proof of insurance goes with Form MVDB 9.

    Forms MVDB 2 and MVDB 9

  5. Prepare background checks and sales licenses

    Complete Form MVDB 61 with a criminal background check for each owner, partner and first salesperson. The check cannot be more than 30 days old when you file. The dealer-operator must hold a salesperson license. Draft your buyer's order too, because the Board reviews it with the application.

    Form MVDB 61 · $50 per salesperson

  6. File the application packet with fees

    Send Form MVDB 10 with the bond application, plate application, zoning form, salesperson applications, SCC documents and buyer's order. Fees are $270 for the dealer certificate, $350 for the Transaction Recovery Fund, $60 for the first two dealer plates and $50 for each salesperson license.

    Form MVDB 10 · $270 certificate

  7. Pass the opening inspection

    When the paperwork is approved, the Board sends your licensing materials to a field representative, who schedules an opening inspection of the location. If you pass, the representative hands over the certificate, licenses and dealer plates and you can open.

    MVDB field representative

Practical advice

Start with the dealer-operator. Classes fill up, and nothing else moves until someone has passed the course and the DMV exam. Watch the dates on your paperwork: the zoning form, the bond application and the background checks all need to be within 30 days of filing. Use the identical business name on the SCC filing, the bond and Form MVDB 10.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Virginia dealer location requirements

What the state checks at the business address.

  • At least 250 square feet of sales, service and office space used only by the dealership, in a permanent enclosed building that is not a residence.
  • Adjoining space for your exclusive use that can display at least 10 vehicles.
  • Desk, chairs, filing space, a working phone listed in the dealership name, utilities with heat, an internet connection and an email address.
  • A dealership sign with letters at least 6 inches high, visible from the front of the business office.
  • Open at least 20 hours a week, with at least 10 of them between 9 a.m. and 5 p.m. Monday through Friday. Hours posted at the entrance.
  • Zoning certification on Form MVDB 19, signed by the local zoning official no more than 30 days before you file.
  • The location must be owned or leased by the applicant, and dealer records must be kept there.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Virginia dealer license

Renewal and ongoing duties

Renew every 12 months. MVDB mails the renewal forms about 30 days before expiration. Keep the $50,000 bond and pay the $350 Fund fee for your first three consecutive years. Your dealer-operator must recertify every 24 months by online course or test. Report changes to hours, location or processing fee to the Board, and expect unannounced inspections.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Virginia dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Virginia?

Apply to the Motor Vehicle Dealer Board for an independent dealer license. First, your dealer-operator completes the two-day course and passes the exam at a DMV Customer Service Center. Then you register the business, set up a location that meets Code of Virginia 46.2-1510, get zoning sign-off on Form MVDB 19, buy a $50,000 bond and file Form MVDB 10 with the fees. A field representative inspects the location before you open.

How much is the dealer bond in Virginia?

$50,000 for an original license, kept in force for your first three consecutive years. After three years with no claim against the bond or the Transaction Recovery Fund, you can drop the bond and pay a $100 annual Fund fee, or choose continuous bonding instead of the Fund.

How much does a Virginia dealer license cost?

The dealer certificate is $270 a year. New dealers also pay $350 a year to the Motor Vehicle Transaction Recovery Fund for the first three years, $60 for the first two dealer plates, $26 for each additional plate and $50 for each salesperson license. The dealer-operator exam has a $50 test fee, and VIADA lists the two-day course at $485.

Do I need a pre-licensing course in Virginia?

Yes. The dealer-operator of an independent dealership must complete the two-day Independent Dealer-Operator course, taught by the Virginia Independent Automobile Dealers Association, and then pass the qualification exam at a DMV Customer Service Center. The dealer-operator recertifies every 24 months by online course or test.

Can I get a Virginia dealer license without a car lot?

No. State law requires an established place of business with at least 250 square feet used only by the dealership in a permanent enclosed building, and adjoining space to display at least 10 vehicles. The location cannot be a residence, and it must be open at least 20 hours a week.

How many cars can I sell in Virginia without a dealer license?

Fewer than five in any 12 consecutive months. A person who sells, offers or displays five or more vehicles in that period is presumed to be a motor vehicle dealer. The definition of a dealer also covers anyone who buys vehicles for resale, so the number alone does not protect you if you are flipping cars for profit.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with MVDB or your attorney before you sign a lease or pay a fee.

Spotted something out of date? Tell us

Plan the rest of the launch

Get started

Open your Virginia dealership on one platform

AutoDealer.io runs inventory, deals, F&I, title paperwork and your dealer website, built for independent dealers. Start your free trial.

Start your free trial Talk to us