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West Virginia Vehicle Dealer Surety Bond

A West Virginia Motor Vehicle Dealer shakes hands with a customer

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West Virginia Vehicle Dealers are required to have a license and a dealer surety bond in order to operate a business. Dealers that are required to have a license include new/franchise and used motor vehicle dealers (includes car dealers and auto dealers), recreational vehicle dealers, trailer dealers, motorcycle dealers, and auto auction dealers. The surety bond guarantees compliance of state laws and ethical and honest performance of duties.

Surety Bond and License Requirements:

  1. Applicants must first schedule an appointment for a pre-inspection of the dealership with the West Virginia Division of Motor Vehicles. Upon approval of the inspection, the dealer will be provided with an application package.
  2. Applicants must complete the license application and pay the applicable license and dealer plate fees.
  3. If not already completed, obtain a business license from the West Virginia Secretary of State.
  4. Dealers will need to obtain minimum liability insurance coverage 20/40/10 and provide proof of coverage with the application.
  5. Obtain a $25,000 surety bond. Submit the original bond with the completed application.
  6. If the dealer has not had any claims after three years, the bond will no longer be required.
  7. Provide a personal property tax receipt for each owner and/or corporate officer. If a property tax receipt is not applicable, provide an affidavit that no taxes are owed approved by the county municipality the dealership will be located in.
  8. Provide a photograph of the dealership signage (the sign must have at least a minimum 4" in height lettering).
  9. Provide a copy of the franchise agreement if applicable.
  10. Upon receipt of the completed application package by the State, an inspector will fingerprint all owners and/or corporate officers and obtain signed waivers from each.
  11. Applicant owners and/or corporate officers will also undergo application approval through other West Virginia State agencies. This will include the Bureau of Employment (check for any delinquent unemployment benefits), the Criminal Justice Bureau (criminal background check), and the Tax Department (to insure that all taxes have been paid to date).
  12. Dealers must make an annual payment of $150 to the West Virginia Vehicle Recovery Fund.

How Much Will a West Virginia Vehicle Dealer Bond Cost?

The premium that you pay for a West Virginia Vehicle Dealer Surety Bond is dependent on credit and experience in the vehicle sales industry. Our rates start at $250 with good credit. Call or email our Surety Bond Agents for a free quote.

Did You Know?

Dealers must renew their licenses by July 1 of each year

Related Links:

West Virginia Vehicle Dealer Licensing Information
West Virigina MV-126-DS-P Surety Bond

More Surety Bond Questions?

Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


For a downloadable application