How to Get a Dealer License in Virginia
In Virginia, dealer licensing runs through the Virginia Motor Vehicle Dealer Board (MVDB). To get a used car dealer license in Virginia you'll need a registered business, a compliant location, a $50,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Virginia auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Virginia Motor Vehicle Dealer Board (MVDB)'s current pages before you file.
- Surety bond
- $50,000
- License term
- One-year term; renew the dealer certificate before expiration. A late renewal up to 30 days past expiration costs $405 ($270 + $135 penalty).
- Sales threshold
- Selling five or more motor vehicles in a 12-month period (or advertising/holding yourself out as a dealer) generally requires a Virginia dealer license — confirm the current threshold in Code of Virginia § 46.2-1500.
- Pre-licensing
- Independent dealer-operators must complete the two-day Dealer-Operator Training Course and then pass the Independent Dealer-Operator Qualification Test (MVDB-57, $50). Every dealership must have a qualified dealer-operator on record; the dealer-operator also receives a salesperson license through the same certification.
License types in Virginia
| License type | What it covers |
|---|---|
| Independent Dealer | Retail and wholesale sales of used motor vehicles, trailers, motorcycles, and RVs — the license most small used-car lots hold. |
| Franchise Dealer | New-vehicle sales under a manufacturer/distributor franchise agreement, plus used vehicles of the same line-make. |
| Wholesale Dealer | Dealer-to-dealer and wholesale-auction sales only — no retail sales to the public. |
| Endorsements (Motorcycle / Trailer / RV / Watercraft Trailer / Manufactured Home) | Added to a dealer certificate per vehicle type sold at the same location; $50 for each additional license type. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Dealer Certificate | $270 | Annual license (MVDB-10); each additional license-type endorsement is $50 |
| Surety bond (face amount) | $50,000 | Annual premium you actually pay is typically ~1–3% of the face amount, based on credit |
| Motor Vehicle Transaction Recovery Fund (MVTRF) | $350/yr | Charged each year for the first three consecutive years to all new dealers |
| Dealer plates | $60 first two / $26 each additional | Per dealer number at the same location (MVDB-9) |
| Salesperson License | $50 | Original, transfer, and renewal (MVDB-61) |
| Dealer-Operator/Salesperson Qualification Test | $50 | Test application fee (MVDB-57) |
| Dealer-Operator training course | $325–$375 (typical) | Two-day pre-license course offered by approved providers such as VIADA — verify current pricing |
Step by step
- Register the business with the State Corporation Commission (if an LLC/corporation) and secure a compliant, non-residential location with zoning approval (MVDB-19).
- Complete the two-day Dealer-Operator Training Course and pass the qualification test (MVDB-57).
- Obtain the $50,000 surety bond (MVDB-2) from an approved corporate surety.
- Assemble the application package (dealer application MVDB-10, dealer plate application MVDB-9, salesperson/dealer-operator MVDB-61, zoning MVDB-19) and submit a buyer's-order template for approval.
- Pay the Dealer Certificate fee ($270), any endorsement fees, and the first-year Transaction Recovery Fund fee ($350) to the MVDB.
- Pass the MVDB field representative's opening inspection, then set up temporary-tag issuance and titling through Virginia DMV.
Premises & temp tags
Location: An established, non-residential place of business: at least ~250 sq ft of enclosed office space (desk, chairs, filing cabinet, phone, utilities, internet), a permanent sign with letters roughly 6 inches high, and room to display at least 10 vehicles. The lot must keep posted hours of at least 20 hours per week, including 10 hours between 9 a.m.–5 p.m. Monday–Friday, and pass an opening inspection by an MVDB field representative.
Temp tags / plates: Dealers issue temporary tags to buyers through Virginia DMV's Print-on-Demand Temporary Tags system, and use MVDB-issued dealer plates ($60 for the first two, $26 each additional) for demonstration and transport of inventory.
Virginia-specific things to know
- Virginia splits dealer oversight: the Motor Vehicle Dealer Board (MVDB) licenses and regulates independent/used dealers, while the Virginia DMV handles vehicle titles, registration, and temporary tags — you deal with two agencies.
- Every dealership must have a certified dealer-operator; you cannot skip the two-day course and qualification test, and losing your dealer-operator can jeopardize the license.
- The $50,000 bond and $350/yr Recovery Fund fee both run for the first three consecutive years — any lapse in bond coverage restarts that three-year period.
- Premises rules are strictly inspected (office size, permanent sign, display capacity, posted hours), so home-based or virtual lots generally do not qualify for a retail dealer certificate.
Official Virginia resources
- MVDB — How to Become a Dealer ↗
- Virginia DMV — Dealer Licensing ↗
- Code of Virginia — Chapter 15, Motor Vehicle Dealers ↗
Virginia dealer license FAQ
How much does a dealer license cost in Virginia?+
Dealer Certificate: $270; Surety bond (face amount): $50,000; Motor Vehicle Transaction Recovery Fund (MVTRF): $350/yr; Dealer plates: $60 first two / $26 each additional; Salesperson License: $50; Dealer-Operator/Salesperson Qualification Test: $50; Dealer-Operator training course: $325–$375 (typical). Plus the $50,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Virginia?+
Virginia requires a $50,000 surety bond. Every applicant for an original dealer license posts a $50,000 surety bond (MVDB-2) from a corporate surety approved by the Attorney General, held for the first three consecutive years; a break in coverage restarts the three-year clock. After three claim-free years a dealer may keep a $100,000 bond in lieu of continued participation in the Motor Vehicle Transaction Recovery Fund — verify current options with the MVDB.
Do you need a physical lot to get a dealer license in Virginia?+
An established, non-residential place of business: at least ~250 sq ft of enclosed office space (desk, chairs, filing cabinet, phone, utilities, internet), a permanent sign with letters roughly 6 inches high, and room to display at least 10 vehicles. The lot must keep posted hours of at least 20 hours per week, including 10 hours between 9 a.m.–5 p.m. Monday–Friday, and pass an opening inspection by an MVDB field representative.
How many cars can you sell in Virginia without a dealer license?+
Selling five or more motor vehicles in a 12-month period (or advertising/holding yourself out as a dealer) generally requires a Virginia dealer license — confirm the current threshold in Code of Virginia § 46.2-1500.
How long is a Virginia dealer license valid?+
One-year term; renew the dealer certificate before expiration. A late renewal up to 30 days past expiration costs $405 ($270 + $135 penalty).
Is dealer training or an exam required in Virginia?+
Independent dealer-operators must complete the two-day Dealer-Operator Training Course and then pass the Independent Dealer-Operator Qualification Test (MVDB-57, $50). Every dealership must have a qualified dealer-operator on record; the dealer-operator also receives a salesperson license through the same certification.
How do temporary tags work for Virginia dealers?+
Dealers issue temporary tags to buyers through Virginia DMV's Print-on-Demand Temporary Tags system, and use MVDB-issued dealer plates ($60 for the first two, $26 each additional) for demonstration and transport of inventory.
Data verified 2026-07-17. Requirements change — confirm with the Virginia Motor Vehicle Dealer Board (MVDB) before filing.
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