Who requires it
Virginia Motor Vehicle Dealer Board
License & permit · Virginia
Virginia Motor Vehicle Dealer Bond
Virginia motor vehicle dealers bond with the Motor Vehicle Dealer Board on two statutory tracks. Original license applicants file a $50,000 surety while participating in the Motor Vehicle Transaction Recovery Fund—generally for three consecutive years. Qualifying claim-free renewal applicants may later stay on the Fund without that bond, or elect a separate $100,000 bond under § 46.2-1527.9 that stays in force and leave the Fund.
Common bond amount
$50,000 original / $100,000 continuous option
§ 46.2-1527.2 Fund path vs § 46.2-1527.9 Fund-exit election—dealer license face, not a per-location schedule.
How you file
File Form MVDB 2 with the Motor Vehicle Dealer Board
Renewal
After three claim-free years: Fund without $50,000 bond, or elect $100,000 continuous and leave the Fund
Who requires it
Persons seeking an original motor vehicle dealer license must file the $50,000 bond under § 46.2-1527.2. Renewing dealers who have not been the subject of a claim against that bond or against the Fund for three consecutive years may either continue Fund participation without holding the $50,000 bond or elect the $100,000 path that stays in force and stop Fund participation. Manufactured-home dealers and certain nonprofit certificates listed in § 46.2-1527.1(G), and some recreational vehicle, trailer, or motorcycle dealers licensed before July 1, 2015, follow statutory exceptions—confirm your dealer type with the Board.
How much is required
Two amounts apply, both tied to the dealer license rather than a per-location multiplier. § 46.2-1527.2 sets $50,000 for the original-license / Fund path, and § 46.2-1527.1(D) generally keeps that bond in place for three consecutive years while elevated Fund fees apply. After three consecutive claim-free years, a renewing licensee on the Fund path may discontinue the $50,000 bond and pay the lower annual Fund fee—that exit is conditional, not automatic for every dealer. Separately, § 46.2-1527.9 lets a renewing applicant with that same three-year claim-free history elect a $100,000 bond that stays in force instead of Fund participation. On that path, claims cannot exceed $20,000 for one person on a single transaction or $100,000 total. A renewing dealer that belongs to a qualifying 26 U.S.C. § 501(c)(6) nonprofit may satisfy that requirement with that organization’s $1,000,000 blanket or umbrella bond under the limits § 46.2-1527.9 sets.
How to get and file it
Work with a surety company licensed in Virginia and approved by the Attorney General. For an original license, size the bond at $50,000. For a qualifying election that stays in force, size it at $100,000 (or confirm association blanket/umbrella coverage if that alternative applies). Complete Form MVDB 2 in the exact dealer name that matches any SCC registration—dated within thirty days of submission for original filings—and file the original with the Motor Vehicle Dealer Board. File the original-license bond with the Board before the license issues and keep sufficient coverage on file while the three-year Fund bonding period applies. At renewal after three consecutive claim-free years, choose with Board staff whether to remain in the Fund without the $50,000 bond or to elect continuous bonding, leave the Fund, and maintain the $100,000 surety. The Board may suspend a license without a hearing if required bond coverage lapses. Sureties must give the Board thirty days’ notice before canceling as to future liability.
Cost note
The $50,000 and $100,000 figures are required bond amounts, not premiums, and they are separate from any Transaction Recovery Fund fees that apply on the Fund path. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Original / Fund path
- $50,000 bond for original dealer license; generally three consecutive years under § 46.2-1527.1(D)
- Claim-free Fund renewal
- Renewing licensees with no claim against the § 46.2-1527.2 bond or Fund for three consecutive years may discontinue the $50,000 bond and pay the $100 Fund fee—not an automatic exit for every dealer
- Continuous / Fund-exit path
- $100,000 continuous bond under § 46.2-1527.9 for qualifying renewals; no Fund participation or Fund fees while elected
- Continuous-path claim limits
- $20,000 per claimant / single transaction; $100,000 total
- Form / scope
- MVDB 2; requirement attaches to the dealer license, not a per-lot multiplier on one certificate
Official sources
Frequently asked questions
Do all dealers stop bonding after three years?
No. On the ordinary Fund path, only renewing licensees who have not been the subject of a claim against their § 46.2-1527.2 bond or against the Fund for three consecutive years may discontinue the $50,000 bond and pay the lower Fund fee. Dealers with claims stay on bonding as the Board requires. Separately, a claim-free renewer may elect the $100,000 continuous bond and leave the Fund entirely under § 46.2-1527.9.
What is the $100,000 continuous bond?
It is a renewal election under § 46.2-1527.9 for dealers with three consecutive claim-free years. You continuously maintain a $100,000 surety instead of participating in the Motor Vehicle Transaction Recovery Fund, and you do not pay Fund fees while on that path. Surety liability is limited to $20,000 for one claimant on a single transaction and $100,000 overall.
Is the bond amount multiplied for each sales lot?
The statutes set the amount for the dealer license applicant—$50,000 original or $100,000 that stays in force—not a per-location schedule on one license. A second principal place of business that needs its own dealer license is a separate Board filing; confirm with MVDB how that location is licensed.
Is this the same as the DPOR contractor bond?
No. The contractor financial-responsibility bond is a Board for Contractors instrument. The dealer bond is filed with the Motor Vehicle Dealer Board under Title 46.2.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Virginia application
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Last verified 2026-08-10. This guide is based on verified educational content and official sources.
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