Getting a used car dealer license in Virginia

In Virginia, used-car dealers are licensed by Virginia Motor Vehicle Dealer Board.

Before your first retail sale you’ll need a $50,000 surety bond, a pre-licensing course and a business location that meets the state’s rules. The state also inspects the location.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

License
Independent Car/Truck Dealer mvdb.virginia.gov (source, opens in a new tab)
Issued by
Virginia Motor Vehicle Dealer Board mvdb.virginia.gov (source, opens in a new tab)
Surety bond
Initial applicants: $50,000 for first three consecutive years plus recovery-fund fees. mvdb.virginia.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
Two-day VIADA Independent Dealer-Operator course. mvdb.virginia.gov (source, opens in a new tab)
Exam
Dealer-operator qualification exam at DMV Customer Service Center; combined salesperson option for new operators. mvdb.virginia.gov (source, opens in a new tab)
Official fees
$270 dealer, $50 endorsement, $350 annual initial recovery fund, $60 first two plates, $26 additional plate, $50 salesperson; qualification exam $50. mvdb.virginia.gov (source, opens in a new tab)
Renewal
One/two-year options shown in packet; independent operator recertification every24months. mvdb.virginia.gov (source, opens in a new tab)
Site inspection
Yes: MVDB field representative opening inspection after document review. mvdb.virginia.gov (source, opens in a new tab)

Step by step

  1. Make sure you need an independent dealer license

    Virginia's Motor Vehicle Dealer Board licenses used-car lots as Independent Car/Truck Dealers. Franchise dealers, dealer-operator qualification and salesperson licenses are separate credentials. mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab)

  2. Qualify a dealer-operator

    Your dealership needs a qualified independent dealer-operator: someone who takes the two-day VIADA Independent Dealer-Operator course and passes the dealer-operator qualification exam ($50) at a DMV Customer Service Center, registered on form MVDB57. Tick the right test box on that form; new operators can take a combined salesperson option. mvdb.virginia.gov › independent-dealer-operators (source, opens in a new tab) mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab)

  3. Set up the business and the location

    Register the entity or DBA. You need contiguous display space for at least ten vehicles, an office of at least 250 sq ft with utilities, internet and a phone, posted hours and your records kept on site, and a permanent sign. mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab) mvdb.virginia.gov › MVDB-15.pdf (source, opens in a new tab)

  4. Get the zoning certificate at the right time

    Local zoning signs form MVDB19, and it must be dated within 30 days before you submit. A stale certificate is one of the most common problems, so time it with the rest of the packet. mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab) mvdb.virginia.gov › independent-dealer-operators (source, opens in a new tab)

  5. Get the bond

    New dealers need a $50,000 bond for their first three consecutive years, plus recovery-fund fees. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. mvdb.virginia.gov › dealer-fee-calculator (source, opens in a new tab) mvdb.virginia.gov › Dealers-MVDB-10.pdf (source, opens in a new tab)

  6. Put the application together

    File form MVDB10 with criminal history checks (MVDB61) for each owner, operator and salesperson, the dealer-plate application (MVDB9) with plate insurance, and your buyer's order template, which the Board must approve. Make sure every name matches your SCC registration exactly. mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab) mvdb.virginia.gov › independent-dealer-operators (source, opens in a new tab)

  7. Pay the fees

    $270 for the dealer license, a $50 endorsement, $350 for the initial annual recovery fund, $60 for the first two plates ($26 for each additional one) and $50 per salesperson. mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab) mvdb.virginia.gov › MVDB-15.pdf (source, opens in a new tab)

  8. Pass the opening inspection

    After the documents are reviewed, a Board field representative inspects the dealership; then you receive your license materials. mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab)

  9. Keep it current

    The packet offers one- or two-year license terms, and the independent dealer-operator recertifies every 24 months. mvdb.virginia.gov › MVDB-15.pdf (source, opens in a new tab) mvdb.virginia.gov › independent-dealer-operators (source, opens in a new tab)

The location

Display lot
Contiguous display for at least ten vehicles. mvdb.virginia.gov (source, opens in a new tab)
Office
At least 250 sq ft sales/service/office, utilities/internet/phone, posted hours and on-site records. mvdb.virginia.gov (source, opens in a new tab)
Zoning and home-based lots
MVDB19 local zoning certificate within 30 days before submission. mvdb.virginia.gov (source, opens in a new tab)

Before you apply

Entity/DBA registration; MVDB61 criminal-history checks per owner/operator/salesperson; plate insurance. mvdb.virginia.gov (source, opens in a new tab)

Forms

MVDB10 dealer application; MVDB19 zoning; MVDB61 salesperson/background; MVDB57 exam; MVDB9 plates; buyer-order template. mvdb.virginia.gov (source, opens in a new tab)

Get the current versions from mvdb.virginia.gov; we don’t host copies.

Not the license you’re after?

Franchise authority, dealer-operator qualification and salesperson license are separate credentials. mvdb.virginia.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: qualifying operator and submitting zoning certificate within its 30-day window.

Easy mistakes:

Questions

How much does a Virginia dealer license cost?

The Board's fees start at $270 for the license, a $50 endorsement and $350 for the recovery fund, plus $60 for the first two plates and the $50 operator exam. The premium on the $50,000 bond, the course and the location are on top of that. mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab) mvdb.virginia.gov › MVDB-15.pdf (source, opens in a new tab)

Is there a test?

Yes. The dealer-operator takes a qualification exam at a DMV Customer Service Center after the two-day course. mvdb.virginia.gov › independent-dealer-operators (source, opens in a new tab)

How many cars must the lot hold?

At least ten, in contiguous display space. mvdb.virginia.gov › dealer-fee-calculator (source, opens in a new tab)

When should I get the zoning certificate?

Within the 30 days before you submit the application; an older one isn't accepted. mvdb.virginia.gov › how-to-be-a-dealer (source, opens in a new tab) mvdb.virginia.gov › independent-dealer-operators (source, opens in a new tab)

Sources

Not affiliated with the Virginia DMV. Not legal advice. Requirements change; always confirm with the state.