Getting a used car dealer license in West Virginia

In West Virginia, used-car dealers are licensed by West Virginia DMV Dealer Services.

Before your first retail sale you’ll need a $25,000 surety bond 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 · details re-checked against official sources

At a glance

License
Used motor vehicle dealer dmv.wv.gov (source, opens in a new tab)
Issued by
West Virginia DMV Dealer Services dmv.wv.gov (source, opens in a new tab)
Surety bond
$25,000. code.wvlegislature.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.
Official fees
$250 initial application including prescribed plate entitlement, plus $150 recovery fund. Used-dealer additional plates follow sales formula/$5 statutory fee. dmv.wv.gov (source, opens in a new tab)
Renewal
Annual July1–June30; $100 license/one plate + $150 recovery fund. Renewal form due before June1. dmv.wv.gov (source, opens in a new tab)
Site inspection
Yes: Dealer Services pre-inspection; inspector provides application packet. Later owner fingerprint visit described. dmv.wv.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    West Virginia's DMV Dealer Services licenses used motor vehicle dealers. New and franchise dealers, wreckers and dismantlers, financial institutions and license services are separate. dmv.wv.gov › motor-vehicle-dealer-resource-page (source, opens in a new tab)

  2. Ask for the requirements handout

    Start by calling Dealer Services at 304-926-0705 for the minimum-requirements handout. dmv.wv.gov › motor-vehicle-dealer-resource-page (source, opens in a new tab)

  3. Set up the location

    You need a permanent location you own or lease and actually occupy, easy for the public to reach, with space and facilities to service and repair at least one vehicle and to keep your records. It must meet state law and local ordinances. Put up a permanent sign stating the business, visible from the nearest main road, with letters at least 4 inches tall. code.wvlegislature.gov › 17a-6-1 (source, opens in a new tab) dmv.wv.gov › dealers-licensing (source, opens in a new tab)

  4. Pre-inspection and the packet

    Dealer Services inspects the site first, and the inspector gives you the application packet; you can't file the initial forms before then. dmv.wv.gov › motor-vehicle-dealer-resource-page (source, opens in a new tab) webapps.transportation.wv.gov › DMV-126-E-DS_Dealer-Renewal-Application-wf.pdf (source, opens in a new tab)

  5. Apply with bond, insurance and tax evidence

    Submit the application with the $25,000 bond, liability insurance of $20,000/$40,000/$10,000, a state business license and a personal-property tax clearance for each owner or officer. The fee is $250, including your plate entitlement, plus $150 for the recovery fund. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. dmv.wv.gov › motor-vehicle-dealer-resource-page (source, opens in a new tab) code.wvlegislature.gov › 17a-6-4 (source, opens in a new tab)

  6. Fingerprints and clearances

    Owners are fingerprinted, and the agency runs criminal, unemployment and tax checks before approval. dmv.wv.gov › motor-vehicle-dealer-resource-page (source, opens in a new tab) code.wvlegislature.gov › 17a-6-4 (source, opens in a new tab)

  7. Keep it current

    Licenses run July 1 to June 30. Renewal is $100 for the license and one plate plus $150 for the recovery fund, and the form is due before June 1. dmv.wv.gov › motor-vehicle-dealer-resource-page (source, opens in a new tab) webapps.transportation.wv.gov › DMV-126-E-DS_Dealer-Renewal-Application-wf.pdf (source, opens in a new tab)

The location

Office
A permanent location you own or lease and actually occupy (not a temporary stand), easy for the public to reach, with space and facilities to service and repair at least one vehicle, adequate facilities to keep business records, and open to inspection by the commissioner at all reasonable times. code.wvlegislature.gov (source, opens in a new tab)
Sign
At least one permanent sign, clearly visible from the nearest main public street or highway, stating the business conducted there, with letters at least 4 inches tall. Include photos of the dealership and sign with the application. code.wvlegislature.gov (source, opens in a new tab)
Zoning and home-based lots
The location must conform to state law and to the ordinances of its municipality, if any. code.wvlegislature.gov (source, opens in a new tab)

Before you apply

State business license, personal-property tax clearance each owner/officer, fingerprints/release and criminal/unemployment/tax checks. Statutory liability $20,000/$40,000/$10,000. dmv.wv.gov (source, opens in a new tab)

Forms

Initial packet provided at pre-inspection, not fully public. DMV126E-DS renewal. dmv.wv.gov (source, opens in a new tab)

Get the current versions from dmv.wv.gov; we don’t host copies.

Not the license you’re after?

New/franchise, wrecker/dismantler, financial-institution and license-service categories differ. dmv.wv.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: obtaining pre-inspection packet and individual tax/background clearances.

Easy mistakes:

Questions

How much does a West Virginia dealer license cost?

$250 for the initial application, including your plate entitlement, plus $150 for the recovery fund. The bond premium and insurance cost more. dmv.wv.gov › motor-vehicle-dealer-resource-page (source, opens in a new tab) code.wvlegislature.gov › 17A-6-10 (source, opens in a new tab)

Do I need a repair area?

Yes. The location needs space and facilities to service and repair at least one vehicle. code.wvlegislature.gov › 17a-6-1 (source, opens in a new tab)

Can I file the application first and be inspected later?

No. The pre-inspection comes first, and the inspector gives you the application packet. dmv.wv.gov › motor-vehicle-dealer-resource-page (source, opens in a new tab)

Sources

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