How to Become a Dealer
Detailed steps on how to become a motor vehicle dealer in the Commonwealth of Virginia.
- Dealers
- Codes and Regulations
- How to Become a Virginia Motor Vehicle Dealer
- New Dealer Packet
- Types of Dealers
- Dealer Renewal Process
- Submitting Changes to the Board
- Non-Virginia Motor Vehicle Dealers
- Truth In Lending / Truth In Leasing
- Advertising
- Dealer Email Compliance Form
- Search Active Dealers
- Checklist for How to Become a Dealer
Becoming a Dealer in Virginia
Thank you for your interest in becoming a motor vehicle dealer in the Commonwealth of Virginia. Complete the below steps to obtain a motor vehicle dealer license and become part of a great community!
Are you an LLC or Corporation?
Register with the State Corporation Commission
If you are an LLC or a Corporation, register with the State Corporation Commission (SCC) by clicking the link.
What type of motor vehicles do you want to sell?
Dealer Type
Franchise Dealers
— A dealer in new motor vehicles that has a franchise agreement with a manufacturer or distributor of new vehicles, trailers, or semitrailers to sell new motor vehicles or to sell used motor vehicles under the trademark or distributor regardless of the age of the motor vehicles, trailers, or semitrailers (§46.2-1500, definitions)
Pursuant to §46.2-1511(A), a franchise dealer needs a qualified franchise Dealer-Operator.
Independent Dealers
— A dealer licensed to sell used motor vehicles, trailers, motorcycles and RV’s (§46.2-1500, definitions)
Pursuant to §46.2-1511(B), an independent dealer needs a qualified independent Dealer-Operator.
Zoning
The MVDB-19 zoning form, an integral part of your application, must be signed and dated by your local zoning official no more than 30 days before submission. Additionally, the location of your dealership must satisfy all requirements of § 46.2-1510.
Where do you want to sell?
Salespersons
Under §46.2-1537, vehicles must be sold by a licensed salesperson. A dealer-operator receives a salesperson license as part of their certification, provided they check the correct box on the MVDB-57. If anyone else at your dealership will be selling vehicles, they must obtain a salesperson license. Click here for more information.
Who is going to sell?
Surety Bond
Under §46.2-1527.1(D), you’re required to secure a $50,000 surety bond from a corporate surety licensed to do business in the Commonwealth and approved by the Attorney General.
For a list of surety companies licensed in Virginia, click here, select the “Company” as the search type, on the new screen select “Surety” as the “Line of Authority”, and click search.
Do you have a surety bond?
Ready to get started?
Complete and Submit Forms
Read the dealer applicant letter, complete all forms fully, and submit all required original documents to the MVDB. Additionally, submit any documents related to the change of your “trading as” or “fictitious name”
| Document Name | Description |
|---|---|
| MVDB 2 | Bond Application (dated within 30 days of submission). If you filed with the SCC, the company and dealership name MUST match what’s on file with the SCC. |
| MVDB 9 | Application for Dealer Plates with a copy of your liability insurance showing the number of plates insured. |
| MVDB 10 | License application; If you filed with the SCC, the company and dealership name MUST match what’s on file with the SCC; Franchise dealers must attach a copy of the franchise agreement or original franchise letter, which includes the manufacturer or distributor’s service agreement. The manufacturer or distributor must also be licensed by the DMV. |
| MVDB 19 | Certification of Zoning Compliance (dated within 30 days of submission). |
| MVDB 61 | Salesperson application and criminal history check. |
| Buyers Order Template | Under §46.2-1530, a buyers order is required for every motor vehicle sale. As part of your dealer application, you must create a buyer’s order and submit it for approval – see our buyers order checklist. |
| Required Fees | |
|---|---|
| Dealer Certificate | $270.00 |
| Additional License Type Endorsement (each) | $50.00 |
| Motor Vehicle Transaction Recovery Fund Paid Annually For the First 3-years of Operation | $350.00 |
| First 2 Dealer Plates | $60.00 |
| Additional Dealer Plates (each) | $26.00 |
| Salesperson’s License (each) | $50.00 |
Review Process
After you submit the required paperwork, our team will review your application. If everything is correct, we’ll send your licensing materials to your field representative, who will schedule an opening inspection. If you pass, the field representative will give you your licensing materials, and you can start operating as a licensed motor vehicle dealer in Virginia.
Listed below are other important requirements and reminders for you to be aware of:
Location Requirements:
- A dealership sign with no less than 6-inch lettering must be visible on the dealership location.
- Processing fee sign (if applicable) 8 ½ X 11, posted within the dealership location where it can be seen by customers. Click HERE for a simple template.
- A posted listing of all salesperson names in the dealership location where it can be seen by customers.
- Business hours sign posted conspicuously on or near the entrance of the dealership.
- The dealership location must be either owned or leased by the applicant.
- The location cannot be a residence.
- The dealership location must have space to accommodate the display of at least 10 vehicles.
- A certificate of zoning (Form MVDB-19) must be obtained from the locality in which the dealership resides. This certificate must be issued within 30 days of your initial application submission to our office.
- The location must have 250 square feet of permanently enclosed office space for exclusive use by the dealership. The office space must include a desk, chairs, filing cabinet(s), a working telephone in the name of the dealership, working utilities (to include electricity), provisions for space heating, an Internet connection, and an email address.
Operation Requirements:
- Virginia law requires that a dealership must be opened at least 20 hours a week. Ten (10) of those hours must be between the hours of 9:00am and 5:00pm, Monday through Friday.
- Dealership must be open during posted business hours and those hours must be on record with the Board.
- Dealer records must be available for inspection during posted business hours.
- Know and understand Virginia Advertising laws. Advertising laws may be found under Virginia Code § 46.2-1581, Virginia Regulations and advertising guidance documents that may be found on our website HERE.
Want to make life a little easier?
The Motor Vehicle Dealer Board Recommends
- In order to issue 30-day temporary tags (PoD), you must have an agreement with one of the following vendors. Click HERE to link to the DMV and the PoD vendors directly.
- Become an On-Line Dealer and perform many of your DMV-related dealer transactions from your office. Visit http://www.dmv.state.va.us/webdoc/pdf/dmv25.pdf for more information.