No matter what the situation or circumstance, closing your business should be done so you do not leave loose ends behind.
What to do if you go out of business
The Dealer Manual is provided primarily as a reference guide for Motor Vehicle Dealer Board (MVDB) dealer transactions conducted in the State of Virginia. One of the more commonly missed items by our dealer community is what to do when you go out of business.
Below you will find a basic outline of these steps taken directly from your Dealer Manual.
1.4.1 Canceling Your Dealer's License.
When you cease operation as a motor vehicle dealer in Virginia, you should complete all pending title and registration work. You must surrender to MVDB the following:
- Your Dealer License Certificate;
All dealer license plates which have been issued to your dealership;
- All current salespersons licenses of all salespersons that you employed;
- All temporary license plates left in stock;
- All VSA 27 forms, “Receipt for Money Paid for Transfer of License Plates” (commonly called a temporary registration receipt) remaining in stock;
- If you are an “on-line” dealer: contact your vendor or DMV about surrendering metal plates and decals. The MVDB cannot collect these two items from you.
The former licensee shall continue to maintain and make available to DMV dealer records required by the Dealer Licensing Act.
1.4.2 Inspection by an MVDB Field Representative
When MVDB receives notice that you are going out of business, a MVDB representative will come to your place of business to conduct an inspection and insure compliance with DMV/MVDB regulations. After the inspection, the representatives will complete and file with MVDB Headquarters the form MVDB 25, “Record of Inspection for Cancellation”.
1.4.3 Credit Given on Exchange of Plate
At the time you go out of business, you can receive credit on a prorated time basis for any dealer plates which you can exchange for private plates, provided the private plates will be issued in the same name that the dealer plates were issued in. This rule applies both to corporations and to individual owners. Exchange of dealer plates for private plates must be on a one-for-one basis. In order to exchange your dealer plates, you must:
- Return old dealer plates and registration cards
- Complete form VSA 14, “VEHICLE REGISTRATION APPLICATION” (for private plates and registration)
- Pay appropriate fees and SUT
1.4.4 No Refund given on the exchange of plates
1.4.5 Re-Establishing Your Dealership
If you decide to re-establish your dealership, you must apply for an original Dealer License Certificate as if you were a newly organized dealership.
1.4.6 Online Dealer Participants
If you are an Online Dealer participant, you will need to notify your vendor and DMV’s Dealer Services by letter that you are going out of business. The letter to DMV may be emailed to firstname.lastname@example.org. DMV’s Dealer Services will verify with your online vendor so that a closing report can be completed. Also, the dealership should contact their online dealer vendor with the closing date.