Dealer Closing
Shuttering your dealership properly avoids loose ends and ensures everything is wrapped up correctly
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01
What to do if you go out of business
Closing a dealership involves several important steps. Below is a simple outline from your Dealer Manual to help ensure nothing is missed.
1.4.1 Canceling Your Dealer's License.
When closing your dealership, you must complete all pending title and registration work. Then, surrender the following to the MVDB:
- Dealer license certificate
- All issued dealer license plates
- All current salesperson licenses
- All unused temporary license plates
- All VS-27 forms (temporary registration receipts) remaining in stock
Online dealers: Contact your vendor or DMV to surrender metal plates and decals, as the MVDB cannot collect these items.
Additionally, former licensees must retain and provide access to required dealer records in compliance with the Dealer Licensing Act
1.4.2 Inspection by an MVDB Field Representative
Once the MVDB is notified of your dealership’s closure, a field representative will visit your business to conduct a closing inspection, ensuring compliance with DMV and MVDB regulations.
After the inspection, the field representative will complete and submit the MVDB-25 (Record of Inspection for Cancellation).
1.4.3 Credit Given on Exchange of Plate
When you go out of business, you may receive prorated credit for dealer plates if you exchange them for private plates. The private plates must be registered under the same name as the dealer plates, whether for an individual or corporation.
Plate exchange must be on a one-for-one basis. To complete the exchange, you must:
- Return old dealer plates and registration cards
- Complete form VSA-14 (Vehicle Registration Application)
- Pay the required fees and Sales & Use Tax (SUT)
1.4.4 No Refund given on the exchange of plates
Only dealer plates exchanged for private plates are eligible for a refund or credit.
1.4.5 Re-Establishing Your Dealership
If you decide to open a dealership again, you must apply for a new Dealer License Certificate. Your previous Dealer License Certificate cannot be reinstated.
1.4.6 Online Dealer Participants
If you are an online dealer participant, you must notify both your vendor and DMV’s Dealer Services in writing that you are going out of business, including your planned closing date.The notification to DMV may be sent via email to dealerservices@dmv.virginia.gov. DMV’s Dealer Services will verify your closure with your vendor so that a closing report can be completed.