To apply, you must:
11 Virginia Dealer License Requirements
Virginia Dealer Licenses are issued by the Motor Vehicle Dealer Board (MVDB). This page covers Virginia's 6 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. Virginia's Dealer application accepts an individual (sole proprietorship), partnership, corporation, or LLC.
An LLC keeps your business separate from your personal life and adds trust to the name. An LLC, corporation, or partnership registers with the State Corporation Commission before applying to the Board, and a trading-as name is filed there too.
Start as the business type you'll keep. Changing from an individual or partnership to a corporation means turning in your Dealer License Certificate and dealer plates and getting new ones. Adding a partner takes only a form MVDB 10 and the pro-rated certificate fee.
Choose your Dealer License Type
Virginia issues 6 Dealer License types, and the Motor Vehicle Dealer License comes in Franchised or Independent form on the same application, MVDB 10. Most people start with the Independent Motor Vehicle Dealer License. Each vehicle type you sell is a separate $50 endorsement on the same certificate.
| License Type | What It Lets You Do |
|---|---|
| Motor Vehicle Dealer LicenseFranchised or Independent; the type most people start with | Buy and sell vehicles as a Virginia Dealer, at the dealer auctions and to the public. A Franchised Dealer sells for a manufacturer or distributor that holds its own DMV license. Cars and trucks, motorcycles, RVs, trailers, ambulances, funeral vehicles, and fire-fighting vehicles each need their own endorsement |
| Motor Vehicle Salesperson License | Sell vehicles for a licensed Virginia Dealer as a W-2 employee; an independent contractor can't hold one. A 20-question test, no course, and a background check |
| Foreign Registrant License | For a Dealer licensed in another state, not in Virginia, to sell at Virginia wholesale auctions. Covers cars and trucks, motorcycles, trailers, and RVs |
| Nonprofit Organization Certificate | Lets a nonprofit consign donated vehicles to a licensed Virginia Dealer, up to 12 donated vehicles in any 12-month period, to low-income persons |
| Watercraft Trailer Dealer Registration | A Certificate of Dealer Registration for a watercraft trailer dealer, not a full Dealer License |
| Manufactured Home Dealer Registration | A Certificate of Dealer Registration for a manufactured home dealer, not a full Dealer License |
Get your Dealer Bond (Surety Bond)
A Virginia Motor Vehicle Dealer License requires a $50,000 bond for your first 3 years, filed with the Motor Vehicle Dealer Board (§46.2-1527.2). The bond protects customers if you break Virginia's dealer laws. A $50,000 Dealer Bond costs only $500 a year at the base rate, after a credit check.
The bond is filed on the Board's form MVDB 2. A $350 Motor Vehicle Transaction Recovery Fund fee is paid to the Board each year alongside it, for the same 3 years.
Dealer 101 Insurance Services
Licensed in Virginia · NPN 22346185
| License Type | You Pay | Bond Amount |
|---|---|---|
| Motor Vehicle Dealer LicenseVirginia - Motor Vehicle Dealer ($50,000). Credit check required | $500/yearabout $42 a month | $50,000 |
Get your Automobile Liability Insurance — for each dealer plate
A Virginia Motor Vehicle Dealer License itself requires no insurance, but each dealer plate does (§46.2-1547). Automobile liability insurance, or a DMV certificate of self-insurance, must be certified for every plate before the Board issues it.
It stays in force for as long as the plate's registration is valid, whether or not the plate is on a vehicle. You certify it on the plate application, MVDB 9, under Dealer Plates below, and your insurance agent sets the price.
Set up your Dealer Office (Established Place of Business)
A Virginia Motor Vehicle Dealer License requires an established place of business, owned or leased by you (§46.2-1510). It must be where a substantial portion of your sales activity is routinely conducted, in “a permanent, enclosed building not used as a residence.”
A home office isn't allowed, and the table below is the statute's own list. The zoning certification is signed by the local zoning official, not you, within the 30 days before the dealership opens. Each license type you apply for needs its own.
| What Virginia Requires | |
|---|---|
| Office | At least 250 square feet of sales, service, and office space, devoted exclusively to the dealership, in a permanent, enclosed building |
| Display space | Contiguous space for your exclusive use, adequate to display at least 10 vehicles |
| Equipment | A desk, chairs, filing space, a working telephone listed in the dealership's name, electricity and space heating, and an internet connection and email address |
| Records | All required dealer records kept on the premises |
| Sign | Permanent and visible from the front of the office, with your trade name in letters at least 6 inches high |
| Hours | Open at least 20 hours a week, with at least 10 of them between 9:00 a.m. and 5:00 p.m., Monday through Friday, posted at the main entrance |
| Zoning | Meets all local zoning regulations, certified on MVDB 19 by the local zoning official |
Take the Independent Dealer-Operator Course — Independent Dealers only
A Virginia Independent Dealer-Operator must complete a 2-day course before taking the qualification test (§46.2-1511(B)). The dealer-operator is the person who holds the dealership's certificate of qualification. Virginia currently requires no course for Franchised Dealer-Operators or salespeople.
The Board sets the curriculum, and every course is registered through the Virginia Independent Automobile Dealers Association (VIADA).
- Register at viada.org/pre-license or call 800-394-1960
- The course runs 2 days, and there is a fee, set by VIADA
Pass the Qualification Test (Dealer-Operator Qualification Test)
A Virginia dealer-operator or salesperson takes the Board's qualification test in person at any DMV Customer Service Center. You apply on form MVDB 57 with a $50 non-refundable fee per attempt; a failed attempt costs another $50.
The state publishes no attempt limit, and passing is not a license: DMV issues a receipt that says exactly that.
- Independent Dealer-Operator: 80 questions, after the 2-day course
- Franchised Dealer-Operator: 80 questions; you must already hold a valid, current Salesperson License
- Combined Dealer-Operator and Salesperson: 100 questions, for someone who holds neither credential yet
- Salesperson: 20 questions, no course
- Independent Dealer-Operator Recertification: 100 questions, due within 24 months of your last qualification
Pass the Background Check (Criminal History Inquiry)
Each owner and partner on a Virginia Dealer License application, and each first-time salesperson, must complete a criminal background check. It comes from one of 4 private vendors the Board authorizes; Virginia takes no fingerprints and runs no state police check.
The vendor issues a background identifier code that goes on form MVDB 61. The completed check can be no more than 30 days old when you submit it.
The 4 authorized vendors, each with its own price:
- Reliantcy
- Screening One
- The Cole Group
- Partnership Screening International Inc.
The dealer application, MVDB 10, also asks whether any owner, partner, officer, or Dealer-Operator has ever been convicted of a felony. It asks the same about fraud or a criminal act in the vehicle business, vehicle larceny or a stolen vehicle, and odometer tampering.
A yes needs an explanation on a separate sheet, with names, dates, courts, and results.
If you have a record
- Denial is discretionary, not automatic. The Board “may” deny for a felony, fraud or a criminal act in the vehicle business, vehicle larceny or a stolen vehicle, or odometer tampering (§46.2-1575). Its own form promises each application “will be reviewed carefully.”
- No waiting period. Virginia sets no number of years; the statute asks only whether a conviction exists. MVDB 61 invites your documentation and proof you've finished probation or parole.
- Unrelated misdemeanors and pending charges don't count. A misdemeanor with no vehicle-business, fraud, larceny, or odometer element isn't a ground, and every ground says “convicted,” not charged.
- Expungement doesn't reach a conviction; sealing does. Virginia expunges only charges that ended without a conviction. Sealing reaches misdemeanors and Class 5 or 6 felonies after 7 or 10 clean years, and a sealed record can't be asked about on a license application (§19.2-392.15).
- You can appeal. A refused applicant gets a hearing on written request within 30 days (§46.2-1514), and the Board's decision can be reviewed in court (§46.2-1577).
Get your Dealer License Plates
Virginia dealer license plates cost $60 a year for the first 2 and $26 a year for each additional plate. You apply on MVDB 9, sent in with the license application, and a partial year is prorated by month.
A first-time applicant is allowed 4 plates per salesperson, with a minimum of 2 plates per plate type. The plates renew on the same 12-month cycle as the license.
Dealer tags let you drive your inventory for business, personal, and family purposes. That covers dealers, dealer-operators, their spouses, and employees (§46.2-1550). A prospective buyer can drive on them for up to 5 days per certificate; a trip to an auction, repair shop, or parts store gets 24 hours.
From your second year, the plate limit follows the previous license year's sales:
- Fewer than 25 vehicles sold: up to 2 plates
- 25 to 49 sold: up to 4 plates
- 50 or more sold: up to 4 times the number of licensed salespeople you employ
Submit your Dealer License Application (MVDB 10)
You apply to the Motor Vehicle Dealer Board on paper. Every Board form is a PDF, mailed or hand-delivered to the Board; there is no online application. The license fee is $270 a year, plus $50 a year for each vehicle-type endorsement, and every fee is itemized under costs.
MVDB 10 asks for one number for the business, your SSN or EIN; the Board's checklist says to include a federal EIN if you have one.
It also lists the name, title, and residential address of every owner, member, partner, and officer. The Board's How to Become a Dealer checklist lists every step and form.
Pass the Opening Inspection (Field Representative)
A Virginia Dealer License location is inspected after the Board approves your application and before anything is issued. Your assigned Field Representative contacts you to schedule the opening inspection once your license items are ready.
On a satisfactory inspection, the Field Representative gives you your certificate, licenses, and dealer plates, and your dealership is open for business. Moving to a new location later requires another successful inspection (§46.2-1515).
Dealer License Cost
A Virginia Motor Vehicle Dealer License costs $270 a year for the Dealer Certificate, plus $50 a year for each vehicle-type endorsement. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Dealer CertificateThe Motor Vehicle Dealer License itself | $270 a year |
| Vehicle-type endorsementCar/truck, motorcycle, RV, trailer, ambulance, funeral vehicle, or fire-fighting vehicle | $50 a year each |
| Recovery Fund fee | $350 a year for the first 3 years$100 a year after 3 claim-free years |
| Dealer Bond | $500 a year, $50,000 bond, credit check required |
| Automobile liability insurance | For each dealer plate, priced by your agent |
| Dealer plates | $60 a year, first 2 plates$26 a year, each additional plate$10 to replace a lost, stolen, or destroyed plate$1 per replacement decal |
| Qualification test | $50 per attempt, non-refundable |
| Independent Dealer-Operator course | Fee set by VIADA |
| Background check | Priced by the Board-approved vendor |
| Salesperson License | $50 for 1 year$100 for 2 years$10 a year Recovery Fund fee, capped at $100 a year per dealership |
| Foreign Registrant License | $100 a year$60 a year Recovery Fund fee |
| Nonprofit Organization Certificate | $25 a year |
| Watercraft Trailer or Manufactured Home Dealer Registration | $75 a year each$60 a year Recovery Fund fee, watercraft trailer dealers only |
| Supplemental locationA permanent or temporary second location | $40 each |
| Reprints | $10 sales license or dealer certificate$2 dealer plate registration |
| ReinstatementAfter a suspension or a lapse in bond coverage | $50 |
| Late renewalReceived within 30 days after expiration, 150% of the fee | $405 Dealer Certificate$75 each endorsement$75 Salesperson License |
Dealer License Renewal
A Virginia Dealer License is valid for 12 months, and your dealer plates renew on the same cycle. Renewal uses the same MVDB 10 form linked under Application, for the $270 Dealer Certificate fee plus $50 per endorsement.
A renewal received or postmarked within 30 days after expiration still counts, at 150% of the fee: $405 for the Dealer Certificate. A renewing Dealer with 3 consecutive claim-free years can also elect a continuous $100,000 bond instead of the Fund and its fees (§46.2-1527.9); a new applicant can't.
Common Questions
Can you get a Virginia Dealer License with a felony?
Yes. A felony isn't an automatic bar to a Virginia Dealer License. The Board may deny for a felony, fraud or a criminal act in the vehicle business, vehicle larceny, a stolen vehicle, or odometer tampering (§46.2-1575). It sets no waiting period; unrelated misdemeanors and pending charges aren't grounds, and MVDB 61 invites your explanation.
Can you get a Dealer License in Virginia without a lot?
No. A Virginia Motor Vehicle Dealer License requires an established place of business of at least 250 square feet, not used as a residence. It also needs room to display 10 vehicles, and Virginia has no wholesale license that skips the lot. The full list is under Office.
How many cars can you sell in Virginia without a Dealer License?
In Virginia, selling, offering, or displaying 5 or more motor vehicles for sale in any 12 consecutive months presumes you are a motor vehicle dealer (§46.2-1500). A Dealer License is then required. You can rebut the presumption, and vehicles you acquired for your own use and actually used in good faith don't count.
Does Virginia have a wholesale dealer license?
No. In Virginia, “wholesale” is a type of sale, made to another dealer rather than a consumer (§46.2-1500), not a license. The one wholesale credential is the Foreign Registrant License, for a Dealer licensed in another state selling at Virginia wholesale auctions. An in-state Dealer buys at those auctions on the Motor Vehicle Dealer License.
How long does a Virginia Dealer License take?
The Board must grant or refuse an application within 60 days of receiving it (§46.2-1514), and it publishes no typical processing time. After approval, the Field Representative schedules the opening inspection and hands over the certificate, licenses, and plates on the spot.
Do I need insurance to get a Virginia Dealer License?
Not for the license itself. Automobile liability insurance, or a certificate of self-insurance, is required for each dealer plate before the Board issues it. It must stay in force while the plate is valid. Details under Insurance.
Do I need a business bank account?
No. No section of Virginia's dealer law and none of the Board's application forms asks for a business bank account or an account number. You give the business's SSN or EIN on MVDB 10, and nothing about a bank.
Do salespeople need a license in Virginia?
Yes. Anyone selling for a Virginia Dealer holds a Motor Vehicle Salesperson License (§46.2-1512). It takes a 20-question test at the DMV, a background check from a Board-approved vendor, and $50 a year or $100 for 2 years. A salesperson must be a W-2 employee; an independent contractor isn't a salesperson under Virginia law.
Support
The Motor Vehicle Dealer Board issues every license and registration on this page, and its Field Representatives run the opening inspection. The DMV's part is the qualification test at its Customer Service Centers, plus the titles and registrations for the vehicles you sell.
| Contact | Detail |
|---|---|
| Department | Virginia Motor Vehicle Dealer Board (MVDB) |
| Phone | (804) 367-1100 |
| [email protected] | |
| Address | 2201 West Broad Street, Suite 104Richmond, VA 23220 |
Additional sources (15)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- Code of Virginia Title 46.2, Chapter 15 — dealer licensing law: license types, bond and Recovery Fund, place of business, plates, fees, term, and grounds for denial
- §46.2-1527.1, the Motor Vehicle Transaction Recovery Fund — the $350 fee for 3 years, the $100 fee after, the salesperson and Foreign Registrant fees, and who is exempt
- §46.2-1547, dealer plate insurance — why insurance is required: automobile liability coverage or self-insurance for each dealer plate
- §46.2-1550, use of dealer plates — business, personal, and family use by dealers, dealer-operators, spouses, and employees, plus the 5-day and 24-hour certificates
- §46.2-1546, number of dealer plates — the sales-volume tiers
- §46.2-1511, dealer-operator qualification — the mandatory course for Independent Dealer-Operators and the test
- §46.2-1521, license term — the 12-month term and the 30-day late renewal at 150%
- §46.2-1533, business hours — 20 hours a week, 10 of them between 9 and 5 on weekdays
- §46.2-1534, the sign — the trade name in letters at least 6 inches high
- §46.2-1508, who needs a license — the Board licenses dealers and salespeople; the DMV licenses manufacturers and distributors
- §46.2-1508.1, nonprofit organizations — the 12-vehicle cap and the exemption from the place of business, bond, hours, and sign rules
- §46.2-1577, judicial review — court review of a Board decision
- §19.2-392.15, sealed records — a state license application can't ask about a sealed record
- Virginia Dealer Manual (DMV, PDF) — Chapter 1.3, what to do when the status of your dealership changes: adding a partner, changing the ownership type
- Non-Virginia Motor Vehicle Dealer Certificate of Registration (MVDB 52, PDF) — the Foreign Registrant application
