How to get a dealer license in Virginia

It is unlawful to do business in Virginia as a motor vehicle dealer or salesperson without a license (Va. Code 46.2-1508). A dealer is anyone who, for money or other value, buys for resale, sells, or exchanges motor vehicles, or arranges or negotiates their sale for others, or who is in the business of selling them (Va. Code 46.2-1500). Anyone who offers to sell, sells, displays, or permits the display for sale of five or more motor vehicles within any 12 consecutive months is presumed to be a dealer and may rebut that presumption. People disposing of vehicles they acquired and actually used themselves in good faith are excluded.

• Independent motor vehicle dealer (used car and truck): Dealers in used motor vehicles. The dealer-operator must complete the Independent Dealer-Operator course and pass the qualification exam before the license is issued.
• Franchised motor vehicle dealer: Dealers selling new vehicles under a franchise agreement with a manufacturer or distributor. The application must include the franchise and service agreement, and the dealer-operator needs a franchise dealer-operator certificate of qualification.
• Motorcycle, recreational vehicle, trailer, ambulance, funeral vehicle, and fire-fighting vehicle endorsements: Franchised or independent dealers who sell these vehicle types. Each additional license type sold at the same location costs $50 a year.
• Salesperson license: Everyone who sells vehicles for a dealer, after a criminal background check (Form MVDB-61, $50 a year). A dealer-operator who passes the combined exam can also be licensed as a salesperson.
• Supplemental sales location license: Licensed dealers selling at another site: permanent for premises less than 500 yards from the main location, or temporary for up to 7 days (14 days for trailers and motorcycles). $40.
• Certificate of Dealer Registration (non-Virginia dealers): Dealers licensed in another state who sell only at Virginia wholesale auctions. They may not sell at retail or directly to Virginia dealers. Form MVDB-52, $100 plus a $60 Recovery Fund fee.
• Nonprofit organization certificate: 501(c)(3) charities that consign donated vehicles to licensed Virginia dealers. $25 a year.

Surety bond. New dealers file a $50,000 bond on Form MVDB-2 from a corporate surety licensed in Virginia and approved by the Attorney General (Va. Code 46.2-1527.2), and pay a $350 Transaction Recovery Fund fee each year, both for the first three consecutive years. After three years with no claims against the bond or the Fund, the dealer pays a $100 yearly Fund fee and no longer needs the bond (Va. Code 46.2-1527.1). A renewing dealer with three claim-free years can instead keep a continuous $100,000 bond and leave the Fund (Va. Code 46.2-1527.9). MVDB's fee chart says a break in bond coverage restarts the three-year count, with a $50 reinstatement fee, and sets separate Fund and bond rules for additional locations.

Insurance. Dealer plates require automobile liability insurance, or a certificate of self-insurance, for each plate, kept in force as long as the plate registration is valid whether or not the plate is in use (Va. Code 46.2-1547). The dealer plate application (MVDB-9) must include a copy of the liability insurance showing the number of plates insured. The insurance rule does not apply to trailer or watercraft trailer plates.

Place of business. You need an established place of business that you own or lease, where a substantial part of your sales activity happens, and that meets local zoning. It must have at least 250 square feet of sales, service, and office space used only by the dealership in a permanent, enclosed building that is not a residence; a desk, chairs, filing space, a working phone listed in the dealership's name, electricity, heat, an internet connection, and an email address; your required records; and contiguous space for your exclusive use to display at least 10 vehicles (Va. Code 46.2-1510). Retail dealers need a permanent sign with the trade name in letters at least 6 inches high, visible from the front of the office (Va. Code 46.2-1534). You must be open at least 20 hours a week, at least 10 of them between 9 a.m. and 5 p.m. Monday through Friday, with hours posted at the main entrance (Va. Code 46.2-1533). MVDB also asks for a posted list of salespersons and a processing fee sign if you charge one. The local zoning official signs Form MVDB-19, and an MVDB field representative inspects the site before you open.

Background check. Before a dealer submits Form MVDB-61 for a new salesperson, including a dealer-operator who will also sell, the applicant needs a criminal background check from an MVDB-approved provider (Screening One, Partnership Screening International, Reliantcy, or The Cole Group). The provider assigns a background identifier code that goes on the MVDB-61. The license application (MVDB-10) asks whether any owner, partner, officer, or dealer-operator has been convicted of a felony, of a fraudulent or criminal act in selling vehicles, of vehicle larceny or receiving or selling a stolen vehicle, or of odometer tampering, or has had a dealer license refused, suspended, or revoked.

Pre-license education. Required. Approved courses and details.

1. Register your LLC or corporation with the Virginia State Corporation Commission, if you use one.
2. Have your dealer-operator complete the two-day Independent Dealer-Operator course taught by VIADA, then pass the qualification exam at a DMV Customer Service Center using Form MVDB-57 ($50 test fee).
3. Secure a location with at least 250 square feet of office space, display space for at least 10 vehicles, a 6-inch-letter sign, and posted hours, and have the local zoning official sign Form MVDB-19 within 30 days before you submit.
4. Buy a $50,000 surety bond on Form MVDB-2, dated within 30 days before you submit.
5. Get a criminal background check from an MVDB-approved provider and complete Form MVDB-61 for each salesperson, and get liability insurance for any dealer plates (Form MVDB-9).
6. Prepare a buyer's order that meets Va. Code 46.2-1530, using the MVDB-44 checklist.
7. Send the original Forms MVDB-10, MVDB-2, MVDB-19, MVDB-9, and MVDB-61 with the fees, including the $270 dealer certificate fee and the $350 Recovery Fund fee, to the Motor Vehicle Dealer Board.
8. Pass the opening inspection by your MVDB field representative, then receive your license materials and open.

Official forms:

• Motor Vehicle Dealer License Application for Initial License/Renewal/Change (MVDB-10)
• Motor Vehicle Dealer Bond (MVDB-2)
• Dealer Plate Application (MVDB-9)
• Certificate of Zoning Compliance: New and Used Car/Truck Dealer (MVDB-19)
• Dealer-Operator/Salesperson Qualification Test Application (MVDB-57)
• Salesperson License Application (MVDB-61)
• Dealer Applicant Letter (MVDB-15)
• Buyer's Order Checklist (MVDB-44)
• Non-Virginia Motor Vehicle Certificate of Registration (MVDB-52)

No. Every Virginia motor vehicle dealer needs an established place of business with contiguous space to display at least 10 vehicles and at least 250 square feet of office space in a permanent building that is not a residence (Va. Code 46.2-1510). The MVDB license application lists no wholesale-only license type; dealers licensed in other states can register only to sell at Virginia wholesale auctions.

Dealer-only auctions require a dealer license. A Virginia dealer does not need a supplemental license to sell at a wholesale auction, and dealers licensed in other states can sell at Virginia wholesale auctions after getting a certificate of dealer registration (Form MVDB-52; $100 plus a $60 Fund fee). AuctionACCESS (auctionaccess.com) limits membership to licensed, credentialed vehicle dealers and their authorized representatives.

Licenses last 12 months and are renewed every year (Va. Code 46.2-1521). MVDB mails a renewal packet about 30 days before expiration, and the signed forms and fees must be postmarked by the last day of the month the license expires. A renewal up to 30 days late costs 150% of the normal fees (for example $405 for the dealer certificate), and a later one is treated as a new application. After three claim-free years the Fund fee drops to $100 a year and the $50,000 bond is no longer required. Dealer-operators must recertify every 24 months through an online course or test.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Virginia Motor Vehicle Dealer Board (MVDB) before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Virginia.