How to get a dealer license in West Virginia

W. Va. Code 17A-6-1(a)(2) defines a used motor vehicle dealer as a person engaged in, or holding out to the public as engaged in, the business of selling 10 or more used motor vehicles, and projecting to sell 10 or more, in any fiscal year. "Selling" includes offering, displaying or advertising for sale, and buying and exchanging. Under the dealer licensing rule (91 CSR 6-11.3), selling 10 or more used vehicles in a 12-month period creates a rebuttable presumption that you are in the dealer business. Separately, arranging the sale of more than two vehicles a year for a fee is illegal brokering unless you are a licensed dealer (W. Va. Code 17A-6-1a).

• Class DUC (Used motor vehicle dealer): Selling used motor vehicles, at retail or wholesale. Needs an established place of business, a $25,000 bond and dealer liability insurance. $250 application fee, $100 yearly renewal.
• Class D (New and used motor vehicle dealer): Selling and leasing new and used motor vehicles under a franchise from the manufacturer. By statute the location needs at least 1,200 sq ft of display area, a 144 sq ft office, a phone listed in the dealership's name, and at least 20 open hours a week.
• Class DRV (Recreational vehicle dealer): Selling new or used recreational vehicles, which state law defines as motorboats, motorboat trailers, ATVs, travel trailers, fold-down camping trailers, motor homes, snowmobiles and UTVs.
• Class DTR (Trailer dealer): Selling trailers and house trailers. $25 yearly renewal.
• Class F (Motorcycle dealer): Selling new or used motorcycles. $10 yearly renewal.
• Class WDR (Wrecker/dismantler/rebuilder): Dealing in wrecked or damaged motor vehicles to sell their parts or scrap, or rebuilding salvage vehicles for resale to the public. $15 yearly renewal.
• Class AA (Auto auction): Running an automobile auction business. $250 application fee, $100 yearly renewal.
• Mfg (Manufacturer): Reconstructing, assembling or reassembling vehicles with a special type of body required by the buyer. No bond required.
• Trs (Transporter): Transporting vehicles between manufacturing, assembling or distributing plants and dealers, manufacturer sales agents or buyers. No bond required.
• Repo-Financial Institution: A class DMV lists for repossession and financial institutions. $100 application fee, $100 yearly renewal, no bond required.
• Ls (License Service): Processing DMV documents for the public for pay. $25 application fee and $25 renewal. Needs a $25,000 bond but no dealer liability insurance, and the office may be in a residence.

Surety bond. $25,000 bond on DMV Form MV-126-DS-P from a corporate surety authorized in West Virginia. It covers fraud or fraudulent representations that cause a loss to a buyer, seller, lender or the state, and runs with the July 1 to June 30 license year. Not required for repo-financial institutions, manufacturers or transporters. A dealer with no paid bond or Dealer Recovery Fund claim, suspension, revocation or civil penalty in the three years before the fees are assessed may stop keeping the bond (W. Va. Code 17A-6-2a(c)(1)), but must get a new bond within 30 days if a later claim, penalty, suspension or revocation occurs and keep it for three license years (91 CSR 6-14.2). Dealers also pay a $150 Dealer Recovery Fund fee each year.

Insurance. Required. Attach a certificate of liability insurance from an insurer authorized in West Virginia, covering the dealer and anyone driving its vehicles with its express or implied permission, for the July 1 to June 30 license year. W. Va. Code 17A-6-4(a) and DMV's dealer licensing page list 20/40/10 ($20,000 per person, $40,000 per accident, $10,000 property damage). DMV's certificate form (DMV-126-DS-J) and its minimum requirements handout call for 25/50/25. Dealers not covered by a vehicle policy need a $50,000 general liability policy. The insurer must notify DMV in writing before the policy is cancelled.

Place of business. Choose a location that is free of any other business and not at a residence, and have it pre-inspected by a DMV inspector. DMV's minimum requirements handout lists: an office of at least 144 sq ft with furniture, heat and light, posted office hours (at least 20 hours a week) and a telephone listed in the dealership's name; a permanently mounted sign with letters at least 4 inches high stating the business name, visible from the nearest street or highway; space to service vehicles sold, which for a used dealer can be at a third party's shop under a written garage agreement; and a display area of at least 1,200 sq ft used only for vehicles for sale. The dealership name must show the license type (for example "Used" or "Pre-Owned"). The 2024 dealer licensing rule (91 CSR 6-5) also requires a permanent building on a foundation with fixed utility connections, utility bills in the business's or applicant's name, a business email address, and the license, insurance certificate and bond displayed in the office. You also need a West Virginia business license, and the location must comply with state law and local ordinances.

Background check. After Dealer Services receives the application, an inspector fingerprints every owner and corporate officer and has each sign a release of information waiver. DMV then confirms that applicants are not delinquent on unemployment obligations, that criminal investigation reports come back "no record", and that the Tax Department sends a letter of good standing for all owners and officers. By law, a prior conviction can block a first license only if the crime bears a rational nexus to the licensed activity, and applicants must be at least 18 and current on their taxes (W. Va. Code 17A-6-6).

Pre-license education. West Virginia does not require a pre-license course for this license.

1. Get the minimum requirements handout from Dealer Services by calling (304) 926-0705 or emailing [email protected].
2. Pick a location that is free of any other business and not at a residence, and set up the office, sign, display area and service space or garage agreement.
3. Contact Dealer Services to set a pre-inspection of the location. The inspector delivers the application package.
4. Get a $25,000 surety bond on Form MV-126-DS-P and dealer liability insurance certified on Form DMV-126-DS-J.
5. Get a West Virginia business license and, for each owner or officer, a personal property tax receipt or a county affidavit that no taxes are owed.
6. Submit the completed application with photos of the dealership and sign, any garage or franchise agreement, the $250 application fee and the $150 Dealer Recovery Fund fee.
7. Meet the inspector DMV sends after it receives your application, who fingerprints each owner or officer and collects signed release of information waivers.
8. Receive your license certificate and dealer plates once the criminal, tax and unemployment checks clear, then renew every year before June 1.

Official forms:

• Minimum Requirements for a Motor Vehicle Dealer, W/D/R, and Automobile Auctions
• Surety Bond Form (MV-126-DS-P)
• Dealer Vehicle Liability and Property Damage Certificate of Insurance (DMV-126-DS-J)
• Dealer Renewal Application (DMV-126-E-DS)
• Application for Additional Dealer License Plates (DMV-126-DS-O)
• Formula for Issuance of Dealer Plates (DMV-99-DS).pdf)
• Notice of Change in Dealership (DMV-126-M-DS)

No. DMV lists no wholesale-only or office-only dealer class, and a used dealer needs an approved established place of business in a permanent building that is not a residence. DMV's minimum requirements handout also calls for a display area of at least 1,200 sq ft used only for vehicles for sale.

Dealer-only auctions sell to licensed dealers, so you need a dealer license to buy there, and West Virginia licenses auto auctions as their own class (AA). AuctionACCESS (auctionaccess.com), which provides credentialing for over 400 auction marketplaces and online channels, limits membership to licensed, credentialed vehicle dealers and their authorized representatives.

Every year. All dealer licenses expire June 30. Submit the Dealer Renewal Application (Form DMV-126-E-DS) before June 1; DMV processes dealer renewals online at wv.accessgov.com/dealer. Include the $100 renewal fee, the $150 Dealer Recovery Fund fee, a new bond on Form MV-126-DS-P with a power of attorney, liability insurance details, and the prior year's personal property tax receipt. By statute, a renewal filed less than 30 days before expiration requires the same fee as an original license, $250 (W. Va. Code 17A-6-7).

This is general information, not legal advice. Rules and fees change, so confirm the details with the West Virginia Division of Motor Vehicles, Dealer Services 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 West Virginia.