Dealer Surety Bond in Virginia: $10,000–$100,000 Requirement
Virginia requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Virginia
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Virginia
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Virginia-Specific Note
Virginia-Specific Facts for Dealer Surety Bond
Virginia Vehicle transfer fees and requirements
In Virginia, the title transfer fee is $15 and registration costs $30.75 - $35.75 per year. Vehicle sales are subject to 4.15% motor vehicle sales and use tax (SUT). Virginia does not require notarization for private-party vehicle transfers. Emission testing is required in Virginia — verify the vehicle passes before completing the sale.
- 4.15% SUT applies to all vehicle sales
- Annual safety inspection required
- Emissions testing required in Northern Virginia, Richmond, and Hampton Roads
- Title transfer within 30 days of purchase
Virginia sales tax on vehicle purchases
Virginia has a 4.15% state sales tax rate. 4.15% motor vehicle SUT statewide. Private-party vehicle sales in Virginia are subject to sales tax. Motor vehicle sales and use tax applies to all sales. The title transfer fee is $15.
Virginia bill of sale statistics
BillOfSaleNow has generated 2,073 bill of sale documents for Virginia transactions, with 56 generated this month alone. The most popular vehicle type is car.
More Virginia Vehicle Guides
- Vehicle Shipping Tax in Virginia
- Window Sticker (Monroney) in Virginia
- Abandoned Vehicle Title in Virginia
- Auto Auction Buyer Guide in Virginia
- Buy Here Pay Here in Virginia
- Car Buy-Back Program in Virginia
Each guide is written specifically for Virginia laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Virginia?
Virginia requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Virginia?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Virginia?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Virginia dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Virginia?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Ready to Document Your Vehicle Sale?
Create a legally compliant Virginia bill of sale in minutes.
Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.