Virginia Motor Vehicle Dealer Bond
Overview
Virginia's dealer bond lives inside the article of the Code of Virginia that created the Motor Vehicle Transaction Recovery Fund, and it is a front-door requirement for licensure. Code of Virginia section 46.2-1527.2 provides that before the Motor Vehicle Dealer Board issues an original license, the applicant must obtain and file with the Board a bond in the amount of $50,000. The bond works alongside the Recovery Fund as Virginia's two-layer financial protection for vehicle buyers.
Who Needs This Bond?
Applicants for an original motor vehicle dealer license from the Virginia Motor Vehicle Dealer Board file this bond — independent used-car dealers, franchised dealers, and other dealer classes licensed under Chapter 15 of Title 46.2. The requirement is triggered by the original license application itself: section 46.2-1527.2 is titled 'Bonding requirements for applicants for an original license,' so if you are seeking your first Virginia dealer license, the $50,000 bond must be filed before the Board acts.
What is this Bond For?
The bond is part of Virginia's Motor Vehicle Transaction Recovery Fund framework — the article of the Code built to compensate people harmed in dealer transactions. It provides a financial guarantee that the new licensee will operate within Virginia's dealer laws, and it gives the Board and harmed parties a source of recovery if the dealer's conduct causes losses, supplementing the Recovery Fund's protections during the dealer's early years in business.
When is it Required?
The statute is explicit about sequence: before the Board issues an original license, the applicant 'shall obtain and file with the Board' the $50,000 bond. Secure the bond while assembling your application package so the filing is ready when the Board reviews it, and keep the coverage in force as required while you remain subject to the bonding provisions of Article 3.1.
Where Does it Apply?
This is a statewide Virginia requirement administered by the Motor Vehicle Dealer Board, which licenses and regulates dealers under Chapter 15 of Title 46.2 of the Code of Virginia. It applies to dealer applicants throughout the Commonwealth, in every county and independent city, because the obligation comes from state statute rather than local ordinance.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed Virginia dealer bond is ready to file with the Motor Vehicle Dealer Board as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement on this page is cited to the Code of Virginia in the Official Sources section below — verify the rules yourself before you buy. The online flow gets your executed bond to you in time for your Board filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- $50,000 bond must be obtained and filed with the Motor Vehicle Dealer Board before an original dealer license is issued; provision sits within the Motor Vehicle Transaction Recovery Fund article: Code of Virginia §46.2-1527.2 (verified July 16, 2026)