New and used auto dealers operating in the Commonwealth of Virginia are required to be tested on auto dealership knowledge and meet other requirements for licensing.
The process involves 7-steps.
Additionally, both new and renewal applicants must provide evidence of a surety bond.
AmeriPro Surety Bonds offers the auto dealer bond as both a new and renewal surety bond.
The Virginia motor vehicle dealer bond is a $50,000 surety bond required by the state’s Motor Vehicle Dealer Board (MVDB), which regulates auto dealership businesses in the Commonwealth.
Qualifying for this auto dealer surety bond will require:
As a broad general rule, an applicant with good credit may pay just above 1.25% annually for a Virginia auto dealer bond; however, the amount that any applicant may pay may be up to 5%, as judged by the above criteria.
For some applicants, there may exist an option to prepay this bond for up to 3 years, thereby offering an savings over annual registration.
Once issued, the Virginia motor vehicle dealer bond is active for one year from the date of issuance.
According to the MVDB, the surety bond must be dated within 30 days of your submission of the auto dealership application.
The Virginia motor vehicle dealer bond is a financial guarantee, for the MVDB and the people of the Commonwealth, that a licensed and authorized dealer/dealership will be in compliance with all laws regulating the sales of vehicles.
The surety bond protects the public against acts of fraud, theft, or criminal malfeasance and misfeasance on the part of an auto dealership. The protections offered by this bond also include wrongful acts committed by employees, agents, and managers of a bonded auto dealership.
According to §46.2-1527.5 of the state’s statutes, the maximum amount of recovery for one claimant against your surety bond is $20,000. This is regardless of the amount of judgment given in a court of law.
The maximum amount of recovery for all is the aggregate total of the bond’s amount, $50,000.
As principal of this surety bond, it is not an insurance policy. You are therefore liable to reimburse the surety for all costs and claims involved in the settlement of any claims, if such were ever the case.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary surety bonds throughout Virignia.
We also provide surety bonds nationwide.
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