West Virginia Auto Dealer Bond

The cost of a West Virginia auto dealer bond starts at $250. Bond premiums are typically quoted as a percentage of the $25,000 bond amount, so most applicants pay only a small part of the full bond amount.

It's important to understand the difference between the bond amount and what you actually pay. The $25,000 is the maximum a claimant can recover against your bond. It is the coverage limit set by the state, not your cost. What you pay is the annual premium.

Your premium is quoted individually based on three factors: your personal credit score, your experience in the industry, and any prior bond claims on your record. Because each surety company weighs these factors differently, the same applicant can receive meaningfully different quotes from different underwriters.

Even applicants with poor credit can get bonded. A lower credit score means a higher premium, not an automatic denial.

Here’s a breakdown of the West Virginia bond requirement and the premium costs based on your credit score.

1. Submit Your Bond Application

You can apply for your bond online. Just enter some basic information about yourself and your business, and you should be able to submit your application within a matter of minutes. If you have any questions, we are more than happy to assist you.

2. Get a Quote

At Lance Surety Bonds, we want to provide you with the best premium rate possible. For most applicants with a strong credit history, a quote is ready within minutes. More complex applications may take up to 24 hours.

3. Purchase Your Bond

Once you receive your quote, you can pay the bond premium, and you’re officially bonded in West Virginia. You’ll receive an email copy of the bond, and you can request a paper copy if necessary.

4. File your bond with the Auto Industry Division 

Submit your bond as part of your dealer license application to the West Virginia Division of Motor Vehicles Dealer Services.

Filing address:

West Virginia Division of Motor Vehicles

5707 MacCorkle Avenue SE

Charleston, WV 25304

The West Virginia DMV requires a $25,000 surety bond for dealer licensing unless a specific exemption applies. The DMV states that the bond is not required for repo-financial institution, manufacturer, and transporter license classes.

• New and used motor vehicle dealers - A dealer license is required for businesses selling new vehicles or both new and used vehicles in West Virginia.
• Used motor vehicle dealers - West Virginia law separately defines used motor vehicle dealers, and these applicants generally need the $25,000 bond as part of licensing.
• Recreational vehicle, trailer, and motorcycle dealers - These license classes are listed by the DMV under dealer licensing and generally follow the same $25,000 bond requirement unless otherwise indicated.
• Auto auction dealers - Auto auction licensees are listed by the DMV under dealer license classes and generally need the $25,000 bond.
• Wrecker, dismantler, and rebuilder businesses - These businesses are also handled under West Virginia dealer services and may need the bond when licensed under Article 6.
• Exempt license classes - Repo-financial institutions, manufacturers, and transporters are listed by the DMV as not needing the $25,000 surety bond.

The bond protects parties from financial loss caused by dealer fraud or fraudulent representation. A claim can be filed when the dealer’s actions cause a financial loss to a purchaser, seller, financial institution, or agency, or the State of West Virginia.

• Common claim reasons may include:
• Misrepresenting a vehicle’s condition, history, mileage, or title status
• Failing to transfer the title properly
• Accepting payment or deposits without delivering the vehicle or the agreed service
• Fraudulent paperwork or other dishonest conduct tied to the dealership’s licensed business

The maximum payout per bond is the bond's penal sum: $25,000. After any payout, you, as the principal, are liable to reimburse the surety.

How the Claims Process Works?

• Consumer or claimant contacts the surety company directly to file a claim
• The surety investigates the claim to determine its validity
• If the claim is valid, the surety pays the claimant up to the bond's penal sum ($25,000)
• The dealer (principal) is then required to reimburse the surety for any amounts paid out
• Claims on your record can significantly increase your bond premium at renewal

Most West Virginia dealer license classes run from July 1 to June 30, and the bond form covers acts and omissions during that license year. License service businesses follow a January 1 to December 31 licensing year.

Lance Surety will contact you well in advance of your renewal date to help prevent any lapse in coverage.

If your bond is not renewed or is cancelled and not replaced, your dealer license can be at risk because the $25,000 bond is a licensing requirement.

At renewal, the surety company will review your credit. Maintaining a strong credit profile can help keep your premium costs low.

Getting a West Virginia auto dealer license starts with Dealer Services at the West Virginia DMV. The DMV says prospective dealers should request the minimum requirement handout, set an appointment for a pre-inspection of the dealership location, and then complete the application package delivered by the inspector.

The dealer licensing package can include a completed application, $25,000 surety bond, dealer liability insurance, personal property tax receipt or county affidavit, photos of the dealership and sign, a valid West Virginia business license, and garage or franchise agreements if required.

Dealer Services also works with other agencies to confirm items such as Bureau of Employment Programs approval, criminal investigation reports, and tax good-standing letters.

For more information on how to get the license, check our guide: West Virginia dealer license

What is the difference between the bond amount and the bond premium?

The bond amount, also called the penal sum, is the maximum protection offered under the bond: $25,000 for West Virginia motor vehicle dealer bonds. This is not what you pay. The bond premium is the annual cost you pay to purchase the bond, which is a percentage of the bond amount.

What happens if my bond lapses?

If your bond lapses, you are no longer meeting one of West Virginia’s dealer licensing requirements. The DMV can place your license at risk until a valid bond is filed and accepted.

Can my bond be cancelled?

Yes, a surety bond can be cancelled. The West Virginia bond form requires the surety to notify the DMV by certified mail within 30 days of cancellation by the surety or the principal. If your bond is cancelled, you should replace it quickly so your dealer license remains compliant.

Do I need a bond for every salesperson I employ?

West Virginia’s dealer bond requirement is tied to the dealer license, not to each individual salesperson. The DMV application process may still ask for employee information for people authorized to sign documents or transact business with the DMV.

Do I need a separate bond for each dealership location?

It depends on how the West Virginia DMV licenses your additional location. If you operate from more than one location, confirm the bonding and filing requirements with Dealer Services before submitting your application package.