How much does an auto dealer bond cost in West Virginia?
Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the West Virginia Department of Motor Vehicles (DMV) as part of the licensing requirements for car dealerships to conduct business in the state. The DMV sets the total bond amount at $25,000. West Virginia auto dealer bonds have different expiration dates based on the type of dealership:
- June 30th expiration date for used car dealer bonds
- June 30th expiration date for new car dealer bonds
- December 31st expiration date for motor vehicle service license bonds
The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for West Virginia auto dealer bonds typically cost between 1% and 3% of the total bond amount.
During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a West Virginia auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for auto dealer surety bonds in the State of West Virginia.
- EZ Surety has issued new motor vehicle dealer bonds for premiums as low as $250.
Why are auto dealer bonds important in West Virginia?
West Virginia auto dealer bonds provide protection for customers, creditors, and the state government. When a West Virginia motor vehicle dealer posts a surety bond, they provide a guarantee to the bond’s Obligee (the DMV) that they will conduct business in compliance with the conditions listed in Article 6, Chapter 17A of the West Virginia Code.
If the auto dealer fails to comply with the statutes, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.
How to get your auto dealer license in West Virginia
To obtain your auto dealer license in West Virginia, you must meet the West Virginia DMV licensing requirements by completing the following steps:
- Submit the application for a dealer license
- Post the $25,000 surety bond. A bond is not required for repo-financial institutions
- Provide a copy of your personal property tax receipt
- Have a valid West Virginia business license
- Provide pictures of the business location
- Provide proof of dealer liability insurance
- Provide a copy of the garage agreement (if applicable)
- Provide a copy of the franchise agreement (if applicable)