West Virginia Motor Vehicle Dealer Surety Bond
A West Virginia motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale of motor vehicles within the State of West Virginia. The West Virginia Division of Motor Vehicles (DMV), Office of Dealer Services requires all dealer license applicants to post a $25,000 surety bond. West Virginia uses a unique July 1 – June 30 fiscal-year licensing cycle and offers a bond waiver after 3 claim-free years. Surety One, Inc. offers quick, no-hassle underwriting for West Virginia motor vehicle dealer bonds.
Bond Amount & Requirements
West Virginia Code Article 6, Chapter 17A requires all motor vehicle dealer license applicants to file a $25,000 surety bond (Form MV-126-DS-P). The bond protects purchasers, sellers, financing agencies, and government agencies from monetary loss stemming from fraud, failure to comply with licensing law, and failure to pay required taxes and fees.
| Bond Amount | License Classification | Bond Required? |
|---|---|---|
| $25,000 | D — New & Used Motor Vehicle Dealer | Yes |
| $25,000 | Duc — Used Motor Vehicle Dealer | Yes |
| $25,000 | Drv — Recreational Vehicle Dealer | Yes |
| $25,000 | Dtr — Trailer Dealer | Yes |
| $25,000 | F — Motorcycle Dealer | Yes |
| $25,000 | Aa — Auto Auction | Yes |
| $25,000 | Wdr — Wrecker, Dismantler, Rebuilder | Yes |
| $25,000 | Ls — License Service | Yes (Dec 31 expiration) |
| N/A | Repo — Financial Institution (Repossession) | No — Exempt |
| N/A | Mfg — Manufacturer | No — Exempt |
| N/A | Trs — Transporter | No — Exempt |
Important — Bond Waiver After 3 Years & Fiscal-Year Cycle: West Virginia allows a bond waiver for dealers who have had no claims for 3 consecutive years, making it one of only two states (with Idaho) offering a complete bond exemption for established dealers. All dealer bonds expire June 30th and a new bond must be filed each year to run concurrently with the July 1 – June 30 license period (the bond is not continuous). Premium is prorated for mid-year purchases. License Service (Ls) dealers are the exception, with a December 31st expiration.
Who Needs This Bond?
West Virginia requires a dealer license for motor vehicle sales. The bond applies to all license classifications except repossession financial institutions, manufacturers, and transporters:
- New & used motor vehicle dealers (D) — $25,000
- Used motor vehicle dealers (Duc) — $25,000
- Recreational vehicle dealers (Drv) — $25,000
- Trailer dealers (Dtr) — $25,000
- Motorcycle dealers (F) — $25,000
- Auto auction dealers (Aa) — $25,000
- Wrecker, dismantler, rebuilder (Wdr) — $25,000
- License service dealers (Ls) — $25,000
How Much Does the Bond Cost?
The cost is a small percentage of the $25,000 bond amount, determined by credit, financials, and experience. Premium is prorated for the remaining portion of the fiscal year. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation.
West Virginia Dealer License Requirements
- Contact Dealer Services at (304) 558-3584 or email DMVDealers@wv.gov to request the Minimum Requirements Packet
- Schedule a pre-inspection of the business location before receiving the application — the inspector delivers the application packet at inspection
- $25,000 surety bond (Form MV-126-DS-P) expiring June 30th
- Dealer liability insurance: minimum $20,000/$40,000/$10,000 (bodily injury single/aggregate/property damage); not required for License Service (Ls) dealers
- Personal property tax receipt in the name of each owner/corporate officer, or affidavit from the county that no taxes are owed
- Photographs of the dealership and sign (letters at least 4 inches in height)
- Valid West Virginia business license from the Secretary of State
- Franchise agreement (new vehicle dealers)
- Upon application receipt, an inspector fingerprints all owners/corporate officers on-site and obtains signed release of information waivers
- Cross-agency background verification through other WV state agencies
Filing, Renewal & Cancellation
Dealer licenses and bonds expire June 30th annually (Ls classification expires December 31st). A new bond must be filed each year to coincide with the license period — the bond is not continuous. The surety may cancel at any time by providing 30 days’ written notice via certified mail to the DMV. After 3 claim-free years, the bond is no longer required.
Bond Claims
The bond covers fraud or fraudulent representation, failure to comply with licensing law, and failure to pay required taxes and fees. Claims protect purchasers, sellers, financing agencies, and government agencies.
West Virginia Division of Motor Vehicles
Office of Dealer Services
5707 MacCorkle Avenue SE
Charleston, WV 25317
Phone: (304) 558-3584 / (800) 642-9066
Email: DMVDealers@wv.gov
Web: transportation.wv.gov/dmv
Surety One, Inc. is the West Virginia surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for West Virginia motor vehicle dealer bonds and all other license bond classes. Call us at (800) 373-2804, email Underwriting@SuretyOne.com, or chat with a live underwriter for immediate assistance.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
What We Need From You
Obligee's Bond Form
