Virginia law requires applicants for an original motor vehicle dealer license to post a $50,000 bond from a licensed surety. This bond ensures the dealer complies with laws and protects consumers from fraud, misrepresentation, or violations, with claims limited to $25,000. The law also allows claimants to recover damages through the bond if they suffer losses due to dealer misconduct.
Applicants must obtain and file a $50,000 bond from a licensed surety before receiving their license.
The bond must come from a corporate surety licensed to do business in Virginia and approved by the Attorney General.
Consumers can recover up to $25,000 for losses caused by dealer fraud, violations, or breach of extended service contracts.
Yes, the Board can suspend the license without a hearing if the dealer does not maintain a sufficient bond on file.