How To Become A Car Dealer In The Commonwealth Of Virginia
Dealer Licensing Process

 

The Basics

Generally, to become a dealer, you must meet the following requirements:

  • Satisfy all local zoning regulations in your chosen locality.
  • Have sales, service, and office space devoted exclusively to the dealership of at least 250 square feet in a permanent, enclosed building not used as a residence.
  • House all records the dealer is required to maintain by § 46.2-1529, Code of Virginia.
  • Equip your office space with a desk, chairs, filing space, a working telephone listed in the name of the dealership, and working utilities including electricity and provisions for space heating, and, on and after July 1, 2013, an internet connection and email address.
  • Display business hours and a sign as required by § 46.2-1533 and § 46.2-1534, Code of Virginia, respectively. A dealer must be open a minimum of 20 hours per week. 10 of these hours must be between 9am. - 5pm. Monday through Friday.
  • Have contiguous space designated for the exclusive use of the dealer adequate to permit the display of at least ten vehicles.
  • Pass the required dealer/salesperson test administered at your local area Department of Motor Vehicle, Customer Service Center. A study guide may be found and downloaded from our website.
  • Secure a $50,000 bond.
  • Complete and submit to the board all necessary application forms (see New Dealer Packet), which can be found and downloaded from our website.
  • Pay fees totaling about $600.00.

Beginning January 1, 2006, the dealer-operator of any new independent motor vehicle dealership will be required to successfully complete a course of study before they will be allowed to take the independent dealer-operator qualification test at any DMV Customer Service Center.

The Virginia Community College System and the Virginia Independent Automobile Dealers Association (VIADA) have teamed up to present a two-day course each month at one of the many College campuses throughout the state.

The dealer-operator of any new independent motor vehicle dealership is required to successfully complete a course of study before they will be allowed to take the independent dealer-operator qualification test at any DMV Customer Service Center. “Grandfathered” dealer-operators, title clerks and salespersons are encouraged to take the course as well.

 

Please visit our Dealer-Operator Training Courses page for a complete list of training courses.