West Virginia Auto Dealer Bond Overview
When you start your dealer licensing process in West Virginia, you’ll need to obtain an auto dealer bond. If you’ve never stumbled upon this term, you might be wondering why it’s required. So how exactly does the bond work?
In practical terms, the West Virginia motor vehicle dealer bond is a three-party agreement. Your dealership is the principal, the State of West Virginia is the obligee requiring the bond, and the surety is the entity underwriting it.
Unlike insurance, the dealer bond functions as a protection for your customers. It guarantees that you can comply with all relevant West Virginia legislation, and thus can ensure lawful handling of your business. In this sense, it is a sign of the trustworthiness of your company.
- Bond: Motor Vehicle Dealer Bond
- Obligee: West Virginia Department of Transportation – Dealer Services
- Required Expiration Date of Dealer Bond: June 30th
- Surety Bond: The bond is not continuous, so it requires a Continuation Certificate
What happens if you fail to follow the law? Then a claim can be made against your bond. Initially, the surety that has underwritten the bond will take care of covering all penal costs, up to the bond amount. However, as the indemnity agreement signed during the bonding states, the dealer needs to fully reimburse the surety afterwards. That’s why it’s wise to stick to state regulations, in order to avoid claims that could seriously harm your dealership.
Auto Dealer Bond Cost in West Virginia
A $25,000 dealer surety bond is required for all motor vehicle dealers in the state of West Virginia.
As with other types of bonding, here you also need to pay only a percentage of the bond amount. If you qualify for the standard bonding market, your bond premium will be between 1% and 3%. This means your bond cost could be between $250 and $1,000 per year.
To get a lower bond premium, there are a few tips that you can follow. One of the most important criterion for determining the price is your credit score. Improving your credit score will certainly help you pay less for the bond. It’s also important to show proof of your dealership’s assets and liquidity, as this illustrates the overall solidity of your business.
Let’s not forget that choosing the right surety is also important for reducing your bond costs. Here at Bryant Surety Bonds, we work with numerous A-rated, T-listed surety companies. This gives us access to exclusive bonding rates that we can offer you. Plus, our experts will find the best match for your West Virginia dealership.
You can get an estimate of your bond price by using our surety bond cost calculator in the right sidebar, or learn more about how your bond premium is calculated on our surety bond cost page.
Bad Credit Program
West Virginia auto dealers with lower credit score, tax liens, bankruptcies or civil judgments might have a difficult time to get bonded. If you’re facing such a situation, don’t get disheartened.
Bryant Surety Bonds operates a bad credit surety bond program to give dealers with problematic finances the chance to get the bond they need and to stay in business. You will need to pay a bit higher premium - between 4% and 7% - in order to compensate for the risk involved. Our bond experts will examine your case and will offer you a tailored solution that best matches your situation.
Dealer Bond Renewal
Your West Virginia dealer license needs to be renewed every year before June 30th, and with that comes bond renewal too. The validity of the bond and the license need to match.
Your bond premium is likely to change from year to year. The reason is that the bond cost is based on your current business status, so if it changes, the price will follow. This is, of course, a good opportunity to improve your overall finances, so that you can pay less for your West Virginia auto dealer bond.
Make sure to follow the renewal dates, as failing to renew on time can leave you non-compliant and out of business. When you get bonded with Bryant Surety Bonds, we’ll take care to send you a reminder in due time, so you don’t miss your renewal deadline.
Get Your West Virginia Auto Dealer Bond Today
The bonding process might sound complicated, but it’s actually quite straightforward. Just apply online and you will get a free quote in no time. You can also call us at (866)-450-3412. Our surety bond experts will be happy to help you out with your application and answer all of your questions.
Once you’ve received your completed bond, make sure to save a copy for future reference, as the original needs to go with your license application.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Freight Broker Bond (BMC-84)||FMCSA||N/A||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||WV Depratment of Transporation||Division of Highways Encroachment||Apply Now|
|Collection Agency Bond||Tax Dept, Internal Auditing Division||Collection Agency||Apply Now|
|Debt Consolidators Bond||Secretary of State||Credit Services Organization Bond||Apply Now|
|Professional Fund Raisers Bond||Secretary of State||Professional Fund Raising||Apply Now|
|Insurance 3rd Party Administrator Bond||West Virginia Insurance Commissioner, Financial Co||Financial Conditions Division Administrators Bond||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Commissioner of Banking||Mortgage Broker||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Commissioner of Banking||Mortgage Lender||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Commissioner of Banking||Mortgage Lender/Originator||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Division of Motor Vehicles - Dealer Services||Motor Vehicle Dealer||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Division of Motor Vehicles - Dealer Services||Motor Vehicle Dealer||Apply Now|
|Oil, Gas, Water or Mineral Wells or Leases Bond||STATE OF WV DEP OIL & GAS DIV||Single Oil or Gas Well, Single Liquid Injection We||Apply Now|
|Oil, Gas, Water or Mineral Wells or Leases Bond||West Virginia Dept of Environmental Protection||Single Oil or Gas Well, Single Liquid Injection We||Apply Now|
|Sport Permits Bond||West Virginia State Athletic Commission||Promoter's License Bond||Apply Now|
|Health Spas/Health Clubs Bond||Office of the Attorney General||Health Club||Apply Now|
|Detectives Bond||Commonwealth Of Virginia Dept of Criminal Justice||Private Security Services||Apply Now|
|Detectives Bond||WV Secretary of State||Detectives Bond||Apply Now|
|Professional Licenses (All Other) Bond||West Virginia of Insurance Commissioner||Professional Employer Organization||Apply Now|
|Professional Licenses (All Other) Bond||West Virginia Department of Natural Resources||Hunting & Fishing License Sales Bond||Apply Now|
|Professional Licenses (All Other) Bond||Divison of Natural Resources||Outfitters and Guides Bond||Apply Now|
|Professional Licenses (All Other) Bond||Secretary of State||Notary Public||Apply Now|
|Schools (All) Bond||State of West Virginia||Private Vocational School||Apply Now|
|Alcohol (Retailers) Bond||WV Department of Revenue||Permit Carrier Bond (WVABCA)||Apply Now|
|Alcohol (All Others) Bond||Alcohol Beverage Control Administration||Non-Intoxicating Beer||Apply Now|
|Alcohol (All Others) Bond||Alcohol Beverage Control Administration||Alcohol Beverage Control||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||WV State Tax Dept.||Motor Fuel Excise Tax Bond||Apply Now|
|Utility Deposit Bond||American Electric Power||In Lieu of Cash Deposit Bond (AEP)||Apply Now|
|Wages & Fringe Benefits Bond||WV Division of Labor||Wage Payment Bond||Apply Now|
|Wages & Fringe Benefits Bond||West Virginia Carpenters Joint Admin. Trust||(WVCJAT)Wages & Fringe Benefits Bond||Apply Now|
|Fringe Benefits Only Bond||Division of Labor||Wage Payment Collection Surety Bond||Apply Now|
|Money Transmitter Bond||THE STATE OF WEST VIRGINIA||Money Currency Exchange, Transmission & Transporta||Apply Now|
|Telemarketing/Phone Solicitor Bond||Secretary of State||Prof. Fund-Raising Counsels & Prof. Solicitors||Apply Now|
|Telemarketing/Phone Solicitor Bond||Secretary Tax and Revenue, W VA Dept. of Tax & R||Office of Telemarketing Registration Corporate||Apply Now|
|Appraisal Management||State of West Virgina||Appraisal Management Companies Bond||Apply Now|