West Virginia Auto Dealer Bond— $25,000 -- With Key Exemptions

Three dealer types are exempt from the $25,000 surety bond in West Virginia: transporter dealers, manufacturer dealers, and repo-financial institution dealers. Transporters only move vehicles and do not sell to the public. Manufacturers are regulated separately under franchise law. Repo-financial institutions are banks and finance companies repossessing and liquidating financed vehicles. All other dealer types -- including new, used, motorcycle, house trailer, recreational vehicle, and wrecker/dismantler/rebuilder dealers -- must file the $25,000 bond on Form MV-126-DS-P.

Form MV-126-DS-P is the official West Virginia DMV surety bond form required for dealer licensing under WV Code Article 17A-6. The bond is in the penal sum of $25,000 payable to the West Virginia Division of Motor Vehicles. If a dealer makes fraudulent representations causing financial loss, the surety is obligated to pay up to $25,000. This form is available from the WV DMV website or by contacting the Dealer Section at (304) 926-0705.

The initial application fee is $250, with $125 refunded if the application is denied. Annual renewal fees vary significantly by dealer type: new and used motor vehicle dealers pay $100/year (includes one Class D plate), house trailer dealers pay $25/year (includes four Class D-T/R plates), motorcycle dealers pay just $10/year (includes two Class F plates), and wrecker/dismantler/rebuilder dealers pay $15/year.

West Virginia requires Dealer Vehicle Liability and Property Damage Insurance with minimum coverage of 20/40/10 (that's $20,000 per person, $40,000 per accident for bodily injury, and $10,000 for property damage) documented on Form DMV-126-DS-J. This is required unless you're operating solely as a license service. The insurance requirement is separate from and in addition to the $25,000 surety bond.

West Virginia requires a permanent dealership sign with letters no less than 4 inches in height, visible from the road. Photos of both the dealership facility and sign must be submitted with your license application. The business location must be an established commercial facility meeting WV DMV standards -- residential locations are generally not permitted for dealer operations.

The West Virginia DMV Dealer Licensing Section can be reached by phone at (304) 926-0705 or by email at DMVDealers@wv.gov. Visit the Motor Vehicle Dealer Resource Page at transportation.wv.gov for forms, requirements, and current processing information. For bond-related questions, we provide same-day issuance on Form MV-126-DS-P.

West Virginia's $25,000 bond is half of neighboring Virginia's $50,000 requirement and matches Ohio and Pennsylvania's range. Kentucky uses a tiered system from $15,000 to $100,000 based on dealer volume. WV's flat $25,000 amount keeps things straightforward and affordable, with annual premiums starting around $250 for applicants with good credit.

West Virginia dealer bonds renew annually. The bond must remain in force for the entire license period. If your bond is canceled, you must immediately cease dealer operations and your license will be suspended. The surety provides advance notice before any cancellation. To maintain continuous coverage, pay your annual bond premium before the renewal date. We send renewal reminders well in advance.