1. Obtain a Business License:
Contact the clerk's office in the city or county where your business will be located to obtain a business license.
2. Register Your Business Name:
If you plan to operate under a name other than your legal name, you will need to register your business name with the State Corporation Commission.
3. Obtain a Virginia DMV License:
You must obtain a Virginia DMV Dealer License to purchase, sell, and move vehicles.
4. Secure Proper Insurance:
Obtain commercial general liability insurance, property damage insurance, cargo insurance, and worker's compensation insurance to protect your business and employees.
5. Obtain a Surety Bond:
The Virginia DMV requires repossession companies to have a surety bond in place. The bond amount is determined based on the number of vehicles repossessed annually.
6. Register Your Repossession Business with the Virginia State Corporation Commission:
You must register your repossession business with the Virginia State Corporation Commission (SCC). The SCC will provide you with a registration number, which must be displayed on all your business documents and vehicles.
7. Become Familiar with Virginia Repossession Laws:
Familiarize yourself with the Virginia laws related to repossession, including the Virginia Consumer Protection Act, the Virginia Credit Agreement Act, and the Virginia Uniform Commercial Code.
8. Obtain the Necessary Equipment:
Purchase or lease the necessary equipment for your repossession business, including tow trucks, wheel lifts, dollies, and other specialized equipment.
9. Hire and Train Employees:
If you plan to hire employees, ensure they undergo thorough background checks and training to comply with Virginia laws and industry best practices.
10. Establish Policies and Procedures:
Develop clear policies and procedures for your repossession business, including guidelines for repossessing vehicles, handling customer inquiries, and resolving disputes.
11. Get a Vehicle Identification Number (VIN) Check:
Obtaining a VIN check prior to repossession will help you verify that the vehicle you are repossessing is the correct vehicle and is not subject to any liens or encumbrances.
12. Stay Up-to-date on Laws and Regulations: Keep abreast of any changes or updates to the Virginia laws and regulations related to repossession to ensure your business remains compliant.
