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Texas Motor Vehicle Dealer Bond

Price Varies / 2 year term


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How much does a motor vehicle dealer bond cost in Texas?

Texas motor vehicle dealer bond costs start at $375 for the state-required 2-year term. Your exact premium will be provided after a quick application underwriting review. Your official quote will cover the full 2-year term as required by the state.

How do you apply for a Texas auto dealer bond?

You can apply for your Texas auto dealer bond online 24/7 through our safe and secure application portal. You'll need to provide your dealership name and your existing dealer license number (if applicable) for Department of Motor Vehicles approval. Once your order has been processed, you'll receive your official Texas MVD bond by email.

How fast can I get a surety bond as an auto dealer?

Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver official Texas auto dealer bonds faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed Texas dealer bond delivery.

If you have any questions about Texas auto dealer bonds or your application, call 1(800)308-4358 to speak with one of our friendly surety experts.

Bond Type
$50,000Motor Vehicle Dealer Bond

What is a Texas motor vehicle dealer bond?

Texas Transportation Code: Sec. 503.004 requires individuals file a 2-year $50,000 surety bond as part of the dealership license application process. Dealership owners must file a separate Texas motor vehicle dealer bond and business license for each county in which they operate. The bond form language requires bonded dealers and dealerships pay all valid bank drafts for motor vehicles they purchase and transfer titles for each motor vehicle they sell.

Why do you need a Texas motor vehicle dealer bond?

By filing a Texas MVD bond, you agree to follow Texas Transportation Code when operating your dealership. If you fail to fulfill the bond's terms as outlined in Texas code, claims can be filed against your bond. If an individual obtains a judgment against you as a dealer, the surety company will pay valid claims up to the full $50,000 bond amount, which you must then reimburse.

Watch the video below to learn more about Texas motor vehicle dealer bonds.

Who is required to get a Texas auto dealer bond?

Texas law requires any person who buys, sells, or exchanges motor vehicles (or otherwise works as a dealer, including consignment) to file a $50,000 motor vehicle dealer bond. The DMV requires auto dealer bonds be filed at the county level, and dealerships must have a separate bond and Texas dealer license for each individual county in which they work. Dealers who sell new vehicles need a separate franchise dealer license.

Texas auto dealer bonds are required for vehicle dealer licensing. If you need a bond for vehicle registration, a separate Texas certificate of title bond is required.

Who are the parties involved in a Texas auto dealer bond?

The Texas Department of Motor Vehicles enforces the $50,000 surety bond requirement for the state's dealerships, which makes them the bond's "obligee." The dealership that purchases and files the bond is the "principal," and the surety company that issues the bond, backs its obligations, and pays claims is the "surety."

What is the required amount for a Texas motor vehicle dealer license bond?

The Texas auto dealer bond amount is $50,000. The DMV increased the bond amount from $25,000 to $50,000 on September 1, 2021.

How do I update or change my surety bond form?

If the Texas Department of Motor Vehicles requires your surety bond documentation to be updated for any reason, contact your surety provider. If you purchased your bond from, email [email protected] to explain the needed change.

The most common changes requested are updating the dealership's name or address.

Do motor vehicle dealer bonds in Texas renew?

Texas motor vehicle dealer bonds must be renewed whenever the current 2-year term expires. Once you pay your renewal invoice, renewal instructions will be emailed to keep your bond and Texas dealer license in good standing with the DMV.

How do you get a dealers license in Texas?

Learn How to get a Texas Auto Dealer License by reviewing our comprehensive guide.

You'll apply for your dealership license through the state's online eLICENSING application. You must submit a criminal history review and fingerprinting approval as part of the licensing process. If your application is approved, the Motor Vehicle Division will issue you a general distinguishing number (GDN).

How much does it cost to get a Texas auto dealer license?

The fee for a new independent GDN license is $700.00 for each license category. While applying for the GDN, you can request metal dealer license plates valid for your 2-year license term that can later be renewed. The fee per plate is $90.00.

How do I renew my Texas motor vehicle dealer license?

Renew your GDN license online using the state's eLICENSING system before the current 2-year term expires. The fee to renew an existing license on time is $400. The state adds a 50% late fee for each 30 days late a license is renewed.

Call 1 (800) 308-4358 to talk with a Surety Expert