How much does a $25,000 Texas motor vehicle dealer bond cost?
Texas motor vehicle dealer bonds can be issued for as little as $250. Although the exact premium is determined by an underwriter and is based on the dealer’s qualifications, the cost of an auto dealer bond is a small percentage of the required bond amount.
|Bond Type||Bond Amount||Cost by Credit Score*|
|680 and up||679 - 600||599 or lower|
|Motor Vehicle Dealer Bond 2-year term||$25,000||Starts at $250||$250-750||$750+||Apply Now|
Call SuretyBonds.com at 1 (800) 308-4358 or click here to connect with a surety expert who will walk you through each step of our fast and easy bonding process.
What is a Texas auto dealer bond and why do I need one?
Texas auto dealer bonds in the amount of $25,000 are required by the Department of Motor Vehicles in order to receive a license to conduct business in the state of Texas.
A Texas vehicle dealer bond guarantees the dealer will follow all rules and regulations of the Texas Transportation Code, including the payment of all valid bank drafts and checks drawn by him or her for the purchase of motor vehicles, as well as transferring valid titles to each motor vehicle that he or she plans to sell.
If the principal engages unethical or unlawful business practices, the bond is in place to protect any person who suffers financial loss up to the full penal sum of the bond ($25,000).
Terms of the Texas Auto Dealer Bond
Texas motor vehicle dealer bonds remain in effect until canceled as long as they are renewed every two years. The bond will be canceled automatically if it is determined that the principal has violated the terms of the bond.
How to get a Texas Motor Vehicle Dealer License
Any person planning on buying, selling or exchanging motor vehicles, or otherwise engaging in business as a dealer, directly or indirectly, including by consignment, must receive a general distinguishing number, referred to as a GDN, issued by the Motor Vehicle Division. A person who wants to sell new motor vehicles must also acquire a franchised dealer license from the Motor Vehicle Division.
Each license type has an information packet that walks prospective dealers through the application and describes all documentation necessary to apply for that license type.
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