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Texas Motor Vehicle Dealer Bond

How much does a Texas motor vehicle dealer bond cost?

SuretyBonds.com issues two-year Texas auto dealer bonds for as little as $250!

Your exact price will be a percentage of the bond amount determined by an underwriter who will review your application prior to providing a quote.

Bond Type Bond Amount Cost by Credit Score*
680 and up 679 - 600 599 or lower
Texas Motor Vehicle Dealer Bond 2-year term $25,000 Starts at $250 $250-750 $750+ Apply Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

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 motor vehicle dealer bond and why do I need one?

Automobile dealers are required to submit a $25,000 surety bond to the Department of Motor Vehicles before receiving their license to conduct business within the state.

A Texas vehicle dealer bond ensures 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 Motor Vehicle 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.

Complete licensing information can be accessed on the Texas Department of Motor Vehicles Dealer website.

Ready to get started?

Get a FREE Texas Motor Vehicle Dealer Bond Quote Today!

Additional Resources

Why The DMV Requires Texas Motor Vehicle Dealers To Be Bonded

Texas Department of Motor Vehicles Forms

Texas Trasportation Code: Sec. 503.004 Buying, Selling, Exchanging, or Manufacturing Vehicles.

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