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Texas Motor Vehicle Dealer Bond

How much does a $25,000 Texas auto dealer bond cost?

A Texas auto dealer surety bond costs as little as $250 subject to underwriting. Although it will vary based on of the dealer’s qualification, the cost of a Texas motor vehicle dealer surety bond is a very small percentage of the required bond amount.

Bond Type Bond Amount Cost*
$25,000 Motor Vehicle Dealer Bond 2-year term $25,000 Starts at $250 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.

Please note this page is for vehicle dealer licensing. If you have lost or need to obtain a vehicle title, a Texas certificate of title bond is required.

What is a Texas motor vehicle dealer bond?

Texas motor vehicle dealer bonds in the amount of $25,000 are required by the Department of Motor Vehicles to receive a license to conduct business in the state of Texas.

A Texas MVD bond guarantees that the principal (the dealer) will adhere to all regulations while conducting business as stated by the Texas Transportation Code. If the principal engages in unethical or unlawful practices, the bond is in place to protect any person who suffers financial loss up to the full penal sum of the $25,000 bond.

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 with the license. The bond will be canceled automatically if it is determined that the principal has violated the terms of the bond.

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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 first get a motor vehicle dealer bond and file it with the Texas Department of Motor Vehicles.

Following your bond submission, each dealer must obtain a general distinguishing number, referred to as a GDN, issued by the Motor Vehicle Division.

All relevant forms must be filled out to obtain a GDN through the Texas Department of Motor Vehicles:

  1. All relevant forms will need to be filled out to obtain a GDN through the Texas Department of Motor Vehicles:
  2. Criminal history
  3. Report of material change in criminal history
  4. Application to assign or replace an eLICENSING administrator
  5. Application to provide attorney access to eLICENSING
  6. Evidence of franchise form
  7. Evidence of relocation form

A person who wants to sell new motor vehicles must also acquire a franchised dealer license. 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.

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

The fee for a new GDN license is $700.00 for each license category.

While applying for the GDN, you can request metal dealer license plates that are valid during the term of the license and can be renewed. The fee per plate is $90.00. The number of metal dealer plates depends on the type of GDN license category being applied for.

Refer to the eLICENSING User Guide for Independent GDN Licenses for exact information on plate requirements and what you’ll have to pay.

How to renew a Texas Motor Vehicle Dealer License

GDN licenses are generally issued and renewed for two-year terms. The fee to renew a license on time is $400. An additional charge of $200 will be required if renewed within 30 days after the term has ended, and $200 more if renewed after 60 days.

The license plate/sticker renewal fee is $90 and it is valid for the duration of the license term.

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Additional Resources

Why the DMV Requires Texas Motor Vehicle Dealers to Be Bonded

Texas Department of Motor Vehicles: Dealers

Texas Department of Motor Vehicles: Forms

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