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Texas Motor Vehicle Dealer Bond

How much does a $25,000 Texas motor vehicle dealer surety bond cost?

Texas auto dealer bonds are subject to underwriting and cost as little as $250. Although the exact premium is determined by an underwriter and is based on the dealer’s qualifications, the cost of a Texas motor vehicle dealer surety bond is a 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
*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?

Texas motor vehicle 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 in 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 $25,000 bond.

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.

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.

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

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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Additional Resources

Why The DMV Requires Texas Motor Vehicle Dealers To Be Bonded

Texas Department of Motor Vehicle Dealers

Texas Department of Motor Vehicles Forms

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

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