Texas Car Dealer Surety Bond Apply now

Who needs a Texas Car Dealer Bond?

You need a Texas dealer bond if you sell more thank five vehicles a year. Texas Transportation Code Chapter 504 requires this it to protect your clients.  It’s also known as the Texas motor vehicle dealer bond or Texas auto dealer bond.

The state defines “dealer” as a person who actively buys, sells, or exchanges vehicles at an established and permanent location.  Almost every dealer needs a license and surety bond to operate with few exceptions.  For example: A trailer dealer does not need surety bond.  However, it does need a license and GDN from the State of Texas.

How much is a Texas Dealer Bond?

Texas dealer surety bonds can be very inexpensive.  The pricing starts at $450 for the entire 2 year license term and is based on your personal credit score.  The state requires the bond to be effective for two years which is the same as your license term.  It must start on the first day of the month and end in the month before it starts two years after issuance.  For example: If you’re applying for a license in December 2019, your bond should have an expiration date of November 30th, 2021.

How do I apply for a Texas Motor Vehicle Dealers Surety Bond?

  1. Complete our online Texas Motor Vehicle Dealers Surety Bond application, or
  2. Download and complete our printable Texas Motor Vehicle Dealers Surety Bond application, and
  3. Receive your surety bond quote in minutes!

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What types of Car Dealer/ Motor Vehicle Dealer Licenses exist in Texas?

  • Independent Motor Vehicle Dealer– A dealer other than a franchised vehicle dealer, independent mobility motor vehicle dealer, or wholesale dealer.
  • Franchised Motor Vehicle Dealer – A person engaging in the business of buying, selling, or exchanging new motor vehicles at an established place of business under a franchise in effect with a motor vehicle manufacturer or distributor.
  • Wholesale Motor Vehicle Dealer – A person who sells motor vehicles only to a person who is the holder of a dealer’s general distinguishing number or foreign dealer authorized to purchase motor vehicles in Texas without remitting the motor vehicle sales tax.
  • Motorcycle Dealer – A person who sells a vehicle designed to propel itself with not more than three wheels in contact with the ground.
  • House Trailer Dealer – A person who sells mobile homes.
  • Trailer or Semitrailer Dealer – A person who sells a vehicle designed or used with a motor vehicle so that part of the vehicle with its load rests on or is carried by another vehicle.
  • Independent Mobility Motor Vehicle Dealer – A person who sells motor vehicles designed with a permanently lowered floor or permanently raised roof.

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