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Does a Texas Used Motor Vehicle Dealer Have a Bond Requirement?

A Texas Motor Vehicle Dealer shakes hands with customers

A GDN License (General Distinguishing Number) in Texas allows a person to buy, sell or exchange used vehicles. Dealer applicants can apply for a license through the Texas Department of Motor Vehicles (TxDMV) online portal. The licensee must obtain a bond unless they are a new/franchised dealer, travel trailer dealer, or trailer/semitrailer dealer.

Applicants complete the application online and pay the applicable license fee. The application will then be given a Work Item Number. This number will be emailed to the applicant as well as other basic information.

Licensing specialists at TxDMV will then review the application and either approve it or request additional information. If additional information is required, the information must be provided as soon as possible.

If the license is approved, a copy of the license is printed along with a GDN number. The license and dealer plates will then be mailed to the dealer.

Obtain your $25,000 surety bond from SuretyGroup.com. Used vehicle dealers that require a bond include:

  • Motor Vehicle (autos, cars, trucks, etc)
  • Motorcycle
  • Wholesale Only
  • Wholesale Motor Vehicle Auction
  • Independent Mobility Motor Vehicle
  • A separate bond is required for each type of GDN license. Additional locations need to be bonded only if they are located outside of the city boundary.

    Bonds are for a two-year period and expire on the last day of the month. The bond and license must have the same expiration dates.

    How Much Will This Bond Cost?

    The premium that you pay for a Texas Used Vehicle Dealer Bond is dependent on credit, the number of bonds needed and experience in the vehicle dealer industry.

    Did You Know?

    When advertising a vehicle on the internet, it is unlawful to offer an online price that is different from any other form of advertising or displayed on the vehicle.

    Contact SuretyGroup.com

    Phone: 1‑844‑432‑6637
    Fax:     404-351-3237
    Hours: 8:00-5:00 CST, Monday through Friday

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