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Texas Used/Independent Motor Vehicle Dealer Surety Bonds

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A GDN License (General Distinguishing Number) in Texas allows a person to buy, sell or exchange used vehicles. Independent 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.

Surety Bond and License Requirements:

  1. 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.
  2. 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.
  3. If the license is approved, a copy of the license is printed along with a basic independent dealer number or GDN number. The license and dealer plates will then be mailed to the dealer.
  4. Obtain your $50,000 surety bond. Used vehicle dealers that require a surety bond include:
  • Motor Vehicle (autos, cars, trucks, etc)
  • Motorcycle
  • Wholesale Only
  • Wholesale Motor Vehicle Auction
  • Independent Mobility Motor Vehicle

  • A separate surety bond is required for each type of GDN license. Additional locations need to apply for an additional surety bond only if they are located outside of the city boundary.

    Surety 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 a Texas Used Vehicle Dealer Bond Cost?

    The premium that you pay for a Texas Independent Vehicle Dealer Surety Bond is dependent on credit, the number of bonds needed and experience in the vehicle dealer industry. Our rates start at 1.25% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote.

    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.

    Related Links:

    Texas Independent Vehicle Dealer License Information
    Texas Franchise or New Auto Dealer Bond

    More Surety Bond Questions?

    Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


    For a downloadable application