A Texas Motor Vehicle Dealer Bond is required for anyone who wants to sell cars, trucks, or other motor vehicles in Texas. This $50,000 bond protects consumers and the State of Texas if a dealer breaks the law or acts dishonestly—like selling stolen vehicles, misleading customers, or failing to properly transfer title…
Overview
What it is.
A Texas Motor Vehicle Dealer Bond is required for anyone who wants to sell cars, trucks, or other motor vehicles in Texas. This $50,000 bond protects consumers and the State of Texas if a dealer breaks the law or acts dishonestly—like selling stolen vehicles, misleading customers, or failing to properly transfer title…
Who usually needs it
Individuals or businesses applying for a Texas motor vehicle dealer license who are obtaining a General Distinguishing Number (GDN) as independent motor vehicle dealers, motorcycle dealers, mobility motor vehicle dealers, wholesale motor vehicle dealers, or wholesale auction dealers. This applies to anyone who buys, sells, exchanges, or deals in motor vehic…
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateTXBond amount$50,000ObligeeState of TexasBond classLicense BondCategoryMotor VehicleBondTexas Motor Vehicle Dealer BondJurisdictionStatePlain descriptionA Texas Motor Vehicle Dealer Bond is required for anyone who wants to sell cars, trucks, or other motor vehicles in Texas. This $50,000 bond protects consumers and the State of Texas if a dealer breaks the law or acts d…Who needs this bondIndividuals or businesses applying for a Texas motor vehicle dealer license who are obtaining a General Distinguishing Number (GDN) as independent motor vehicle dealers, motorcycle dealers, mobility motor vehicle dealer…
