Auto dealer bonds, sometimes called motor vehicle dealer bonds or car dealer bonds, are government required surety bonds that auto dealers must purchase to obtain a dealer license. Auto dealer bonds protect the public from financial harm resulting from violations of licensing law committed by the auto dealer. Texas auto dealer surety bonds rates start from $329/ 2 years based on good credit history.
The Texas Department of Motor Vehicles requires that all Texas auto dealers secure a surety bond in the amount of $25,000 for a 2 year period. This is a licensing requirement in order to engage in vehicle sales in the state of Texas. A surety bond is required for all GDN categories of a motor vehicle, motorcycle, wholesale only, wholesale motor vehicle auction and independent mobility motor vehicle, but a surety bond is not required of franchised dealers, travel trailer dealers, or trailer/semitrailer dealers.
As required by the state of Texas, these surety bonds are issued for a two-year term, expire on the last day of the month, and are not permitted to expire during the licensing period. All State Bonds is a licensed bonding company in Texas and offers exceptional rates for Texas Motor Vehicle Dealer Bonds.
The following information will be needed to complete the Texas Department of Motor Vehicles licensing process:
Surety Bond in the coverage amount of $50,000 for 2 years
Business Details including physical address (“The Licensed Location”) DBAs, mailing address, additional/supplemental locations, and Dealer Plates
Ownership Information including Criminal History, and Military Service
Place of Business Structure including Proposed Location, Signage, Posted Business Hours, Lease/Ownership of Dealership Property, and Display Area
Previously Held Texas Licenses
Property Compliance including Proof of Occupancy and Place of Business Location
Previous Texas Occupations Code Violations
Assumed Name Certificate
Proof of Owner Identity
Certificate of Incorporation
Criminal Court Papers
How Much Does a Motor Vehicle Dealer Bond Cost in Texas?
Like all other surety bonds, Auto Dealer Bonds vary in price based on applicant credit history and years in business. There are 3 main factors that play into the cost of an Auto Dealer Bond. They are as follows: Credit History, years in business, any criminal background. Texas auto dealer bonds start from $328/ 2 years Apply Now Online,