Auto dealer bond is like any other surety bond is required by the state entity so a dealer to get his dealer’s license. Rates vary among 3 factors so the dealer can get the best rate possible.
Factor #1 is the Bond amount needed or required by the State Entity
Factor # 2 is the applicant credit history
Factor #3 is the applicant previous claims history
For example, a Texas auto dealer bond for $50,000 the preferred rate is $329 for a year period based on excellent credit history and no prior claims.
Any person planning on buying, selling or exchanging motor vehicles, or otherwise engaging in business as a dealer, directly or indirectly, including by consignment, must first get a motor vehicle dealer bond and file it with the Texas Department of Motor Vehicles.
Following your bond submission, each dealer must obtain a general distinguishing number, referred to as a GDN, issued by the Motor Vehicle Division.
All relevant forms will need to be filled out to obtain a GDN through the Texas Department of Motor Vehicles:
Report of material change in criminal history
Application to assign or replace an eLICENSING administrator
Application to provide attorney access to eLICENSING
Evidence of franchise form
Evidence of relocation form
A person who wants to sell new motor vehicles must also acquire a franchised dealer license. Each license type has an information packet that walks prospective dealers through the application and describes all documentation necessary to apply for that license type.
How much does it cost to get a Texas auto dealer license?
The fee for a new GDN license is $700.00 for each license category.
While applying for the GDN, you can request metal dealer license plates that are valid during the term of the license and can be renewed. The fee per plate is $90.00. The number of metal dealer plates depends on the type of GDN license category being applied for.
GDN licenses are generally issued and renewed for two-year terms. The fee to renew a license on time is $400. An additional charge of $200 will be required if renewed within 30 days after the term has ended, and $200 more if renewed after 60 days.
The license plate/sticker renewal fee is $90 and it is valid for the duration of the license term.
For more information visit us at www.allstatesuretybonds.com