The Texas Department of Motor Vehicles requires that all Texas auto dealers secure a surety bond in the amount of $50,000 for a 2 year period effective 10/1/2021 and the estinated rate starts from $329 for 2 year peiod based with prefered credit history. 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.
Getting Your Texas Business License or Registration
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 $329/ 2 years Apply Now Online
Call All State Bonds for a quick auto dealer bond quote or Apply Now Online, or visit us at www.allstatestatesuretybonds.com