Car Dealer Bond is typically called an MVD Bond, or a Motor Vehicle Surety Bond. Auto dealer surety bond is not an insurance policy, it does not protect the auto dealer from any losses, but it does protect the consumer from any wrongdoing or wrong actions by the dealer. Most states require auto dealers to carry a surety bond, which is a guarantee, in an amount and for a period that coincides with the dealer license which varies depending on the State the dealer is doing business in. The auto dealer surety bond ensures that the auto dealer operates according to the state rules and guidelines. We serve the State of Texas, California, Florida, New Mexico, Alabama, Louisiana, Arkansas, Georgia, Kansas, Ohio, Oklahoma, Tennessee, and 25 other Sates.
All State Bonds, Inc. offers used car dealer bonds at low and affordable rates and with a simplified underwriting process so you can obtain your dealer bond on the same day. See Sample Dealer Bond Rates by State.
- Texas $50K Auto Dealer Bond rate start from $250/2 years* Click here to Apply
Motor Vehicle Dealer License Requirments
A GDN is the basic dealer license that allows a person to buy, sell or exchange the type of used vehicle for which the GDN is issued. GDN licenses are divided into several categories. When applying for license, you must select one of the independent license types on the application. If you wish to have multiple types, you may submit multiple applications.
Independent Motor Vehicle – May buy, sell, or exchange any type of used cars, trucks, motor homes, and neighborhood vehicles. May buy, sell, repair, or rebuild salvage motor vehicles and nonrepairable motor vehicles. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on motor vehicles only. Must provide a bond.
Independent Motorcycle – May buy, sell, or exchange any type of used motorcycles, motor scooters or ATVs. May buy, sell, repair, or rebuild salvage motor vehicles and nonrepairable motor vehicles. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on motorcycles, motor scooters or ATVs only. Must provide a bond.
Travel Trailer – May buy, sell, or exchange used travel trailers. May buy, sell, repair, or rebuild salvage motor vehicles and nonrepairable motor vehicles. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on travel trailers only. Exempt from the security requirement.
Trailer/Semitrailer – May buy, sell, or exchange new or used utility trailers and/or semitrailers. May buy, sell, repair, or rebuild salvage motor vehicles and nonrepairable motor vehicles. May use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on trailers/semitrailers only. Exempt from the security requirement.
Wholesale Dealers – May sell or exchange vehicles only with other licensed dealers. Are NOT required to have a five-vehicle display area. May NOT sell vehicles to retail purchasers. Wholesale vehicle dealers may buy, sell, or exchange used vehicles, including motor vehicles, motorcycles, and travel trailers. May buy, sell, or exchange new or used trailers and/or semitrailers. May use temporary tags and metal dealer license plates. Must provide a bond.
Independent Mobility Motor Vehicle Dealer License – Allows a dealer to offer to sell new mobility motor vehicles. A “mobility motor vehicle” is a motor vehicle designed and equipped to transport a person with a disability.
What do I need to get a dealer license in Texas?
- 7 Steps to Obtain a Texas Dealer License (General Distinguishing Number) …
- Dealer Educational Course.
- Business Building With Sign and Display Lot.
- Employer Identification Number (EIN)
- Register Business Name with Texas Secretary of State or County.
- Dealer Surety Bond.
Used Car Dealer Bond Requirements by Different States.
Apply for a used auto dealer bond same day pre-approval with no obligation to buy. All pre-approvals are subject to a credit check.