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Texas Auto Dealer Bonds

Texas Auto Dealer bond does not protect the car dealer from any lawsuits, but it protects the consumer from fraud or misrepresentation by the auto dealer. Also known as a motor vehicle dealer’s bond, it guarantees compliance by the licensed dealer with state laws. Texas auto dealer bond is set at $50,000 and for a 2 year period. Auto Dealers are required to obtain a motor vehicle surety bond which is also known as DMV bond. Auto dealer is required by the State Motor Vehicle Departments to obtain a dealership license and to insure the dealer comply with all State laws to protect the consumer. Texas Dealer Bonds Rate as low as $325 /2 Years*

We are Located in Houston, Texas but we serve all auto dealers in Dallas, Fort Worth, Austin, El Paso, San Antonio, Plano, Amarillo, Galveston, Waco, Corpus Christi, Brownsville and all throughout Texas.

Get a Free Auto Dealer Bond Quote Today:

All Dealer Bonds are Issued and Emailed on the Same Day.
Apply Online For Faster Approval

Apply Online For Faster Approval

What is an auto dealer surety bond and why do you need it?

Rates as low as $325 for 2 Years

  • Our Message is Short
  • We offer one of the lowest dealer bond rates since 1988
  • We issued 1000’s for dealer bonds in the past 20 years
  • We insure 100’s for dealerships in the State of  Texas
  • Call our agents for any questions @ 713-589-8699 or Toll 888-867-1944
  • Apply online for a free quote
  • Most auto dealer bonds are issued on the same day.
  • We also offer Texas Auto Dealer Insurance, Rates starts from $1385/year for $100k liability insurance. Protect your business from any lawsuits/claims that might arise from running your dealership.

Texas Auto Dealer Bonds?

The Texas Department of Motor Vehicles requires that all Texas auto dealers secure a surety bond in the amount of $50,000. This is a licensing requirement in order to engage in vehicle sales in the state of Texas (see more information on Texas license requirements). 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. The cost varies based on the applicant’s credit history and the rate can start from around 1% and up from the bond amount needed for a two year period. As required by the state of Texas, these auto dealer surety bonds are issued for a two-year term, expire on the last day of the month. All-State Surety Bonds is a licensed bonding agency in Texas and offers exceptional rates for Texas Motor Vehicle Dealer Bonds.

Texas Auto Dealer License Requirements?

  • To regulate the Auto Dealer trade, the state subjects Texas Automobile Dealer to many legal restrictions and requirements. For a new Dealer license in Texas, the first step is to obtain a General Distinguishing Number (GDN). This requires, among other things, a permanent place of business, a business Signage, enough space to display five vehicles the dealer intent to sell, etc…
  • You’ll need a GDN whether you sell new cars or used them. If you also sell motorcycles. RV’s or other trailers, you’ll need separate GDN for each class of vehicle.
  • Each original GDN costs $800, and $400 to renew every 2 years in Texas.

How to obtain a Texas Dealer License?

Forms and Applications for Texas auto dealer license can be found on the TXDMV.gov , see below links

  • Auto Dealer Overview Instructions
  • Application for New Dealer License GDN
  • Instructions for completing the dealer license application
  • An application to amend Business Entity
  • Payment and mailing instructions

Where to Apply or Renew a Texas Dealer License?

To contact the Motor Vehicle Division’s licensing department, you may write to the following address:

Texas Department of Transportation
Motor Vehicle Division
Licensing Section
P.O. Box 2293
Austin, TX 78768-2293

Phone: (877) 366-8887 or (512) 416-4800
Fax: (512) 416-4893

We are located in Houston, Texas since 1988 but we serve all auto dealers in the whole State of Texas and cities like Dallas, Fort Worth, Austin, El Paso, San Antonio, Plano, Amarillo, Galveston, Kingwood, Woodlands, Texas City, Waco, Corpus Christi, Brownsville and more.

*All auto dealer bond rates shown above are based on preferred credit history.