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Used car dealers need an auto dealer bond in Texas

Used Car Dealers: Used car dealers must be licensed and bonded to operate in the state of Texas. Used car dealers must obtain a general distinguishing number (GDN) from the Texas Department of Motor Vehicles to operate legally. As part of the licensing process, a $50,000 Motor Vehicle Dealer Bond is required. We've helped hundreds of dealers in Texas get licensed and bonded, get a commitment free motor vehicle dealer bond quote today.

New/Franchised Car Dealers: New/Franchised car dealers are exempt from the licensing/bonding requirements and do not require an auto dealer bond.

Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.

Motor Vehicle Dealer Bond

Bond Amount: $50,000

Required by: Texas Department of Motor Vehicles

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State Acceptance Guarantee
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Refund within 30 days
1 year bond starts at:
*Based on credit and experience
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State acceptance guarantee
green checkmark
Refund within 30 days
*Based on credit and experience
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How much does it cost?

Our starting price for the $50,000 Texas Motor Vehicle Dealer bond is $200 and can can go up to $1500 depending on the applicant's background. ‍ The price of a Texas auto dealer bond is largely based on an applicant’s credit score. In general, the higher the credit score, the more the bond is discounted.


Texas Auto Dealer Bond FAQs

Are there other types of auto dealer bonds that I need in Texas?

Nope. The only bond you need in the state of Texas to sell cars is the $50,000 Motor Vehicle Dealer Bond we’ve listed above.

Is there a credit check required for this bond?

Yes, insurance companies typically conduct a "soft credit check" on the applicant to determine eligibility and pricing for Texas auto dealer bonds. It is important to note that this type of credit check will not have any negative impact on the individual's credit score.

What if I have bad credit?

A credit score under 650 is categorized as "poor" credit. We have established partnerships with various insurance companies that specialize in providing coverage to this market segment. If your credit score is less than ideal, please don't hesitate to contact us. We will assist you in finding the most cost-effective insurance quote by shopping around on your behalf.

How to prove that I’m bonded?

Once your dealer bond application is approved, we will send you a PDF copy of the bond via email as evidence that you are bonded.

How is the price determined?

The cost of a dealer bond in Texas depends on various factors, including the applicant's credit score, experience, and the insurance provider. The applicant's credit score is usually the most significant factor, followed by the insurance company. We partner with over 10 insurance companies, so we can offer our clients competitive rates, regardless of their credit score.