TX motor vehicle dealer bonds.
$350 flat.

Also known as the Texas auto dealer bond or car dealer bond.

Texas requires every licensed motor vehicle dealer to file a $50,000 bond with the TxDMV to get or renew a General Distinguishing Number. Ours is $350 flat — the price you see is the checkout price, identical for every dealer. One soft credit pull that never affects your score, e-signed in 1–2 business days.

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Required for your TX dealer GDN — new applicants and renewals through the TxDMV

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Fixed amount, fixed price — $50,000 bond, $350, no quote theater

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Soft credit pull only — never a hard inquiry, never affects your score, and the price stays $350 either way

A-ratedA.M. Best carriersInstantissued the moment you pay1–3 yrterms available

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How it works

Three steps to licensed.

Your GDN is waiting on this bond. Here's the entire process — no broker phone tag:

TODAY · ONLINE

Apply once, online

Business details, owner information, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.

WITHIN 48 HOURS

Reviewed & approved

Most of these clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.

1–2 BUSINESS DAYS

E-sign & file with the TxDMV

Pay online and receive the executed dealer bond, ready to file with your GDN application. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the bond actually guarantees

Texas licenses motor vehicle dealers through the Texas Department of Motor Vehicles (TxDMV), which issues a General Distinguishing Number (GDN). The TxDMV may not issue or renew a GDN unless the dealer files a properly executed $50,000 surety bond with a surety approved by the department.

The bond is a consumer-and-public-protection guarantee: it backs the transfer of good title on every vehicle you sell and the payment of all valid bank drafts you draw to buy vehicles. If a dealer fails to deliver clear title or bounces a draft, the harmed party can recover against the bond.

It is not insurance for you — if the surety pays a claim, you repay the surety. The bond commonly runs a two-year term aligned to the GDN cycle, and Texas generally requires a separate bond for each county in which you hold a GDN. Dealers who deliver clean title and good drafts treat the bond as a license formality.

Tex. Transportation Code §503.033Under Texas Transportation Code §503.033, the TxDMV may not issue or renew a motor vehicle dealer General Distinguishing Number unless the applicant files a properly executed $50,000 surety bond with a surety approved by the department, conditioned on the transfer of good title and payment of valid bank drafts; by §503.033(i) the section does not apply to franchised motor vehicle dealers. Dealer GDNs run a two-year term and the bond must run concurrently with it; TxDMV requires a separate GDN and bond for a location outside the city limits of the original location. Confirm the amount and term on your application.

You need this bond if you're

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Applying for a TX dealer GDN — independent, franchised, wholesale, or wholesale-auction

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Renewing your GDN and your current bond is expiring or non-renewing

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Adding a county where the TxDMV ties a separate GDN and bond to the location

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Moving to Texas from another state and getting licensed here

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.

Start the application →

FAQ

Common questions.

Do I pay the $50,000?No. You pay $350. The $50,000 is the surety's maximum liability to the state and harmed buyers; it's not a deposit, and nobody holds your money.

Who requires this bond?The Texas Department of Motor Vehicles (TxDMV) requires it under Transportation Code §503.033 as a condition of a General Distinguishing Number. No active bond, no GDN.

What does the bond guarantee?That you transfer good title on the vehicles you sell and pay the valid bank drafts you draw to buy inventory. If you fail to and someone is harmed, they can claim against the bond — and if the surety pays, you repay the surety.

Is there a credit check?Yes — a quick soft credit check may apply, never a hard inquiry and no impact on your score. It's the only extra step beyond the application, and it informs approval, not price. The price stays $350 either way: credit can affect whether we approve the bond, never what it costs.

When does it renew?Texas dealer bonds commonly run a two-year cycle aligned to the GDN; we also offer 1 and 3-year terms. You'll get renewal notices 60 and 30 days before expiration, with autopay available, and the bond must stay active for your GDN to stay valid.

Related bonds

Other Texas bonds.

The TxDMV is waiting on one document.

$350 flat, short application, e-signed bond in 1–2 business days. Free until issued.

Start application

Your price$350

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