Auto Dealer License Guide and Dealer Bond Cost

Motor Vehile Dealer Bonds and Licensing

Motor vehicle dealers are required to post a Texas Motor Vehicle Dealer Bond as part of the process to license the dealership. The amount of the bond depends on what type of vehicles are to be sold and the State you are doing business in. Rates for the dealer bond vary and depend on the application credit history and cost start from $325 for 2 years and up.

Texas Dealer License Requirments

Required by: Texas Department of Motor Vehicles

• Minimum Bond Amount: $50,000
• Valid: 2 years – Renewable
• Place of Business
• Acceptable credit history
• Visit Texas DMV Dealer Licensing for more Information

Get a Free Auto Dealer Bond Quote:

Apply Online For Faster Approval

• We offer one of the lowest dealer bond rates nationwide since 1988
• Call our agents for any questions @ 713-785-2138 or Toll 800-374-9227
• We also offer Texas Auto Dealer Liability Insurance, Rates starts from $1485/year for $100k Limit.
• Protect your business from any lawsuits/claims that might arise from running your dealership.

Licensing Steps and Procedure

All State Bonds is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.

State licensing fees and requirements:

• Motor Vehicle Dealer Bond
• License application
• Supporting application documents
• Proof of business location
• Employer identification number
• Certificate of Incorporation
• $700 license fee

This bond guarantees the principal will abide by all Texas state laws and regulations along with the regulations outlined in the Texas Transportation Code.

All licensing fees are required by the obligee, not the surety company.

The state of Texas requires all dealers complete a pre-licensing education course to receive their license.

Visit https://texasdealereducation.com/) to easily find the education you need.

For more licensing information, visit Texas’s official website.

How to apply for a Texas Motor Vehicle Dealer Bond

Click Here to Apply for a Motor Vehicle Dealer Bond – Free no obligation quote, easy to navigate online application. Usually within 1 business day and agent from Surety1 will provide you with a firm quote. Then you will sign some paperwork, may payment and your bond will be delivered. Overnight delivery is available.

All State Bonds has been providing Texas surety bonds since 1988. Representing over a dozen carriers and can get the bond you need at a reasonable and affordable price, fast.