Texas Motor Vehicle Dealer Bond: Fast Approval from $225
Secure your 2-year, $50,000 Motor Vehicle Dealer Bond with instant approval and unbeatable rates. Fast, simple, and reliable services trusted by Texas dealerships.
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What Is a Texas Auto Dealer Bond?
A Texas Auto Dealer Bond is a $50,000 surety bond required for independent auto dealerships. It ensures dealers follow licensing and state laws. The bond also protects consumers from fraud and unethical practices.
This bond is valid for two years and mandatory for most motor vehicle dealers in Texas. It does not apply to franchised dealers.
Why Texas Requires a Dealer Bond
The Texas Department of Motor Vehicles (TxDMV) requires a $50,000 auto dealer bond for independent dealerships. This bond ensures motor vehicle dealers follow state laws and ethical business practices. Without it, a dealership can’t get or keep a state license.
Texas dealers must secure this bond for legal operation. If a dealership sells new vehicles, it also needs a separate franchise dealer license.
The dealership bond doesn’t protect the dealer. It protects consumers. If a dealer violates the laws, the bond provides financial protection for consumers.
By requiring a dealer bond, Texas helps keep the auto market fair and trustworthy.
Who Needs a Texas Auto Dealer Bond?
Any independent motor vehicle dealership in Texas needs a dealer surety bond. It’s required to obtain a Texas motor vehicle dealer license, known as a General Distinguishing Number (GDN).
The GDN is a unique identifier assigned to licensed dealers by the TxDMV. With this license and bond, you can legally sell, buy, or exchange vehicles in the state of Texas.
Dealerships selling new vehicles must also get a separate franchise dealer license. The Texas DMV Motor Vehicle Division (MVD) issues this license.
Dealers who need this bond include:
- Independent motor vehicle dealers
- Wholesale motor vehicle dealers
- Motorcycle dealers
- Recreational vehicle (RV) dealers
- Auction motor vehicle dealers
- Franchise dealers (for used vehicles)
What Does a Dealer Surety Bond Cover?
A dealer surety bond is like a safety net for your dealership. It keeps your business compliant and legally protected. Without it, you risk penalties or losing your Texas dealer license.
Here’s what a dealership bond covers:
- State Law Compliance: Ensures you follow Texas laws and avoid fines.
- Licensing Violations: Protects your business if you violate dealer licensing rules.
- Consumer Protection: Covers claims if you commit fraud or don’t meet your obligations.
- Unpaid Fees and Taxes: Pays any fees or taxes you owe to the state.
- Vehicle Title Issues: Provides relief if you fail to deliver a valid title.
- Legal Judgments: It pays damages if a customer sues you and wins.
- Odometer Tampering: Protects you if someone alters a vehicle’s mileage.
- Failure to Honor Warranties: Covers claims when you don’t fulfill a warranty.
- Unethical Finance Practices: Protects customers from shady financing deals.
- Failure to Report Sales: Covers penalties if you don’t report sales to the state.
How to Get an Auto Dealer Surety Bond in Texas?
Get your Texas motor vehicle bond in three easy steps – Fast, Simple, Secure!
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How Much Does an Dealer Bond Cost in Texas?
The cost of an auto dealer bond in Texas depends on your credit score.
- If your credit is excellent (650+), rates start as low as $225 for a 2-year, $50,000 bond.
- Our highest standard rate is $1,050 for the same bond.
If your credit isn’t perfect, don’t worry—we’ll still find you the lowest rate possible.
At TMD, we work with top surety companies to get you the best rates, no matter your credit situation. Get approved fast and start your dealership confidently!
Credit Score +650
Instant Approval!
Instant Issue!
Credit Score <650
Same Day Approval!
Emailed Directly!
Why Trust TMD Surety Bonds?
Since 2011, TMD Surety Bonds has helped thousands of Texas dealers get bonded. We’re local experts specializing in fast approvals and upfront pricing—no hidden fees.
Got great credit? Enjoy instant approval with a soft credit check. Not perfect? No problem. We’ll still find you the lowest rate and issue your bond the same day.
Our clients trust us because we deliver what we promise: reliable service, clear pricing, and no surprises.
- Local Expertise: We know Texas dealer requirements inside and out.
- Quick Turnaround: Get approved and bonded within hours.
- Transparent Pricing: Know your costs upfront—no hidden charges.
- Credit-Friendly: We protect your credit with soft inquiries.
- Best Rates: We partner with top surety companies to offer the lowest rates.
Texas Auto Dealer Bond FAQ
A surety bond protects your customers and the state from unethical practices. It guarantees you’ll follow the laws and fulfill your obligations.
If you don’t, the bond compensates those affected. This requirement helps maintain trust in your dealership.
A Texas auto dealer bond protects your customers and the state by ensuring you follow the law.
The bond involves three key parties:
- Obligee: The state of Texas requires the bond.
- Principal (the dealership): You’re responsible for following state laws when selling vehicles.
- Surety Company: They issue the bond and guarantee you’ll meet your obligations.
Here’s how it works:
- The bond holds you accountable and protects everyone involved.
- The surety company pays the affected party if someone makes a valid claim against your bond.
- You’re responsible for repaying the surety for any claims it covers.
To get an auto dealer bond in Texas, you must:
- Be licensed to sell vehicles in Texas.
- Meet the bond amount required for your type of dealership (usually a two-year $50,000 bond).
- Maintain the bond throughout your license term.
An auto dealer bond must last for two years in Texas. You’ll need to renew your bond before it expires to keep your business operating legally.
If you don’t, you risk losing your dealer GDN license.
Yes, you can still get a Texas dealer bond with bad credit. We work with top surety companies to find you the best possible rate, even if your credit isn’t perfect.
While you might pay more, we’ll ensure you get bonded and stay compliant.
You can get your Texas dealer bond fast—usually within the same day.
Our instant approval and quick processing make the bonding process easy. It will keep your car dealer business moving.
Renew your Texas motor vehicle dealer bond before it expires. Most bonds last for two years.
You can renew your bond 90 days before the expiration date to avoid disruptions in your business. If your bond lapses, you could lose your auto dealer license in Texas.
Renewing your bond is simple with TMD. We email a notice before your expiration date.
You can conveniently pay securely online. Then, we will email your renewed bond.
Keep your dealership compliant by staying on top of your bond renewal!
If you lose your Texas dealer surety bond paperwork, don’t panic. Contact your surety provider, and they can quickly send you a replacement copy.
You’ll stay compliant, and there’s no need to worry about delays in your business.
Need an AUTO DEALER BOND? Have Questions?
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