Motor vehicle dealers in the state 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, the amount of vehicles you plan to sell, and other factors. Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.

Click Here to Apply for a Motor Vehicle Dealer Bond – Free no obligation quote, easy online application. All States 

Surety Bond

  • Required by: Texas Department of Motor Vehicles
  • Minimum Bond Amount: $50,000
  • Maximum Bond Amount: Varies
  • Valid: 2 years – Renewable

The price for the bond, also known as the bond premium, is only a small fraction of the bond amount. The applicant should verify the bond amount with the oblige before applying for the bond to ensure the bond amount isTexas Motor Vehicle Dealer Bond correct. This bond guarantees the principal will abide by all Texas state laws and regulations along with the regulations outlined in the Texas Transportation Code.

To get a car dealership license in Texas, you will need to:

  1. Form a business entity. This can be a sole proprietorship, partnership, limited liability company (LLC), or corporation. You will need to register your business with the Texas Secretary of State or county clerk’s office.
  2. Obtain a Texas Motor Vehicle Dealer Bond. This is a financial guarantee that protects consumers from financial losses caused by dealer fraud or misconduct. The bond amount is $50,000.
  3. Complete a dealer education course. This course covers the laws and regulations governing motor vehicle dealers in Texas. You can find a list of approved courses  Here
  4. Submit a completed dealer license application to the TxDMV. The application can be found on the TxDMV website. You will also need to submit the following supporting documents:
    • A copy of your business entity registration
    • A copy of your dealer surety bond
    • A copy of your dealer education course completion certificate
    • Proof of a permanent business location
    • Proof of liability insurance
  5. Pay the applicable fees. The dealer license fee is $350. There is also a $700 general distinguishing number license fee and a $90 fee for each dealer license plate.

Once your application is approved, you will receive your dealer license in the mail. You will then be able to legally buy and sell used cars in Texas.

Here are some additional tips for getting a used car dealership license in Texas:

  • Start planning early. The licensing process can take several weeks or even months to complete.
  • Make sure you have all of the required documentation before you submit your application.
  • Be prepared to pay the applicable fees.
  • If you have any questions or concerns, contact the TxDMV for assistance.

How to obtain a Texas Motor Vehicle Dealer Bond

At we make it easy to obtain this surety bond. Our simple, three step process is:

  1. Complete the easy to navigate and secure online application1
  2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
  3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Texas Motor Vehicle Dealer Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license. is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, is the premier online provider of surety bonds nationwide since 2003.


Texas Motor Vehicle Dealer Bond


How to Get Your Texas Motor Vehicle Dealer Bond

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. Provide payment and your signed agreement, and then you will receive your Surety Bond!

If you have any questions, please call us at 877-654-2327.

How to Get Bonded

1. Apply Online
Using our Free & Secure Application
2. Get Your Free Quote
Applications are No-Obligation
3. Get Your Bond
Most Bonds are Approved in 1-2 Business Days

Surety Bond Experts

Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.

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