What is Texas Auto Dealer Bond?

The State of Texas requires all operational car dealerships to obtain a bond of at least $50,000 in order to run their business in the state. This law pertains to both new and used car dealerships. The Texas Auto Dealer Bond is essentially a contract that ensures a secure and reliable transaction between the customer and the dealership. The Auto Dealer Surety Bond exists to protect the customer from fraud and helps establish a regulatory framework for both dealers and consumers.

Within the contract, there are three parties involved: the principal, the obligee and the surety. For our purposes, the principal is the auto dealership; the obligee is the party that requires the bond (in this case, the Texas Department of Transportation), and the Surety is the insurance company that backs the actual bond.

Bonds are issued for a two-year term and must be renewed at the end of each term. Each bond is issued with an expiration date that falls two years after the issuing date.

You can search for the bond you need in the table below. If the one you are looking for is not there, do not worry. Call us at (866) 450-3412 and we will help you get bonded.

Find the Bond You Need

The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".

Freight Broker Bond (BMC-84) FMCSA N/A Apply Now
Agricultural (Non-Livestock) Bond Texas Department of Agriculture Child and Adult Care Food Program Bond Apply Now
Contractor License (No P&P Language) Bond City of Abilene Building Contractor's Bond (City of Abilene) Apply Now
Contractor License Performance & Payment (Local) Bond City of Galveston City of Galveston, TX -(Local) Payment & Performan Apply Now
Contractor License Performance & Payment (Local) Bond City of Olmos Park General Contractor's Apply Now
Contractor License Performance & Payment (Local) Bond AEP Texas Central Company Pole Attachement Apply Now
Contractor License Performance & Payment (Local) Bond City of El Paso Development Services Blanket Building and Construc Apply Now
Contractor License Performance & Payment (Local) Bond City of Galveston General Contractor License Bond Apply Now
Contractor License Performance & Payment (Local) Bond City of El Paso - Development Services Dept Blanket Building & Construction Bond Apply Now
Contractor License Performance & Payment (Local) Bond City of Sonora City of Sonora Electrical Contractor Bond Apply Now
Contractor License Performance & Payment (Local) Bond County of El Paso Blanket Building & Construction Bond Apply Now
Contractor License Performance & Payment (Local) Bond City of Kirby Home Improvement Contractor's/Salesman Bond Apply Now
Contractor License Performance & Payment (Local) Bond City of Midland Contractors Bond (City of Midland, TX) Apply Now
Contractor License Performance & Payment (Local) Bond City of Abilene Building Contractor's Bond (City of Abilene) Apply Now
Contractor License Performance & Payment (Local) Bond Town of Horizon City Blanket Building and Construction Bond (Town of Ho Apply Now
Contractor License Performance & Payment (Local) Bond City of Dallas Paving Bond (City of Dallas) Apply Now
Contractor License Performance & Payment (State) Bond City of El Paso Development Services Dept Blanket Building & Const Apply Now
Contractor License Performance & Payment (State) Bond State of Texas Service Contract Provider Surety Apply Now
Excess Weight, Other Highway & Street Permit Bond Dept. of Motor Vehciles, Motor Carrier Division Over Axle and Over Gross Weight Tolerance Permit B Apply Now
Collection Agency Bond Secretary of State, Statutory Documents Section Third Party Debt Collector Apply Now
Collection Agency Bond Texas Department of Banking Private Child Support Enforcement Agencies Bond Apply Now
Debt Consolidators Bond Secretary of State Credit Services Organization Apply Now
Debt Consolidators Bond The Office of Consumer Credit Consumer Debt Management Services Apply Now
Insurance Adjusters Bond Texas Department of Insurance Public Insurance Adjuster Bond Apply Now
Insurance Agents/Brokers Bond Department of Insurance Insurance Agency Apply Now
Insurance Agents/Brokers Bond Texas Department of Insurance Discount Health Care Program Operator Apply Now
Mortgage Broker (1st & 2nd Mortgages) Bond Dept of Savings and Mortgage Lending Residential Mortgage Loan Servicer Apply Now
Mortgage Lender/Banker (1st & 2nd Mort.) Bond Dept of Savings and Mortgage Lending Mortgage Lender Apply Now
Small Loan Companies Bond STATE OF TEXAS CREDIT SERVICES ORGANIZATION SURETY Apply Now
Title Insurance Agents & Escrow Officers Bond Texas Department of Insurance Texas Escrow Officers Schedule Bond Apply Now
Title Insurance Agents & Escrow Officers Bond Department of Insurance Title Insurance Agent's Direct Operation's Bond Apply Now
Defective Title Bond Texas Department of Motor Vehicles Certificate of Title Bond Apply Now
Auto & Mobile Home Dealers (New & Used) Bond Department of Transportation - Motor Vehicle Divis Motor Vehicle Dealer Apply Now
Motor Vehicle (Non-Dealer, Not Listed) Bond Dept of Housing and Conmmunity Affairs - MHD Continuous Manufactured Housing License Apply Now
Sport Permits Bond Texas Department of Licensing and Regulation Combative Sports Promoter Bond Apply Now
Sport Permits Bond Secretary of State Athlete Agent Apply Now
Health Spas/Health Clubs Bond Secretary of State Health Spa Apply Now
Employment Agencies Bond Texas Department of Licensing and Regulation PERSONNEL EMPLOYMENT SERVICES SURETY Apply Now
Employment Agencies Bond TX Dept of Licesning and Regulation Staff Leasing Service Apply Now
Medicare & Medicaid (Durable Equip, State) Bond Medicaid & Health Partnership Medicaid Provider Bond Apply Now
Nursing Homes Bond Texas Department of Aging & Disability Services Nursing Homes Apply Now
Professional Licenses (All Other) Bond Texas Depertment of Licensing and Regulation TALENT AGENCY BOND Apply Now
Professional Licenses (All Other) Bond Texas Department of Health Subscription Program Apply Now
Professional Licenses (All Other) Bond SECRETARY OF STATE - Statutory Documents Section Business Opportunity Seller Apply Now
Professional Licenses (All Other) Bond Department of Licensing and Regulation For-Profit Legal Services Contracts Apply Now
Professional Licenses (All Other) Bond Texas Real Estate Commission Residential Service Company Bond Apply Now
Professional Licenses (All Other) Bond CITY OF PLACIOS Vendor's Bond Apply Now
Professional Licenses (All Other) Bond Texas Department of Insurance Discount Health Care Program Operator Bond Apply Now
Professional Licenses (All Other) Bond Secretary of State Athlete Agent Financial Services Bond Apply Now
Professional Licenses (All Other) Bond Department of Transportation Outdoor Advertisers Bond Apply Now
Professional Licenses (All Other) Bond City of Irving City of Irving Public Works Restoration Bond Apply Now
Professional Licenses (All Other) Bond City of Copperas Cove, Texas (City of Copperas Cove, TX) Solicitation Bond Apply Now
Professional Licenses (All Other) Bond Secretary of State Registrations Unit Veterans Organization Solicitor's Bond Apply Now
Professional Licenses (All Other) Bond Texas Department of Insurance-Financial Regulation Navigator Entity Bond Apply Now
Schools (All) Bond Texas Education Agency Driver Education School Apply Now
Schools (All) Bond Texas Real Estate Commission Real Estate School Apply Now
Schools (All) Bond TEXAS EDUCATION AGENCY Driver Education School Bond Apply Now
Alcohol (Manufacturers, Warehouses, Wholesalers) Bond Texas Alcoholic Beverage Commission Liquor Tax Apply Now
Alcohol (Manufacturers, Warehouses, Wholesalers) Bond Texas Department of Agriculture Grain Warehouse Schedule D- Operator Bond Apply Now
Alcohol (Manufacturers, Warehouses, Wholesalers) Bond Texas Alcoholic Beverage Commission Contract/Alternating Resident and Non Resident Bre Apply Now
Alcohol (Retailers) Bond Texas Comptroller of Public Accounts Gross Receipts Tax Bond Apply Now
Alcohol (Retailers) Bond Texas Comptroller of Public Accounts Sales Tax Bond Apply Now
Alcohol (All Others) Bond Texas Alcoholic Beverage Commission Conduct Surety Bond Apply Now
Alcohol (All Others) Bond Texas Alcoholic Beverage Commission TABC - Performance Apply Now
Alcohol (All Others) Bond Texas Alcoholic Beverage Commission Tax Bond Apply Now
Fuel Tax (All Others, Sellers & Users) Bond Comptroller of Public Accounts Motor Fuels Tax (Diesel) Continuous Apply Now
Fuel Tax (All Others, Sellers & Users) Bond Comptroller of Public Accounts Motor Fuels Tax (Gasoline) Continuous Apply Now
Fuel Tax (All Others, Sellers & Users) Bond Comptroller of Public Accounts International Fuel Tax License Bond Apply Now
Miscellaneous Taxes Bond TX Dept of Licensing and Regulation Combative Sports Bond For Gross Receipts Tax Apply Now
Sales, Use & Consumer Tax Bond Dept. of Licensing Continuous Bond of Seller (Sales Tax) Apply Now
Sales, Use & Consumer Tax Bond Texas State Comptroller Customs Broker Apply Now
Utility Deposit Bond City of Houston Utility Deposit Bond Apply Now
Utility Deposit Bond City of Dallas Water Department Guaranty Bond Apply Now
Utility Deposit Bond Atmos Energy Corporation Atmos Energy Utility Deposit Bond Apply Now
Utility Deposit Bond Texas New Mexico Power Company Texas-New Mexico Power Company Utility Bond Apply Now
Utility Deposit Bond CenterPoint Energy Centerpoint Energy Utility Bond Apply Now
Utility Deposit Bond City of Chillicothe-Chillicothe Municipal Utilitie Utility Payment Bond (Chillicothe Municipal) Apply Now
Lottery Bond Texas Lottery Commission Bingo Prize Fees Apply Now
Money Transmitter Bond Texas Banking Commissioner Money Services Bond Apply Now
Telemarketing/Phone Solicitor Bond Office of Attorney General Telephone Solicitation Apply Now
Telemarketing/Phone Solicitor Bond Charitable Trust Section Consumer Protection Divis Commercial Telephone Solicitor Apply Now
Telemarketing/Phone Solicitor Bond Texas - Office of Attorney General Public Safety Organization, Independent Promoter Apply Now
Warranty Bond State of Texas Service Contract Provider Apply Now

How Much Does Texas Dealer Bond Cost?

The pricing of a Texas Car Dealer Bond varies depending on personal credit. To calculate what a surety will cost your business, you can use our cost calculator and obtain a free quote.

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How to Get Licensed:

Getting a surety bond is only one of the Texas Department of Motor Vehicles’ license requirements for auto dealers.

Here are a number of other steps you’ll need to take to complete the application process:

  • Choose the type of dealer license you need: The licensing type depends on the kind of auto business you operate
    • For most types of vehicles, you’ll need an independent GDN license (GDN licenses differ for travel trailers, semi trailers, motorcycles, wholesale dealers, motor vehicles)
    • For selling new cars, you’ll also have to get a franchise license
  • Secure your business entity documents
  • Provide proof of an established and permanent business location, with a registered phone number
  • Get an Employer Identification Number (EIN) from the IRS (if applicable)
  • Provide personal information and ID for every owner, officer or general partner
  • Apply online for your license via the Texas ELicensing Portal, attaching all required documents
  • Pay the required license costs: $700 for one GDN license and $90 for each Texas dealer license plate
  • Submit your application and obtain your dealer license

Submit all necessary documents to the Texas DMV eLicensing portal. In 2017, the Texas DMV replaced most of their paper document collection with an online portal.

You have to renew your Texas motor vehicle dealer license every two years to continue your operations. You’ll get a renewal notice from the Texas DMV 75-90 days before your license expires. Don’t forget you’ll need to renew your dealer bond at that time as well.

How Can I Get a Texas Dealer Bond?

The application process is easy! Research licensed surety bond insurance companies and fill out their online application. Typically, you will need to submit the following information: business name, business location, point of contact, bond amount and bond date. The surety bond company will calculate a premium according to the information you submit so make sure to submit all the correct information regarding your credit score, legal history and any other important details.

Start your online application here and receive a free quote from us in minutes. Our bonds can be printed online or issued by mail within 24 hours. Once you are approved and have paid the premium, you must hand sign the bond before you can submit the paperwork to the state.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

Can I get a Texas Dealer Bond with Bad Credit?

Even if you have a low credit score, tax liens, or even bankruptcy, you can still get a Texas motor vehicle dealer bond with Bryant Surety Bonds.

Applicants with poor credit or other financial issues are typically considered high risk by sureties and are offered higher premiums. Our Bad Credit Program is designed to help you get bonded and get on with your business.

Who Should Get a Texas Dealer Bond?

Under Texas State Laws, all auto dealerships are required to get a Texas Dealer Bond to operate. However, some of the Texas MVD Bond Requirements have changed over the past year.

As of September 1st 2021, Texas Transportation Code Chapter 503 states that all independent mobility motor vehicle dealers in possession of a general distinguishing number must obtain a $50,000 Bond. Prior to September 1st 2021, auto dealerships were able to secure one at $25,000.

The Texas Motor Vehicle Division has decided that in order to better protect consumers against dealers who abused the temporary registration tags, it was necessary to increase the bond cost. However, the state of Texas deemed that this increased bond requirement does not apply to certain dealerships: trailer/semi trailer and non-motorized travel trailers.

City Requirements

We have dedicated pages for several cities in Texas. Navigate to yours if you want to find out more about its specific requirements.

Call us at (866)-450-3412 anytime to speak to one of our surety bond professionals. They can help you with the application process and answer all your questions regarding getting bonded in Texas.

Further Reading


About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.