Call us: 866.450.3412

How to Get a Dealer License in Texas in 8 Easy Steps

Related Posts

12 thoughts on “How to Get a Dealer License in Texas in 8 Easy Steps

    1. Yes, to open a used car dealership in Texas you need to carry Garage Liability Insurance with a minimum coverage of $85,000 Combined Single Limit. This insurance protects against bodily injury or property damage resulting from incidents related to dealership operations, such as accidents during test drives.
      While not legally required, many dealers also choose to carry additional coverage, such as inventory insurance, workers’ compensation, and others, to better protect their business.

      It’s also important to note that the required surety bond is not the same as insurance.

      For an even more detailed explanation, check out our free ebook guide: How to Start a Car Dealership in Texas.

    1. If you want to sell boats in Texas, you do not need a traditional Texas dealer license issued by the Texas Department of Motor Vehicles (TxDMV). Instead, boat sales are regulated by the Texas Parks & Wildlife Department (TPWD).

      To legally sell boats in Texas, you will need to apply for a Boat (Marine) Dealer/Distributor License through TPWD.
      For more details and application requirements, visit the TPWD website.

    1. No, you can’t. Each state has its own licensing requirements.
      If you plan to sell or buy vehicles in Texas, you will need to obtain a Texas dealer license that aligns with your business activities.

      Under Texas law, any individual or business that buys, sells, or exchanges more than five vehicles registered in their name within a calendar year — or sells even a single vehicle not titled in their name — must hold a valid Texas dealer license.

    1. Before applying for your dealer license, it’s essential to determine the type of vehicles you plan to sell. In Texas, different dealer licenses come with specific permissions and restrictions.
      In general,
      – Wholesale Dealer License – Allows you to sell vehicles to other licensed dealers but not directly to the public.
      – Wholesale Motor Vehicle Auction License – Permits offering vehicles for auction exclusively to licensed dealers.
      – Salvage Dealer License – Authorizes the buying, selling, repairing, or rebuilding of salvage and nonrepairable motor vehicles.
      If you intend to sell multiple types of vehicles, you may need a separate General Distinguishing Number (GDN) for each category. Some licenses, such as the Salvage Agent License, require either selecting an existing GDN or applying for one as part of the licensing process.

      For a more detailed guide, check out our free ebook, How to Start a Car Dealership in Texas, here: https://www.bryantsuretybonds.com/how-to-start-a-car-dealership-in-texas-ebook. Additionally, I recommend reviewing the Texas DMV’s eLicensing User Guide for step-by-step instructions: https://www.txdmv.gov/sites/default/files/body-files/eLICENSING-UserGuide_Independent-GDN-Licensees.pdf.

      Hope this helps, and best of luck with your dealership journey!

Leave a Reply

Your email address will not be published. Required fields are marked *


How to get bonded

  • Apply Online
    Fill out our online application form.
  • Get Approved Instantly
    You will be sent your quote in minutes.
  • Pay and ship your bond
    We offer secure payment options.
Start Your Application
Follow us: