Motor Vehicle Dealer Bond
TxDMV $50,000 dealer surety before your GDN issues
Independent and wholesale motor vehicle dealers file a $50,000 surety bond with TxDMV under Tex. Transp. Code § 503.033 before the department issues or renews a general distinguishing number (GDN). Franchised dealers are generally exempt from this bond requirement.
You are applying for this bond — opens in a new window.
The Texas motor vehicle dealer bond is the $50,000 surety TxDMV requires before issuing or renewing a general distinguishing number for independent or wholesale motor vehicle dealers under Tex. Transp. Code § 503.033.
The surety bond guarantees that the principal will perform the duties required under Tex. Transp. Code § 503.033 up to the penal sum.
A claim may arise if the principal fails to comply with the bonded Texas obligation or causes covered loss to the obligee or protected parties.
If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.
Amount, premium, term, and the authority that requires this filing.
Independent and wholesale dealers — not franchised dealers, who are generally exempt from the bond under Texas law.
Purchase a $50,000 surety bond on a TxDMV-approved form from an authorized surety, then file proof with your eLICENSING dealer application or renewal.
Match independent or wholesale dealer licensing — not franchised dealer (generally bond-exempt).
Use Apply on this page for the Texas Motor Vehicle Dealer Propeller class. Underwriting confirms the $50,000 penal sum.
Submit the executed bond with your eLICENSING dealer application or renewal so TxDMV can issue the GDN.
Tex. Transp. Code § 503.033 requires $50,000 for motor vehicle dealer and wholesale motor vehicle auction general distinguishing numbers.
Franchised motor vehicle dealers are generally exempt from the dealer bond requirement in Texas. Independent and wholesale dealers file the $50,000 surety.
Texas Department of Motor Vehicles (TxDMV).
Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.
Most bonds renew on the term shown (1 Year). Keep continuity so your Texas license or filing does not lapse.
Also need coverage?
Need more than a bond? Through the same agency desk we can discuss commercial coverage for the whole business.