Motor Vehicle Dealer Bond

Texas Motor Vehicle Dealer Bond

File the TxDMV $50,000 dealer surety before your GDN issues

Texas motor vehicle dealers must purchase a $50,000 surety bond approved by TxDMV under Tex. Transp. Code § 503.033 before the department issues or renews a general distinguishing number (or wholesale auction GDN).

Overview

What Is a Texas Motor Vehicle Dealer Bond?

A Texas motor vehicle dealer bond is a three-party surety obligation that protects consumers when a licensed dealer fails to honor bank drafts for vehicle purchases or fails to transfer good title.

Key Provisions
  • Guarantees compliance with Tex. Transp. Code § 503.033
  • Protects the obligee named on the Texas bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under Tex. Transp. Code § 503.033 up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
Texas Department of Motor Vehicles
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

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

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.

Scope of the Obligation
  • Comply with Tex. Transp. Code § 503.033
  • Satisfy Texas Department of Motor Vehicles filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Any business seeking or renewing a Texas TxDMV motor vehicle dealer or wholesale motor vehicle auction general distinguishing number needs this bond.

Who Is Required to File
  • Applicants required by Texas Department of Motor Vehicles (TxDMV)
  • Texas businesses renewing or expanding licensed activity
  • Out-of-state firms filing into Texas markets
Requirements

What You Need to Apply

Purchase a properly executed $50,000 surety bond on a TxDMV-approved form with an authorized surety, then submit proof with your eLICENSING application or renewal.

Required Documentation
  1. Legal entity name matching the license or filing
  2. Bond amount: $50,000 for motor vehicle dealer and wholesale motor vehicle auction general distinguishing numbers (raised from the prior $25,000 schedule — confirm current TxDMV form)
  3. Texas obligee form or statute citation
  4. Owner or officer identification for underwriting
Filing

How this filing works

  1. 01

    Confirm the Texas requirement

    Share your license type, court order, or obligee form and the exact penal sum required by Texas Department of Motor Vehicles (TxDMV).

  2. 02

    Underwrite and price

    We review credit and filing details, then quote premium options through licensed surety markets.

  3. 03

    Issue and file

    Once approved, we issue the bond for delivery to Texas Department of Motor Vehicles or for your Texas filing package.

FAQ

Frequently Asked Questions

What is the required amount for a Texas motor vehicle dealer bond?

The amount is $50,000 for motor vehicle dealer and wholesale motor vehicle auction general distinguishing numbers (raised from the prior $25,000 schedule — confirm current TxDMV form), as set under Tex. Transp. Code § 503.033 and confirmed with Texas Department of Motor Vehicles (TxDMV).

Who is the obligee on a Texas motor vehicle dealer bond?

The obligee is typically Texas Department of Motor Vehicles. Always match the exact name on the Texas form.

How long does it take to get the bond?

Many Texas filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.

Does bad credit prevent approval?

Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.

How do I renew the bond?

Most bonds renew on the term shown (1 Year). Keep continuity so your Texas license or filing does not lapse.

Authority Resources

Texas Department of Motor Vehicles (TxDMV)

txdmv.gov

Next step

Ready to file this bond?

We’ll match the requirement and route the application.

Apply for this bond

Or call (877) 477-7578