Texas — Motor Vehicle Dealer Bond
Prepare the bond for your Texas dealer license with the same care as the license application. TxDMV requires a $50,000 surety bond for most new and renewing GDN dealers, with names, addresses and dates that match its licensing rules.
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- Recorded state
- Texas
- Category
- Vehicles, titles & transportation
What this bond does
The motor vehicle dealer bond supports specified dealer obligations, including payment of valid vehicle-purchase drafts and transfer of good title. It belongs with the dealer's GDN licensing documents.
- Who needs it
- Texas independent dealers applying for or renewing a General Distinguishing Number should check their license class against TxDMV's bond rules. The department lists exceptions for franchise dealers, GDN travel trailer dealers and GDN utility trailer/semitrailer dealers.
- Who it protects
- The bond provides a recovery route for covered dealer conduct. TxDMV's manual describes a judgment-based claim process for covered damages and attorney fees. It does not describe insurance for damage to the dealership's own inventory.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- TxDMV Motor Vehicle Dealer Manual, 2026, section 3.12 (opens in a new tab)Checked October 18, 2026
Have these ready
- Identify the GDN class and whether a listed exemption applies.
- Gather the exact legal entity filing, DBA and each covered physical location.
- Confirm the license effective and expiration dates before requesting the bond.
- Review signatures, power of attorney and any rider before submitting the licensing documents.
Questions about this bond
Does every Texas vehicle dealer need this bond?
No. TxDMV's manual excludes franchise dealers, GDN travel trailer dealers and GDN utility trailer/semitrailer dealers from the stated $50,000 requirement. Confirm your actual GDN class before buying.
Is this the same as a bonded title for one vehicle?
This listing concerns the dealership's GDN obligations. It is not a title bond selected to resolve ownership documentation for an individual vehicle.
How does a claim work?
TxDMV's manual says a claimant must file a judgment assessing damages and attorney fees for an act or omission covered by the bond during the valid GDN term. Coverage and recovery depend on the facts and bond conditions; a complaint alone is not a promise of payment.
Can I use a fresh two-year bond halfway through my license?
Check the dates first. The manual says a replacement during the license term must start on or before cancellation of the old bond and expire with the existing license. A mismatched term requires correction.