National Independent Automobile Dealers Association
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Dealer Bond And Licensing Information » Texas


A $25,000 surety is required for motor vehicle, motorcycle and wholesale auction dealers for the licensed period unless the dealer is a franchised dealer or trailer dealer.

Dealer License

Any person who is engaged in the business of buying, selling or exchanging motor vehicles, motorcycles, travel trailers or trailers/semi-trailers is required to obtain a dealer license. The Motor Vehicle Di­vision assigns a current valid, general distinguishing number for locations in each city municipality. The main exception is for a person who sells fewer than 5 vehicles in a calendar year, provided the vehicles are titled and registered in such person's name.

New Franchise Dealer License Fees: $175.00 franchise fee plus $500.00 for each required general dis­tinguishing number (motor vehicle, motor cycle, travel trailer, trailer/semi-trailer, wholesale and wholesale auction). Annual renewal fee is determined by number of cars sold in a calendar year ($175.00 - $750.00 for license plus $200.00 for each required general distinguishing number).

Used Car Dealer License Fee: $500.00
Used Car Dealer Renewal Fee: $200.00 per year for each general distinguishing number.

Contact the Texas Independent Automobile Dealers Association for additional information.