Texas Dealer BondTexas Dealer Surety Bond

How Much Does A Texas Dealer Bond Cost?

This is the question we hear the most as soon as we answer the phone.  I wish there was a simple answer for this.  However, the fact is that rates can vary greatly depending on several factors.  First, the credit rating of the owners will have the greatest impact on the premium or price paid for the surety bond.  Simply put, the better the credit rating, the cheaper the cost of the bond.  However, this is not the only factor to take in when purchasing a Texas dealer bond.  Have you had a claim in the past?  If so, and an insurance has paid out a claim, chances of you being able to obtain will be pretty slim.

A Texas dealer surety bond cost will range from $250 to $5,000 for the state mandatory 2 year term. This term cannot be more nor can it be less.  In short, an applicant with good credit and that has been in business for a few years can expect to pay between $250 and $750 for the 2 years.  Those with credit problems can probably expect to pay between $1000 and $5000 depending on how bad the personal credit is.  You cannot pay for a Texas auto dealer bond per year.  The payment must be for the full 2 year term.   Apply Now

Do I Need A Texas Dealer Bond?

The State of Texas requires all independent car dealers to get a GDN license which allows a business to buy, sell, trade certain vehicles depending on the type of license.  To ensure you apply for the correct auto dealer license, please visit the State of Texas Department of Motor Vehicles.     Apply Now

What Does My Personal Credit Have To Do With The Auto Dealer Bond Premium?

Premiums of the Texas auto dealer surety bond will be greatly based on the owners personal credit score.  This is because if a surety company has to pay out a claim, they want to make sure the applicant has a good track record of paying that debt back.  Unlike insurance, if you have a valid claim on your auto dealer bond, the insurance company will look to the applicant to repay the debt.  Untimely payments on your report will result in a higher bond premium.  Apply Now

When Does The Texas Dealer Surety Bond Expire?

Texas Department of Motor Vehicles says that all dealer bonds must start on the first of the month and expire on the last day of the previous month in 2 years.  In short, if you choose to start your bond on September 1, 2018, the bond expiration date will be August 31, 2020.  There is no way around this.   Apply Now

I Just Purchased My Texas Dealer Bond…Now What?

We will email you a copy of the executed dealer surety bond.  You will also receive the original surety bond and power of attorney via mail or FedEx (If you choose).  Once you receive your dealer bond, you will need to sign it and forward it to the Texas Department of Motor Vehicles.   Apply Now

The auto dealer bond is also known as the “MVD Bond, motor vehicle dealer bond, auto dealership bond, car dealer bond, etc.  No matter what you call them…we can write them!


For additional information, please feel free to contact us at 855-689-5106 or the Texas Independent Auto Dealers Association.

For a complete guide of the laws, regulations and statutes, please visit the TX DEALER’S AND MANUFACTURER’S VEHICLE LICENSE PLATES page.