What Is a Texas Motor Vehicle Dealer Bond?
A Texas motor vehicle dealer bond is a $50,000 surety bond required by the Texas Department of Motor Vehicles (TxDMV) for anyone applying for or renewing a dealer license.
It’s not insurance for you — it’s a financial guarantee to the state and consumers that you’ll operate your dealership in compliance with Texas law. If a customer suffers a financial loss due to your dealership’s misconduct or failure to follow state regulations, a claim can be filed against the bond.
Who Needs This Bond?
Any individual or business applying for a Texas dealer license, including:
- Independent used car dealers
- New car franchise dealers
- Wholesale dealers
- Motorcycle dealers
- Trailer and RV dealers
How Much Does It Cost?
You don’t pay the full $50,000. You pay a premium every 2 years — a small percentage of the bond amount — based on your credit profile. Most dealers pay between $500 and $1,500 every 2 years.
| Credit Profile | Estimated 2-Year Cost |
| Good (700+) | $500 – $750 |
| Fair (600–699) | $750 – $1,250 |
| Below 600 | $1,250 – $1,500+ |
Rates vary by provider. Shopping around at renewal can save you hundreds.
Frequently Asked Questions
How long does the bond last?
The bond must be renewed every 2 years when you renew your dealer license with TxDMV.
Can I get bonded with bad credit?
Yes. Coverage is available regardless of credit history. Your premium will be higher, but you can still get bonded and licensed.
How fast can I get my bond?
Most applicants receive their bond certificate the same day. In many cases it’s instant.
What happens if I don’t renew on time?
Your dealer license can be suspended if your bond lapses. TxDMV requires an active bond at all times. Don’t wait until the last minute to renew.
Do I need a separate bond for each location?
Generally yes — each licensed dealer location requires its own bond. Check with TxDMV for your specific situation.
Ready to Get Bonded?
Get your $50,000 Texas Motor Vehicle Dealer Bond in minutes. No hassle, competitive rates, same-day certificates.
You’ll be taken to our bond portal. Search “Motor Vehicle Dealer” to start your application.