Any person who wants to engage in the business of buying, selling or exchanging motor vehicles as a dealer in the state of Texas needs to apply for a Texas auto dealer license.
On the application they will receive a distinguishing number issued by the Motor Vehicles Division. This is popularly referred to as GDN (General Distinguishing Number). If the person wants to sell new motor vehicles, they must acquire a franchise dealer license in addition to the GDN.
The GDN is the basic dealer license that enables a person to buy, sell or exchange any type of used vehicle for which the number has been issued. The GDN licenses are available in many categories and you need to make the choice during the application of a new license. During the application process you can choose one individual license type or apply for multiple license types. If you want to choose multiple types, you may have to submit multiple applications.
License Types
Independent Motor Vehicle � Buy, sell and exchange any type of used ATVs, motorcycles and motor scooters. May also sell neighbourhood vehicles. Buyer�s temporary tags, dealer temporary tags, dealer license plates on motor cycles only may be used. Bond needs to be provided. Get Bonded Now.
Independent Motor Cycle � Buy, sell and exchange used ATVs, motorcycles and motor scooters. Buyer�s temporary tags, dealer temporary tags, dealer license plates on ATVs, motor scooters and motor cycles only may be used. Bond needs to be provided. Get Bonded Now.
Travel Trailer � Buy, sell and exchange used travel trailer. Buyer�s temporary tags, dealer temporary tags, dealer license plates on travel trailers only. Security requirement is exempted.
Trailer or Semitrailer � Buy, sell and exchange used travel trailer and semitrailer. Buyer�s temporary tags, dealer temporary tags, dealer license plates on travel trailers and semitrailers only. Security requirement is exempted.
Wholesale Dealers � Sell and exchange vehicles only with other licensed dealers. A five vehicle display area is not required. Vehicles cannot be sold to retail purchasers. Wholesale vehicle dealers may buy, sell and exchange used vehicles (motor vehicles, motor cycles and travel trailers, used trailer and semitrailer). Metal dealer license plates and temporary tags may be used. Bond needs to be provided. Get Bonded Now.
Wholesale Motor Vehicle Auction � Vehicles can be sold by bid only to licensed dealers. This needs to be done at a permanent location in a bona fide auction. Bond to be provided. GDN should not be made available to any other person for the purpose of auction of vehicles. The GDN may be issued for only one particular wholesale auction at a specified location. A regular motor vehicle GDN may be issued for a location for which a wholesale GDN has been issued. Get Bonded Now.
Independent Mobility Motor Vehicle Dealer License � This license allows the dealer to sell new mobility motor vehicles. This is a motor vehicle that is designed to transport a person with disability.
Now that you have gained knowledge about the different license types, you need to understand how the application process works. Each license type has detailed information about the documents required to apply for each one of them. All licenses are issued for a period of two years and are not transferable to any other dealer.
Understanding the Different Types of Texas Auto Dealer Licenses
The total GDN fee is $700.00. The fee for dealer license plate is $90.00. You need to specify the number of metal dealer license plates you require. There is a limit to the number of metal dealer license plates you can order.
You can apply for the metal dealer license plates with a new application, renewal and any time during the license period. You can choose to make the payment using a credit card. The renewal fee for each GDN is $400.00 and for each dealer license plate is $90.00.
If you are planning to relocate to a location that is outside the city limits of the existing location, you may have to make a new application for the license. Relocation of any type has to be conveyed to the licensing authorities so that changes are made to the license.
Documents Attached to Application
Ownership information
Proof of identity � A photo copy of the current driver�s license of owner of the dealership or managing partner of the dealership. If it is a general partnership, then the driver�s license of each partner has to be submitted. Apart from this you may also submit a valid passport or any state issued identification card.
Assumed name certificates � These certificates need to be issued by proper authorities. The Texas Secretary of State is the proper authority for issuing assumed name certificates for corporations, LLCs, LLPs and LP. For general partnership and sole proprietor, it is the county clerk in the county in which the dealership is situated. The assumed name on the application must match with the assumed name that you have registered.
Certificate of incorporation or partnership
Auto dealer surety bond � GDN types (motor vehicle dealer, motorcycle dealer, wholesale only dealer, wholesale motor vehicle auction, independent mobility vehicle dealer) that are not licensed as a franchise dealer need to submit an auto dealer bond of $25,000.00. The car dealer surety bond has to be supported by a power of attorney from a surety company. A separate auto dealer bond is required for each category of license. Get Bonded Now.
When submitting theauto dealer surety bond along with the application, you need to ensure that the surety bond is on forms that matches the approved sample in the package. The business name that is to be on the GDN must be shown on the bond. The information provided on the bond must match exactly with that of the license application. This includes the address.
The auto dealer bond must be issued for at least 2 years and must expire on the last day of the month. This should correspond with the dealer license expiration date. The lease cannot end prior to the bond expiration. The bond must be signed and dated by both the dealer and bonding agent. All required signatures need to be there on the bond.
If there are any kind of typographic errors or misspellings it can invalidate the bond. It needs to be corrected with a rider and power of attorney. If additional locations are applied for, then the address of all these locations must be on the bond.
Application Process
After the application is received it is processed by finance for fees. The Texas Comptroller of Public Accounts processes money orders and checks. The credit card payments are processed by TxDMV Motor Vehicle Division. If the fee is not processed, the license is not approved. The fee process is the first step to issue a Texas car dealer license.
The application is then scanned into the licensing system and a work item number is allotted. Email conformation is sent by the licensing system providing item work number and other basic details. The application is then reviewed with the information that has been provided. If there are any type of deficiencies more information is sought.
The licensing specialist may call or mail you about the list of deficiencies in the application and how they need to be corrected. The deficiencies need to be corrected and relevant documents submitted. This will be checked once again before sending the GDN to the mailing address mentioned in the application form.
Dealer License Renewal
The term of each license is two years. The licensing authorities will send a notice 75 � 90 days prior to expiration. The renewal notice needs to be returned with relevant documents along with the proper fees at least 45 days before the license expiration. The responsibility of maintaining the license is with the dealer and if they do not receive a notice they need to contact the licensing authorities.
One of the important things that you need to remember is that there is no grace period for renewal of license. After the license expires you may not be able to sell and exchange any type of vehicle. The dealer plate also expires with the license. Dealers sending renewal forms after expiration of license may have to pay penalty for renewal. The penalty fee is 50% of the total license fee. The renewal process has to be completed within 90 days or you may have to apply for a new license.
Dealers are advised to provide good contact numbers in the license application or renewal forms so that the licensing authorities can contact them immediately for any kind of additional information. It is best to review the application form and the documents attached before sending them for processing. The name, dates and addresses on the bond should be entered correctly.
If you are uncertain about any of the documents to be submitted or any other aspect of the application, it is best to talk with the licensing authorities so that you are able to make a proper submission. This can ensure quick processing and you may be able to get your Texas car dealer license fast.
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Frequently Asked Questions
What are the differences between retail and wholesale car dealer licenses?
The main differences between retail and wholesale car dealer licenses are that retail dealers can sell directly to consumers, while wholesale dealers can only sell to other dealers. Retail dealers must also meet additional requirements, such as maintaining a physical showroom.
Do I need a bond to get a wholesale car dealer license?
In order to obtain a wholesale car dealer license, a bond is typically required. The specific bond requirement may vary by state, so it is important to check the licensing requirements in your area.
How much does a dealer license cost in my state?
The cost of a dealer license in your state depends on various factors, such as the type of license, your location, and any applicable fees or taxes. The exact cost can vary, so it's best to check with your state's licensing authority for the most up-to-date information.
How long does it take to get a wholesale car dealer license approved?
The process of getting a wholesale car dealer license approved typically takes 4-6 weeks, depending on the state and the completeness of the application.
What is the cost of a wholesale car dealer license application?
The cost of a wholesale car dealer license application varies depending on the state and local regulations. The application fee typically ranges from $100 to $500, plus additional fees for fingerprinting, background checks, and other requirements.
What are the benefits of having a wholesale car dealer license?
Having a wholesale car dealer license allows access to wholesale vehicle auctions, enabling the purchase of vehicles at wholesale prices, which can lead to increased profit margins for resale.
How long does it take to get a wholesale dealer license?
The process of obtaining a wholesale dealer license typically takes 4-6 weeks, depending on the state's requirements and the applicant's responsiveness in submitting the necessary documentation.
Do I need a wholesale dealer license to buy in bulk?
Whether you need a wholesale dealer license to buy in bulk depends on your location and the type of products you intend to purchase. It's recommended to check your local regulations to determine the specific requirements.
How do I apply for a wholesale car dealer license online?
Applying for a wholesale car dealer license online involves submitting the necessary forms, documents, and fees to the appropriate state or local authorities responsible for licensing motor vehicle dealers.
What is the cost of a wholesale dealer license?
The cost of a wholesale dealer license varies by location, but generally ranges from $100 to $500 annually. The specific cost depends on the state or local jurisdiction's licensing requirements.
Do I need to complete a training course for a wholesale car dealer license?
The requirements for a wholesale car dealer license typically include completing a training course or program, as well as meeting other state-specific criteria.
How do I get a wholesale dealer license?
To obtain a wholesale dealer license, you must typically register your business, obtain the necessary permits and licenses, and meet any specific requirements set by your state or local government.
What are the requirements for a wholesale dealer license?
The requirements for a wholesale dealer license typically include obtaining a business license, registering with the state, and meeting specific industry regulations and tax obligations.
What are the requirements for obtaining a wholesale car dealer license?
The requirements for obtaining a wholesale car dealer license typically include obtaining a business license, registering with the state, passing a background check, and meeting specific bonding and insurance requirements.
What documentation is needed for a wholesale license?
The documentation needed for a wholesale license typically includes a business license, sales tax permit, and potentially additional documentation depending on the specific state or local requirements.
Can I upgrade from a retail to wholesale license?
Upgrading from a retail to a wholesale license is possible. Contact your licensing authority to learn about the process and requirements for upgrading your license.
What are the renewal fees for a dealer license?
The renewal fees for a dealer license vary by state and can range from $50 to $500 or more, depending on the jurisdiction and the type of dealer license.
Do wholesale car dealers require a physical location?
Wholesale car dealers do not necessarily require a physical location, as they can operate through online platforms and work with a network of independent dealers or brokers.
What inspections are needed for a wholesale license?
The inspections needed for a wholesale license typically include health, safety, and zoning inspections to ensure compliance with local regulations.
Is insurance mandatory for wholesale car dealers?
Insurance is mandatory for wholesale car dealers. Wholesale car dealers are required to have insurance to cover liability and protect their inventory and operations.
How do I transfer a wholesale dealer license?
Transferring a wholesale dealer license involves completing the necessary paperwork and submitting it to the appropriate licensing authority, adhering to any state-specific requirements, and ensuring the new location meets all necessary legal and regulatory standards.
Are there age restrictions for obtaining a dealer license?
The age requirements for obtaining a dealer license vary by location, but typically an individual must be at least 18 years old to apply.
Can a sole proprietor get a wholesale dealer license?
A sole proprietor can obtain a wholesale dealer license, which allows them to purchase goods at wholesale prices for resale.
What types of vehicles can I sell wholesale?
You can sell a variety of vehicles wholesale, including cars, trucks, SUVs, vans, and motorcycles, as long as they meet the wholesaler's requirements for age, mileage, and condition.
How often must I renew my dealer license?
The renewal period for a dealer license is typically annual, requiring you to renew your license on a yearly basis to maintain its validity and continue operating as a licensed dealer.
What penalties exist for operating without a license?
Operating without a license can result in penalties such as fines, license suspension, or even criminal charges, depending on the jurisdiction and nature of the unlicensed activity.
What is the application process for a dealer license?
The application process for a dealer license involves submitting required forms, passing examinations, and meeting financial and other regulatory requirements set by the relevant licensing authorities.
Can I apply for a dealer license by mail?
You can apply for a dealer license by mail. The application process and requirements for a dealer license may vary by state, so it's important to check the specific guidelines in your local jurisdiction.
What are common mistakes in license applications?
Common mistakes in license applications include incomplete or incorrect information, missing required documents, failure to renew on time, and not understanding the specific requirements for the license being applied for.
How does my credit score affect my application?
Your credit score is a key factor in determining your eligibility for loans, credit cards, and other financial products. Lenders use your credit score to assess the risk of approving your application.
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Frequently Asked Questions
What is the cost of a Florida surety bond premium?
The cost of a Florida surety bond premium depends on various factors, such as the bond type, the bond amount, and the applicant's creditworthiness. Typically, the premium ranges from 1% to 5% of the total bond amount.
What is a Florida surety bond and how does it work?
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What types of Florida surety bonds are available for licensees?
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What types of nationwide surety bonds are available?
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What is the purpose of nationwide surety and fidelity bonds?
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Who requires a nationwide surety bond in the United States?
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What is the cost of a nationwide surety bond?
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What is a nationwide surety bond and how does it work?
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Can I get a Florida surety bond with bad credit?
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Can I get nationwide surety bonds with bad credit?
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What types of businesses need nationwide surety bonds?
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Are nationwide surety bonds required by law?
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Who needs a Florida surety bond in the construction industry?
Contractors, subcontractors, and construction businesses in Florida are required to obtain a surety bond to ensure they fulfill their contractual obligations and protect project owners, suppliers, and workers.
How do I obtain a Florida surety bond for my business?
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How long does it take to get approved for a Florida surety bond?
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What factors influence Florida surety bond costs?
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How do Florida surety bonds protect businesses?
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What are common misconceptions about Florida surety bonds?
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Which industries commonly use Florida surety bonds?
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What are the benefits of nationwide surety bonds?
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How do I file a claim on nationwide bonds?
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What documents are needed for a nationwide bond?
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What happens if I default on a surety bond?
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How are nationwide surety bonds regulated?
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Can I change the terms of my surety bond?
The terms of a surety bond can typically be modified, but the process may vary depending on the type of bond and the specific requirements of the obligee. Consult with your surety bond provider to understand the options available for modifying the terms of your surety bond.
What is the renewal process for Florida surety bonds?
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How do nationwide bonds differ from state bonds?
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What risks are covered by fidelity bonds?
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About Single Source Surety
Personalized Service and Trusted Expertise
As a family-owned business, Single Source Surety takes pride in offering personalized service and genuine care for our clients. We understand that you've built your business on hard work and dedication, and we're here to provide the peace of mind you deserve when it comes to securing the right bonds at the right price.
Our in-house surety bond underwriter authority allows us to assemble the exact bond you need, no matter your industry. We only work with "A" rated U.S. Treasury listed Insurance Companies, ensuring the highest level of trust and reliability.
