Who requires it
Texas Department of Motor Vehicles (TxDMV)
Auto dealer · Texas
Texas Motor Vehicle Dealer Surety Bond
Many Texas dealers who need a general distinguishing number (GDN) must post a motor vehicle dealer surety bond. Whether your GDN type is covered—and whether an exemption applies—comes from TxDMV and the Transportation Code.
Common bond amount
$50,000
Statutory amount for covered GDN security under Transportation Code § 503.033; confirm exemptions for your category.
How you file
Upload the bond through TxDMV eLICENSING; align the term to the license
Renewal
Must cover the GDN license term (commonly 2 years)
Who requires it
Under Transportation Code § 503.033, TxDMV generally cannot issue or renew certain motor vehicle dealer or wholesale motor vehicle auction GDNs unless the applicant shows a $50,000 surety bond from a department-approved surety. TxDMV materials say most dealer GDN types are covered, with listed exceptions (for example, certain trailer/travel-trailer categories and some franchised-dealer contexts). Check your GDN category against current TxDMV licensing guidance before you apply.
How much is required
Statute sets $50,000 for covered GDN security. You cannot pick a smaller amount to cut cost. TxDMV also notes that each applicable GDN category may need its own bond.
How to get and file it
Buy the bond from a surety authorized to write Texas motor vehicle dealer bonds, using the legal name that will appear on the TxDMV application. Upload the bond with other materials in eLICENSING. Bring GDN category, ownership details, and required effective dates so the term can line up with the license. GDN licenses often run two years. When a bond is required, TxDMV expects it to stay valid for the license term, following the effective/expiration conventions in the eLICENSING materials. Renew in time for GDN renewal so security does not lapse. Follow any TxDMV rule about posting bond notice at the place of business. If the bond cancels or is not renewed, you may lose the security TxDMV needs to keep or renew the GDN.
Cost note
$50,000 is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Required amount
- $50,000 for covered GDN security under § 503.033
- Licensing authority
- Texas Department of Motor Vehicles
- Term alignment
- Bond must remain valid for the license term when required
- Application filing
- Upload/provide the bond through TxDMV eLICENSING as instructed
Official sources
Related resources
Frequently asked questions
Is every Texas dealer required to post this bond?
No. Coverage follows the GDN categories in statute and TxDMV guidance. Some types are listed as exempt. Match your GDN type to current TxDMV instructions.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Texas application
Texas will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-05. This guide is based on verified educational content and official sources.
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