Texas MVD Bond pricing starts at $220.00 for 2 years for well qualified applicants
Texas Department of Motor Vehicles requires all auto dealers secure a 2 year surety bond for $25,000.
As part of the GDN licensing requirements, motor vehicle, motorcycle, wholesale only, wholesale motor vehicle auction and independent mobility motor vehicle dealers are required to purchase and maintain a surety bond at all times.
Bond amount required is $25,000 and the term of the bond corresponds with the licensing term, of two years. The bond must be submitted to the Department with all new GDN applications. The bond will need to be renewed in two-year increments while the license is active.
Texas Motor Vehicle Dealer Bond protects buyers and other consumers from fraud or misrepresentation from the dealer. It ensures that the dealer transfers proper title to each motor vehicle sold and pays all valid bank drafts, including checks related to the sale of motor vehicles. In the event that damages are paid for a valid claim against the bond, the dealer is required to immediately reimburse the surety.
These bonds are subject to underwriting, which means pricing will vary depending on your personal credit score. Applicants with great credit scores will qualify for the best bond pricing. Applicants with less than great credit can still get good bond pricing as our in house underwriter can use other factors of your business and personal finances in order to underwrite your bond.
