How to Get a Dealer License in Texas (2026)
In Texas, dealers are licensed by Texas Department of Motor Vehicles (TxDMV), Motor Vehicle Division. The bond is $50,000 (Independent motor vehicle / motorcycle / mobility / wholesale GDN). Every fact below links to the official page it came from.
Texas dealer license facts
| Licensing agency | Texas Department of Motor Vehicles (TxDMV), Motor Vehicle Division |
|---|---|
| License name | Independent Motor Vehicle GDN · Wholesale Dealers GDNsource |
| Sales that trigger a license | Confirm with Texas Department of Motor Vehicles (TxDMV), Motor Vehicle Division |
| Surety bond | $50,000 (Independent motor vehicle / motorcycle / mobility / wholesale GDN)source |
| Application / license fees | License fee per GDN category: $700source |
| Pre-licensing education | New independent motor vehicle GDN applicants must complete a one-time, TxDMV-approved online pre-licensing course of at least 6 hours (3 hours for renewal applicants licensed less than 10 years as of Sept. 1, 2019); does not apply to motorcycle, travel trailer, mobility, trailer/semitrailer, wholesale, or franchised dealers.source |
| Place of business | Dealer must maintain a private office (min. 100 sq ft, 7-ft ceiling, desk, two chairs, internet) in a permanent building not in a residence, with a permanent business sign, secure metal-plate storage, and posted business hours; retail dealers must be open at least 4 days/week for 4 consecutive hours/day.source |
| Wholesale-only license | Texas issues a separate Wholesale Dealers GDN; wholesale dealers may sell only to other licensed dealers, not retail purchasers, and are not required to have a five-vehicle display area.source |
| Last checked | 2026-09-24 |
Steps to get licensed in Texas
- Pick the license. Texas issues: Independent Motor Vehicle GDN, Wholesale Dealers GDN. A wholesale-only license is available if you only sell to dealers.
- Set up the place of business. Dealer must maintain a private office (min. 100 sq ft, 7-ft ceiling, desk, two chairs, internet) in a permanent building not in a residence, with a permanent business sign, secure metal-plate storage, and posted business hours; retail dealers must be open at least 4 days/week for 4 consecutive hours/day.
- Finish the required course. New independent motor vehicle GDN applicants must complete a one-time, TxDMV-approved online pre-licensing course of at least 6 hours (3 hours for renewal applicants licensed less than 10 years as of Sept. 1, 2019); does not apply to motorcycle, travel trailer, mobility, trailer/semitrailer, wholesale, or franchised dealers.
- Buy the surety bond. Required amount: $50,000 (Independent motor vehicle / motorcycle / mobility / wholesale GDN).
- Apply to Texas Department of Motor Vehicles (TxDMV), Motor Vehicle Division. Published fees: License fee per GDN category: $700.
Flipping without a license in Texas
We could not find an official sales-count threshold for Texas. Before selling more than your own personal vehicles, Confirm with Texas Department of Motor Vehicles (TxDMV), Motor Vehicle Division.
Texas data on CarFlipIQ
FAQ
Who issues dealer licenses in Texas?
Texas Department of Motor Vehicles (TxDMV), Motor Vehicle Division licenses motor vehicle dealers in Texas. License types include: Independent Motor Vehicle GDN, Wholesale Dealers GDN.
How much is the dealer bond in Texas?
The Texas dealer surety bond is $50,000 (Independent motor vehicle / motorcycle / mobility / wholesale GDN). You pay a surety company a yearly premium, not the full bond amount.
How much does a dealer license cost in Texas?
Published state fees: License fee per GDN category: $700. Add the bond premium, insurance, and the cost of your place of business.
Do I need to take a course to get a Texas dealer license?
New independent motor vehicle GDN applicants must complete a one-time, TxDMV-approved online pre-licensing course of at least 6 hours (3 hours for renewal applicants licensed less than 10 years as of Sept. 1, 2019); does not apply to motorcycle, travel trailer, mobility, trailer/semitrailer, wholesale, or franchised dealers.
Is there a wholesale-only dealer license in Texas?
Texas issues a separate Wholesale Dealers GDN; wholesale dealers may sell only to other licensed dealers, not retail purchasers, and are not required to have a five-vehicle display area.
Price Texas cars before you buy them
Check any vehicle against live Texas listings, then decide what to bid.
Not legal advice. Requirements change; confirm with Texas Department of Motor Vehicles (TxDMV), Motor Vehicle Division before you apply. Last checked 2026-09-24.