There are a few important things you should know before getting your car dealer license in Texas. First, you will need to complete the TxDMV eLICENSING online application and take the Texas Dealer Education pre-licensing training course. The eLICENSING application portal is where you will submit all your required documents, including your certificate from our pre-licensing course. We cover the dealer license application process extensively in our training course.
To obtain your car dealer license in Texas, you will also be subject to certain premises requirements. You will be required to show proof of an established and permanent place of business. The most important thing to understand is that, regardless of how you plan to acquire and/or sell your inventory, you do have to have a real physical dealership location, and you must have space to display at least five vehicles. We go over more specific details about these requirements in section 1 of the pre-licensing course.
To obtain your car dealer license in Texas, you will also need to submit evidence of a $50,000 dealer surety bond with your completed application. The surety is a line of credit that will cost you around two-to-three hundred dollars, similar to an insurance premium. You will find some tips for obtaining and completing your surety bond accurately in our course.
To obtain your car dealer license in Texas, you will also need to submit evidence of a $50,000 dealer surety bond with your completed application. The surety is a line of credit that will cost you around two-to-three hundred dollars, similar to an insurance premium. You will find some tips for obtaining and completing your surety bond accurately in our course.
A Texas auto dealer license provides the legal authorization to sell used cars in the state. To become a Texas car dealer, you must apply for a license. First of all, to be a Texas car dealer, you will need a general distinguishing number (GDN), which will allow you legally to act as a car dealer in the state. The state will provide your GDN license, which are broken into categories. Most commonly, people are interested in becoming independent motor vehicle dealers. For this type of GDN, dealers “may buy, sell, or exchange any type of used cars, trucks, motor homes, and neighborhood vehicles,” according to the Texas Department of Motor Vehicles (TxDMV). Dealers with this license “may buy, sell, repair, or rebuild salvage motor vehicles and nonrepairable motor vehicles.” And they “may use dealer’s temporary tags, buyer’s temporary tags, and metal dealer license plates on motor vehicles only” (from the TxDMV website).
If you are at all serious about the business, then YES. An individual is allowed to sell up to four vehicles per year without a dealer’s license – kind of tough to make any money that way, huh? Plus, every one of those vehicles has to be titled in YOUR name before you sell it. Why does that matter? Because that means you will be paying 6.25% in sales tax on each vehicle you buy – BEFORE you sell it! Licensed dealers do NOT pay sales tax on vehicles they acquire for their inventory.
Oh yes, most definitely. A LOT more. And you will find most of the answers in the required pre-licensing education course that you can take here on TexasDealerEducation.com. We offer the most comprehensive and engaging course available that covers everything you need to know about how to be a Texas car dealer. And don’t just take our word for it. Our website also offers a healthy dose of Q&As about obtaining your independent dealer’s license.
Well, you could…however, it is illegal, and could result in civil proceedings being brought against you by TxDMV, the OCCC or both. Maybe worse, either agency could then oppose you ever getting your legitimate license. So DON’T DO IT.
You can’t. Under Texas law, you are required to have a licensed location to sell vehicles. If you don’t, law enforcement can (and will) seize your vehicles, impound them and not release them without proof of ownership in YOUR name on the front of the title. So get your license, join TIADA and get on the good guys’ team!
Great questions. TIADA does not endorse any specific providers, but TIADA members can search our Membership Directory in each category to see what companies are also members. It’s one of the perks of membership. You should also have a look at our Business Partners.
Sure! But the association is focused on licensed dealers. You can join today and once you get your GDN, we will be glad to add it to our system.
