17digit / How to get a Texas used car dealer license
Texas GDN dealer license · Reviewed July 2026
How to get a Texas used car dealer license
A practical checklist for an Independent Motor Vehicle General Distinguishing Number (GDN), based on current TxDMV guidance. License type matters: wholesale, motorcycle, trailer, salvage, and franchise operations follow different rules.
Texas GDN costs to plan for
TxDMV currently lists a two-year GDN fee of $400. Plates, training, fingerprints, bond premium, entity, and premises are separate.
| Item | Cost | Note |
|---|
| Independent GDN license | $400 | Current TxDMV fee; two-year term |
| Dealer plate | $90 each | If requested and approved |
| Six-hour pre-license education | Up to $150 | Required for a new Independent Motor Vehicle GDN |
| $50,000 motor-vehicle dealer bond | Premium varies | Coverage amount, not the amount normally paid |
| Fingerprints, entity, zoning, and premises | Varies | Follow TxDMV instructions and obtain quotes |
2026 step-by-step checklist
1Choose the correct GDN category
An Independent Motor Vehicle GDN covers used cars, trucks, motor homes, and certain other vehicles. Wholesale and other categories have different privileges and premises rules.
Multiple GDN categories can require separate applications and separate bonds. 2Form the business and register its name
Register the entity with the Texas Secretary of State when applicable and obtain the correct assumed-name documentation for the business location.
The legal name and address must agree across eLICENSING, bond, premises, and supporting documents. 3Secure compliant dealership premises
TxDMV requires an office, permanent sign, posted hours, secure records and plate storage, business photographs, and zoning or occupancy documentation. A retail motor-vehicle dealer generally needs a five-vehicle display area; wholesale dealers are exempt from that display-area requirement.
Use the current Dealership Premises Checklist before signing a long lease. 4Complete the approved dealer-education course
New Independent Motor Vehicle GDN applicants must complete at least six hours of approved online education and upload the certificate in eLICENSING.
The requirement does not apply to every GDN category, so confirm the selected license type. 5Obtain the required $50,000 surety bond
Most independent motor-vehicle and wholesale dealers must obtain the TxDMV motor-vehicle dealer bond. A separate bond can be required for each bonded GDN category.
Make sure the business name, address, dates, signatures, and power of attorney are correct. 6Assemble identity and premises documents
Prepare current identification for required owners and principals, business-registration documents, premises photos, zoning or occupancy evidence, training certificate, and bond documentation.
The eLICENSING user guide identifies the upload requirements for each section. 7Submit the application through eLICENSING
Create the application in TxDMV eLICENSING, select the correct GDN type, upload the supporting documents, and pay the applicable fees.
Processing payment does not mean the license has been approved; monitor the work item for deficiencies. 8Wait for fingerprint instructions
TxDMV requires fingerprints for GDN applicants and specified owners, officers, directors, managers, partners, and representatives.
Do not visit the fingerprint vendor until TxDMV confirms fingerprints are required and sends the instructions. 9Resolve deficiencies and wait for approval
A licensing specialist reviews the application and contacts the applicant if corrections or additional documents are needed.
You may not operate as a dealer until the GDN is approved. 10Complete post-license tax and inventory filings
Within 30 days of the license active date, contact the county tax office and appraisal district to establish Motor Vehicle Inventory Tax accounts and learn the monthly statement and annual declaration requirements.
Seller-financed dealers should also review the Comptroller’s motor-vehicle tax permit and reporting rules.
Frequently asked questions
How much is a Texas used-car dealer GDN?
TxDMV currently lists the GDN license fee as $400 for a two-year term. Dealer plates are listed separately at $90 each. Other startup costs vary.
Is the Texas dealer bond $25,000 or $50,000?
Current TxDMV guidance states that most covered dealers need a $50,000 motor-vehicle dealer surety bond. The bond premium is not normally the full coverage amount.
Do I need a car lot for a Texas wholesale license?
TxDMV says wholesale dealers are not required to have a five-vehicle display area, but they still need compliant licensed premises and may sell only to licensed dealers.
Should I get fingerprinted before applying?
No. TxDMV specifically instructs applicants to submit the application first and wait for fingerprint instructions from the Motor Vehicle Division.
What paperwork software can I use after approval?
17digit prepares the first three dealer packets free and then charges $9.99 per printed packet, without a monthly subscription.
Once your GDN is active, paperwork should not become another monthly bill.
Enter the VIN, buyer, and deal once. Your first 3 packets are free; after that, pay $9.99 per printed packet.
Create my first packet free →
Educational information only—not legal, tax, bond, insurance, or licensing advice. TxDMV rules, fees, forms, and local premises requirements can change. Confirm the current requirements for your exact GDN category before filing or spending money.