$50,000 Texas auto dealer bond,
issued same-day for TxDMV.

The bond itself is $50,000 — that is the coverage amount TxDMV requires. What you pay is the premium, which is a small percentage of that $50,000 based on your personal credit. With a credit score above 700, most applicants pay $500–$1,000 for the full 2-year term. Mid-range credit runs $1,000–$2,500. Credit under 620 typically ranges $2,500–$5,000 for two years, but we still write the bond through our bad-credit programs.

House Bill 3533 (2021) doubled the required bond amount effective September 1, 2021. The Texas Legislature increased it after years of claim activity against the old $25,000 limit — dealers were selling cars with undisclosed liens, title issues, and odometer fraud, and the original bond was not enough to cover consumer losses. Every new license and renewal since that date requires the $50,000 bond.

Yes. We work with multiple surety markets, including programs built specifically for applicants with credit scores under 620, past bankruptcies, tax liens, or no credit history. The premium is higher — typically 7–10% of the bond amount over two years — but we can write almost any applicant. We do not pull credit until we are ready to bind, so a quote will not hurt your score.

The bond term is two years, matching the TxDMV license cycle. We set the renewal reminder on our end and contact you roughly 60 days before expiration. If you let the bond lapse, TxDMV will suspend your dealer license — so the renewal is not optional.

Yes. TxDMV treats each licensed location — called a "GDN" (General Distinguishing Number) — as a separate license, and each requires its own $50,000 bond. If you operate three lots, you need three bonds. We can quote them all at once on the same application.

If a consumer, TxDMV, or a taxing authority files a valid claim, the surety investigates and — if the claim is legitimate — pays out up to the $50,000 limit. The surety then seeks reimbursement from you, the dealer. That is why it is a line of credit, not insurance. Most claims come from undisclosed liens, title washing, failure to deliver title within 30 days, or unpaid sales tax.

For standard credit, same-day. We quote you by phone, email you the application, you sign electronically, and we issue the bond that day. For bad-credit applicants or applicants with complex business structures, underwriting can take 1–3 business days.

The $50,000 bond applies to all TxDMV motor vehicle dealer licenses — Independent (IND), Franchised (DLR), Wholesale (WGDN), Motorcycle (MCD), and Trailer (TRL). Wholesale-only dealers have the same bond amount as retail. Lease, rental, and drive-a-way licenses have different (usually lower) bond requirements — call us if that is your situation.