Texas Independent Car Dealer License – GDN

Do you want to buy cars at auction? Are you planning to sell more than 5 cars per year? You’ll need a Texas Independent Car Dealer License and a GDN. Learn how to get one by reading the information below.

Why do I need a Texas Independent Car Dealer License?

The Texas DMV states that you must obtain a dealer’s license if you meet one of the following:

  • Sell more than 5 cars titled in your name in one year; or
  • Sell 1 or more cars not titled in your name in one year.

Another reason you’ll need the license is so you can buy cars at auction. You must be a licensed dealer to participate.

What types of Texas Used Car Dealer Licenses are there?

Texas has many different auto dealer licenses. However, the independent dealer license requires you to obtain what’s called a GDN. GDN’s are otherwise known as general distinguishing numbers. You may also here these referred to as a “P Number”. Listed below are the names for the different GDN’s under the Texas Independent Dealer License:

  • Motor Vehicle Dealer – Cars, trucks, buses, vans, etc.
  • Motorcycle Dealer – Motorcycles, scooters, ATV’s, etc.
  • Travel Trailer Dealer – Non-motorized RV style trailers
  • Trailer Semi-Trailer Dealer – Trailers and semi-trailers
  • IMMV Dealer – Vehicles made to support those with disabilities
  • Wholesale Dealer – Dealers who only sell to other dealers – no retail sales
  • Wholesale Auction Dealer – Required to hold an auction not to attend one – Auctioneer’s license

How much does the Texas Independent Dealer License cost?

The state fee for your license is $700 for a two year term. This allows you to designate one GDN under your license. You may designate more than one GDN if you’d like. However, each additional GDN will cost an additional $700. You may also request dealer plates for a fee of $90.

Do I need a surety bond?

Yes, you’ll need a $50,000 surety bond for each GDN you request. The exceptions are the travel trailer and trailer semi-trailer licenses. Please note that a separate bond is required for each GDN you request. They cannot be combined under one $50,000 motor vehicle dealer bond. You can learn more about Texas’ motor vehicle dealer bond here.

How long will it take to get my license?

The time it takes to get your license is based on a few factors. The first is the current workload or number of applicants being processed by the state. The second is having the correct information needed for your application. Some of these items are listed below:

  • Photos of business location;
  • An executed lease; and
  • Surety bond.

In addition to these items, you’ll need a valid government ID. You’ll also need to incorporate your business in the state of Texas.

Do you want help getting your Texas Independent Dealer License?

Getting a Texas car dealer license is confusing. However, it doesn’t have to be! We help individuals and businesses alike navigate the licensing process. Learn more about what we do here or apply online today!