Deep state — Texas

How to get a dealer license in Texas

The full Texas path for the license most new dealers need — the Independent Motor Vehicle Dealer — General Distinguishing Number (GDN) — with every requirement cited and the Year-1 cost built from published figures, not copied from a roundup. Sellers of cars to the public start here; selling to dealers only? The path checker prices the wholesale route too.

The requirements

RequirementTexas rule
EducationA 6-hour web-based dealer education course from a TxDMV-approved provider is required for first-time independent GDN applicants.
ExamNo separate state exam — the approved course is the requirement.
Surety bond$50,000 — Required by Transportation Code §503.033 (raised from $25,000 in 2023). You pay a premium (estimated $500–$1,500/yr), not the bond amount. One national surety advertises the Texas bond at about $350/yr flat; 1–3% of face is the typical range depending on credit.
Place of businessAn established place of business: office, display area, and signage, on a lease that runs the full 2-year license term.
RenewalEvery 2 years — $400 per GDN category, plus a short renewal education course for independent dealers. Texas cancels a GDN if the dealer does not assign at least 5 vehicles in 12 months, so a license you never use does not stay valid.

The true Year-1 cost (retail path)

Cost lineAmount
General Distinguishing Number (GDN) license, per category — 2-year term$700
First metal dealer plate$90
State-approved pre-licensing course TxDMV caps the approved course price at $150. Only two providers hold TxDMV approval: ADTA and TIADA (Texas Dealer Education).$149–$150
Bond premium, first year (estimate)$500–$1,500
Estimated Year-1 license-layer total$1,439–$2,440

This is the license layer only: state fees, course, and bond premium. Rent, inventory, garage insurance where your state requires it, and local permits sit on top and vary too much to print honestly. The total above sums exactly the lines above it.

Your step order

  1. Form your business (LLC or corporation), get an EIN, and register for a Texas sales tax permit with the Comptroller.
  2. Secure a lot that meets TxDMV rules — office, display area, signage — on a lease covering the full 2-year license term.
  3. Take the 6-hour TxDMV-approved dealer education course. Only two providers hold approval: ADTA and TIADA (Texas Dealer Education). The state caps the price at $150.
  4. Post the $50,000 surety bond required by Transportation Code §503.033.
  5. Apply for your GDN in TxDMV's eLICENSING system with your course certificate, bond, lease, and lot photos.
  6. Pay the $700 per-category license fee and $90 for each metal dealer plate.
  7. Pass the premises check, then set up webDEALER — Texas abolished paper buyer tags in 2025 (SB 1902), so plates are issued through the system.
  8. Register with AuctionACCESS to buy at Manheim, ADESA, and ACV auctions.

Where the approved course fits

DealerSteps is a navigation guide, not a course provider. A 6-hour web-based dealer education course from a TxDMV-approved provider is required for first-time independent GDN applicants. Take that course only from a provider on your state's official approved list — our job is everything before, around, and after it: the packet, the lot, the bond, the auctions, and your first 90 days.

Included in the $49 Dealer Playbook

  • The complete Texas playbook: application-packet walkthrough, form by form
  • Lot & office setup with inspection-readiness photo checklists
  • Bond-shopping worksheet — what actually moves your premium
  • Auction-access onboarding: AuctionACCESS → Manheim, ADESA, ACV, step by step
  • First-90-days compliance calendar and a renewal / CE tracker for all eight states
Get the Dealer Playbook — $49 one-time

One payment, yours to keep. The Playbook is a navigation guide — it is not the state-approved course (where your state requires one, it walks you to the approved providers).

Not licensed yet and still selling? Check your count first on the Texas car-sale limit page.

Quick answers

How much does a dealer license cost in Texas?

The license layer — state fees, the state-approved pre-licensing course where the state requires one, and the first-year bond premium — totals an estimated $1,439–$2,440 for the retail path, summed line by line from the published figures on this page (checked October 18, 2026). Lot rent, inventory, and insurance sit on top.

Does Texas require a dealer education course?

A 6-hour web-based dealer education course from a TxDMV-approved provider is required for first-time independent GDN applicants. DealerSteps is a navigation guide, not a course provider — where a course is required, take it from a provider on the state's official approved list.

How big a surety bond does a Texas dealer need?

$50,000 for the retail path. Required by Transportation Code §503.033 (raised from $25,000 in 2023). You pay an annual premium — estimated $500–$1,500 — not the bond amount.