How to get a Texas Car Dealer License [In only 4 steps!]

How to get a Texas Car Dealer License [In only 4 steps!]

How to get a Texas dealer license. The first step is to obtain what is called a general distinguishing number also known as a GDN. This is basically like your license that allows you to buy. sell. and trade vehicles (primarily used vehicles). So if you would also like to sell new vehicles or new motorcycles, you would need to get a separate GDN for each of those licenses. Step two is to apply for your Texas dealer license by filling out an application. There are many different types of applications, so just make sure you’re applying for the right one. License applications include Franchise, Independent, In transit, Leasing, Manufacturer, Distributor, Representative, Salvage, and Converter. The third step is to secure a 25,000 motor vehicle dealer bond. Currently, only franchise and trailer dealers do not need to get bonded, so any other license type will need to get this bond. You can purchase a bond from a surety bond company. The final step is to submit your paperwork and licensing fees to the DMV. You will receive an email confirmation when the Department receives your application. If your application is missing information, the Department will mail it back to you so you can resubmit. Upon approval, you will be mailed your license and your dealer plates.

About the Author: Michael Flood


  1. I would love if you could post a video like this for MINNESOTA!!! I have looked everywhere and I can not find a good simple straight to the point video ! Thanks for all the good info tho!

  2. Which is cheaper and better, the independent license or the salvage for Texas? Only plan to sell no more than 5 per year just starting out.

  3. If the GDN is enough to buy, sell or trade used cars, do I still need to get a license? I’m a little confused there.

  4. What type of license do I need if I mainly want access to the auto auctions, and flip a few cars on the side? Not interested in salvage at all.

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