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Dealers · licensing · Texas

How to get a dealer license in Texas.

What it takes to get a used car dealer license in Texas, with a link to the official page for every fact.

Checked October 10, 2026 against the official pages linked below. Licensing agency: Texas Department of Motor Vehicles.

The requirements

Licensing agency Texas Department of Motor Vehicles · source
Surety bond (used dealer) $50,000 Motor Vehicle Dealer's Surety Bond · source
Pre-licensing education Required — 6 hours online pre-licensing course (independent motor vehicle GDN; 3 hours for renewal applicants) · source
Place of business Private office of at least 100 sq ft in a permanent-roof building (no virtual office); display space for at least 5 vehicles; permanently mounted sign with letters at least 6 inches (no banners); posted hours, open at least 4 days/week, 4 consecutive hours/day. · source
License fee See the official page

Steps

  1. Start with the licensing agency, Texas Department of Motor Vehicles: read its dealer page and get the current application.
  2. Complete the pre-licensing education: 6 hours online pre-licensing course (independent motor vehicle GDN; 3 hours for renewal applicants).
  3. Set up your place of business: Private office of at least 100 sq ft in a permanent-roof building (no virtual office); display space for at least 5 vehicles; permanently mounted sign with letters at least 6 inches (no banners); posted hours, open at least 4 days/week, 4 consecutive hours/day.
  4. Buy a surety bond: $50,000 Motor Vehicle Dealer's Surety Bond.
  5. Submit the application with the fees listed on the official page.
  6. If you will finance your own deals, check the separate finance license below before your first contract.

Built from the facts above. Insurance, background checks and zoning rules may also apply; the agency's page has the full list.

Planning to finance your own deals?

Selling vehicles on payment plans, including buy-here-pay-here, requires a Motor Vehicle Sales Finance license from the Office of Consumer Credit Commissioner. Source.

This is a summary, not legal advice. The agency's own page governs. All states