Question 1

Do auto dealers in Houston need a GDN bond?

Accepted Answer

Yes. All Texas auto dealers, including Houston and Harris County dealers, must maintain a $50,000 General Distinguishing Number (GDN) surety bond with TxDMV as a condition of their dealer license under Texas Transportation Code §503.033. The bond requirement applies to all dealer license categories — independent, franchised, wholesale, salvage, and motorcycle dealers.

Question 2

How much does a Houston GDN dealer bond cost?

Accepted Answer

GDN dealer bonds through Quantum Surety start at $250 for the full 2-year term, which is RLI's minimum premium. RLI prices each bond, and your exact premium is confirmed before you pay.

Question 3

What is a GDN bond and what does it cover?

Accepted Answer

A GDN (General Distinguishing Number) bond is a $50,000 surety bond required by TxDMV for all Texas auto dealer license holders. It protects consumers and the state from losses caused by dealer misconduct — including odometer fraud, title washing, failure to remit sales tax, selling vehicles without proper title, and misrepresentation. Consumers can file a claim against the bond to recover losses.

Question 4

What happens if my Houston GDN bond lapses?

Accepted Answer

If your GDN dealer bond lapses, TxDMV will deactivate your Houston dealer license. Without an active license and bond, you cannot legally buy, sell, or title vehicles in Texas. Renewing before your bond expires is critical. Quantum Surety offers free renewal reminders so Harris County dealers never have a coverage gap.

GDN Bond — Houston, Texas