Texas GDN Bond — General Distinguishing Number Dealer Bond

A Texas GDN bond is a $50,000 surety bond required by the Texas Department of Motor Vehicles (TxDMV) under Texas Occupations Code §503.033. All motor vehicle dealers must hold a valid GDN bond before a dealer license (General Distinguishing Number) can be issued or renewed.

Dealer Types That Require a GDN Bond

  • New Motor Vehicle Dealer — $50,000 GDN bond
  • Used Motor Vehicle Dealer — $50,000 GDN bond
  • Wholesale Motor Vehicle Dealer — $50,000 GDN bond
  • Motorcycle Dealer — $50,000 GDN bond
  • Buy Here Pay Here (BHPH) Dealer — $50,000 GDN bond
  • Lease / Finance Company — $50,000 GDN bond

How Much Does a Texas GDN Bond Cost?

Most dealers pay $100–$300/year. Rates start at 0.5% of the $50,000 bond amount for dealers with good credit. Bad credit dealers may pay up to $600/year. All quotes are instant — no waiting.

Frequently Asked Questions

What happens if I operate without a GDN bond?
Operating without a valid GDN bond is a Class A misdemeanor under Texas Occupations Code §503.033 — fines up to $4,000 and up to one year in jail, plus license revocation by TxDMV.
Can I get my certificate the same day?
Yes. Quantum Surety issues instant PDF bond certificates by email. Apply online, get approved, download your certificate — all in under 10 minutes.
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