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 Transportation 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?
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.
Frequently Asked Questions
- What happens if I operate without a GDN bond?
- The bond is a condition of a Texas dealer license (§503.033), and dealing without a valid license and bond is a misdemeanor punishable by a fine of up to $5,000, which a court can triple if it was wilful (Tex. Transp. Code §503.094), plus civil penalties of up to $1,000 per violation, per day (§503.095).
- Can I get my certificate the same day?
- Sometimes. Our carrier, RLI, reviews each dealer application and sets the premium before you pay; once it is approved and paid, the bond certificate is issued online. Some applications are declined, so apply well before your licence expires.
Texas GDN Bond by City
- GDN Bond — Dallas — DFW area dealers
- GDN Bond — Houston — Harris County dealers
- GDN Bond — San Antonio — Bexar County dealers
- GDN Bond — Austin — Travis County dealers
- GDN Bond — Fort Worth — Tarrant County dealers
- GDN Bond — Plano — Collin County dealers
- GDN Bond — Arlington — Arlington / Mid-Cities dealers
- GDN Bond — El Paso — El Paso County dealers