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

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