Auto dealers in Texas are required to file a $25,000 motor vehicle dealer bond with the Texas Department of Motor Vehicles (TXDMV) to be licensed. Jet provides the Auto Dealer License Bond as a guarantee to the TXDMV that the public is financially protected should the car dealer fail to comply with state laws.
With Jet, the price of the Texas Auto Dealer Bond is only a small percentage of the bond limit, with the lowest rate being just $188 for two years. The rate you are approved for will be dependent on a soft credit check.
The application process can be done in under a minute. Click the button below that says apply now, follow the instructions, and receive your quick quote. The quote will be delivered via email with a link that allows you to purchase the bond directly.
$25,000 Motor Vehicle Dealer Bond
Used, wholesale, motorcycle, and independent mobility vehicle dealers are required by the Texas Department of Motor Vehicles to carry a $25,000 surety bond to maintain the GDN (general distinguishing number). Franchise and trailer dealers must have a GDN but are not required to carry the surety bond.
The bond is meant to protect the public from damages caused by auto dealers; not reporting all vehicle sales or providing an invalid title are just two of the things the bond protects the public from.
Bonds are sold for two-year terms to coincide with the licensing period. The bond must be renewed alongside the license upon its expiration date.
A judgment must first be obtained, then there can be a bond claim and subsequent payout on a Texas Auto Dealer Surety Bond. Jet Insurance Company can verify the validity of the claim, even after the judgment, and if it is valid pay up to the license bond limit of $25,000. A claim may occur if a title is not provided with the sale of a vehicle, or if the dealer tampers with the odometer.
It is a best practice for a dealer to respond to a claim. Unfortunately, it is too often a judgment will come against the dealer and the auto dealer will not respond. This will guarantee the dealer will lose the judgment and have a claim on the bond. Regrettably, the Motor Vehicle Dealer Bond is not like insurance, with surety bonds the dealer is responsible to pay Jet back for losses as well as legal fees.